Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1922-07-17
MONDAY, JULY II, 1922
FREIGHT RATES 60 PER CENT. OF WHOLESALE
Waite

g A LTHOUGH the arguments often used by shippers
N and politicians in demanding reductions in
freight would indicate impression that
rates the important affecting prices and
general prosperity depression the find
ings of the Joint Commission on Agriculture Inquiry
just reported show the exact contrary as to
rates in general" the Railway Age in editorial
in its current issue. which should interest Delaware
shippers.
For 1920 this report shows that the total freight
revenue OF all the railroads in the United States,
s44S5 9l1 OOO was only SO per cent. Of the estimated
wholesale factory value Of products Of manufacture
that year. which s625oO 100000, and that the
freight revenue shown includes only the
taon of raw every kind handled but also
the transportation for final distribution to ult-
mate point consumption" In other words while the
figure retail value of the products Of manu-
facture was not available the total amount of the
freight paid to the railroads was known and it
constituted only 50 per cent. of the wholesale
tory Therefore plain that the freight rates
been still lower percentage Of the prices
paid by the public
The freight revenues the railroads in 1900 the
port shows amounted to $1,O4s256,323, which was 90
per Of the value OF products Of manufacture; in
1910 the freight 81 ,926.94OO2s, 90
per cent Therefore wholesale products in
1920 had experienced much greater increase by 1920
than had the freight The freight revenues for
1920 however, the result OF eight months under
the advanced authorized by the Interstate Com
Tnerce Commission August IS. 1920.
Al another point tire report the proportion OF
freight transported estimated at
about SOS per based the census figures for
1914 this calculation the total production OF agri-
cultural manufactured mineral products is added
10 the imports from which is made estimated de-
duction Of these same articles which do by
railroad transportation. The estimated total value OF
sss29S that year. divided by the total rail-
road tonnage 1894 600 gives average value Of
5000 per ton. while the average freight per
s1S4.
The Congressional commission has compiled a large
amount Of data show the economic relationship Of
freight rates the prices OF agricultural products and
It urges reductions in these the ground that
they bear disproporonate relation to the prices Of
such commodities comparisons OF rates and prices
for agricultural products however based on the
prices actually paid by the wholesaler and i'm
portan indicating the relation of the freight to
received the farmer than the relation OF
the freight the price paid by the public The 4
commission finds however. that reductions in
upon the articles Of higher value. upon tonnage
moving upon so-caled class warranted |
while the rates upon agricultural products and other \
basic commodities remain their existing levels" It
also finds that freight rates highly fabricated
articles of wearing apparel as boots shoes dry
goods mems women's suits a material /
increasing reducing prices of these COM
modities."
Higher freight rates not infrequently urged as
an excuse for increases prices without Justification
the commission says. while freight rates often
considerable factor in the cost of distribution
priced heavy tonnage commodities and may restrict
the radius of distribution thereof and sometimes
prevent shipment altogether, rule freight rates
have not kept pace with in the prices Of such
articles dry goods boots shoes and other highly fab
usually purchased in less than carload
quantities and do not restrict diminish the move
ment such commodities. The amount Of
freight purchase of dry goods is small
it is difieult to show it."
The report emphasizes the statement that because
the prices Of farm products had fallen after freight
rates had been advanced the suffering from
T2-eent dollar, by its purchasing power in
terms Of transportation. But the table the
ports that is used illustrate that for
years before the decline prices products
purchasing power of the farmers dollar measured by
the amount Of transportation would buy ranged from
$1o1 to S1ss, that that period the railroad dollar
would buy less OF farm products