New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1921-06-03
EFFECT OF RAIL RATES
ON BUSINESS AND TRAVEL
DISCUSSED BY A. T. & S. F.

Washington, May 81. - Edward
Chambers, Vice President OF the At
Gibson Topeka & Santa Fe Railroad
Company, today before the Senate
Interstate Commerce Committee de-
clared that existing freight rates are
not responsible Tor the present stag
nation in the building industry. He
also asserted that the rates do not
Impose an undue burden on road
building operations.
"In cities on the Pacific Coast and
throughout the west, south and east,
conditions surrounding the building
industry appear to be about the
same Mr. {. Chambers said, The
general report is that a comparative
ly small amount OF building is be-
ing done at San Francisco, Seattle
and Portland where lumber is at the
door Conditions are the same at
Kansas City. Omaha. Chicago or
Cleveland.
"For example, Chicago has plants
within its city limits which produce
all kinds of structural iron and steel,
likewise cement. brick, lime, sand.
gravel and crushed rock, ana build
ing conditions are no different in
Chicago than in the other places men
toned"
AN illustration of the relation Of
freight rates to building enterprises.
A careful study recently made of
materials going into a typical brick
house of six rooms and bath in Phlla-
delphia with freight charges from the
usual sources OF supply of materials
shows that the freight charges
amount to approximately $50 on a
house costing $500 to build in 1920"
an ST Paul the estimated freight
charge on all material entering into
the construction OF a frame dwelling
house costing 5000 or 5000 would
aggregate about $3.50"
Taking up the effect OF present
rates on road building material Mr..
Chambers said that on the basis OF
$4,000 the average cost OF building
one mile OF concrete roadway >in ac-
cordance with the requirements Of
the Minnesota Highway Department
IS only Sl,32 Org II percent repre-
scnts the total cost of freight on the
materials and the movement OF grad
ing materials to and from the job.
Figures published by the North
western Association Of General Con-
tractors he said show that the cost
OF laying one course concrete pave
mcnt using railway tracks Tor haul
ing is S5ol per square yard OF which
only 10 percent represents freight
costs
1T can readily be seen that the
freight rate is not an undue prJpor-
ton OF the total cost OF the road"
/ Mr.. Chambers said. These roads do
not always pay freight charges, Of
ten the materials except cement, are
close to the work and are hauled by
trucks When the railroad is used
the volume is usually large and Is
moved by rail close to the work. The
very conditions surrounding the op-
GRAFTON compel the MINIMUM rates
on most OF the materials
Statistic, to show that freight rates
have had no effect upon the movement
OF iron ore and that after dcducting the
present rail and water rates from
Lake Superior to Lake Erie the pro-
duccr has received much higher
price tor hi, ore than in former years
were also read int, the record.
I'm lql7 Mr.. Chamber, said the price
al Lake Erie ports for Bcssemer ore
wa, S4z5 ton aud non -Bcsscmcr
500 while the rail rates from the
iron range, 10 Lake Superior was
SD cent, and the water rates to lakg
Eric ports IS cents. ln lgl7 the prirr
40 Lake Erie ports tor nh grade.
uf orc was $50 and S. O7 respectively