Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-06-11
FREIGHT RATE SLASH
STIMULATES BUSINESS
Direct Advantages Felt by In
dustry Whose Materials Are
Bulky and Heavy.
srAnEs ARE sliuurL, AFFECTED
National lndmsiriaI Conference Hoard
Now Making study Into Thi. mud
Wholr RHiirond situNti,n ma AZ
fectinE American Mnnufacturrrs.

state Commerce Commission. Il Is
stated IN e careful review OF the
subject by the National Retail Dry
Goods Association. should help t.
improve ns,iona! conditions OF bust.
ness
The direct advantages will be telt
IN those lines 81 Industry. such a.
construction. where msyerialss
ii2ed are conspicuous for bulk and
weight Here the reduction in costs.
amounting in volume sufficiently to
influence consumption. bids fair To
>umulat" production. increase en-
rloymont and appreciabiy expand the
huNinS capacity of tn. public
Through such indirect channels IN.
effect should finally be felt In the
dry goods trade.
Tht direct eject al tho r,duc.
ii"n Of dry goods and other mer-
,handi> - 500 IN department ana sim
mar retail stores. however viii hr
very SiiSht Against yearly sales i'm
dry goods at retail amouuting To
S',o0o.o00 goo. freight charges ugure
so neGlicibiN as 10 have no immediate,
effect.
stores Fay Small Fart Of Rates.
Expressed in actual figures. the
"'St 'NlNhalcs "NaiIaole show FIRE ie h.
charges amounting to no more than
" per cent OF merchandise cost a
the average. on merchandise received
by stores located in and near TO the
great manufacturing ceuters in the
East, the percentage rising with the
additional mileage westward In
Eastern manufactures CcnterS such
"s New York city. a considerable
bulk Of the merchandise carries no
railroad freight charges whatever.
only oue-third Of the freight charge.
on incomfas shipments is paid b\
INC stores; the two-thirds remain
ING is paid By the cousicnor with
due allowance made for all Goods
not shipped by rail. freight charges
paid directly by the stores amount
per cent Of the cost Of merchandise
handled
Tn" national industrial conference
hoard OF New York CITY. which is
now making stud- o. the relation
OF freight rates to industry IN CON
h"cti"n with other rnas.- or the rail
road situation as II bears on AmcrI-
can manufactures. has prepared
definite figures om The effect Of the
reduction in the textile ncld l:s
analysis Of the situation is:
"' ''""'t"h IN iftlGht rates re-
Gently ordered BY the Interstate
Commerce Commission will haya no
apprcciable effect on consumcrA OF
textiles, but may have a conside1bIe
ehect upon tho manufacturers of cot
ton and woollcn goods. The reason
Tor This phenomenon rs that the cost
OF transportation forms a very small
part Of the selling prices Of tho
manufactured product. while i'm many
instances II form Il relatively large
proportion OF tho price Of tho raw
commodity, such Is raw wool or raw
Gotton
Reduction Stimulates Mnnufartur.rS.
For instance. the freight rate ON
~oolen piece goods from BOSTON 10
New York by the all-raiI rotc is -
'"nts per hundred pounds. Heavy
"rot'n goods, say. sixteen on to
Inc yard, would be worth aprroXi
mateiy So per yard as sold to tho con
sumner and the total valu. ~ 100
pounds would, therefore. H.. arproxi
maic!y S3oo The freieh, raj. on
Suhicient wo"lcn piece goods 20
max" on" suit Of clothes. ar ahou,
u Yards. would. therefore. 10
S""2i. and with the new reduction Of
= o"r cent IN eastern territory there
would b" saving II suoO326. In
other words. man would have 10
produce 5000 suits OF clothes in or
dcr 10 save cent under the p,syaf,
reduction. 50 that tho price 10 Tho
consumer cannot he said 10 he an
probably affected by the new rarc.
In tn" case OF raw silk approx,-
matc!y the same thing Is true. IN.
rat" from the Western portS TO New
jersey Or Connecticut is I, cents pcr
pound OF raw silk ~ the price or