The New York herald., 1922-06-02
Rail Wages in Living Costs.

Railroad workers threatening to
resist further wage adjustments with
strikes are simply threatening to re-
sist further reductions in the pub
lies cost of living. transportation
charges are very important factor
in the cost of doing all business, from
farming and manufacturing to retail
ing food.
In the three year period preceding
the war the average transportation
bill Of the American people was un-
der three billions of dollars year.
In 1920 1t was more than six billions
of dollars year. Now If the In
creased traffic charges worked out
against the public at no more than
three billions of dollars there would
be right there of itself an additional
average load of $3.50 year on every
family in the United States. But, as
matter of cold business fact, a ma
tional transportation bill Of more
than six billions Of dollars year
does not and cannot stop short in its
cost to the public at those actual
traffic charges.
When a jobber buys and ships a
carload of potatoes he must add to
the price he pays for the potatoes
and to the price he pays for trans
porting them his interest, his insur-
ance, his percentage of loss from
shrunken weight and from spoiled
goods. Then on top of all that he
must add his selling cost and his
profit. If he does not figure in all
those items from start to finish
of the commercial operation he is
doomed to go out of the potato bust
ness a bankrupt.
The same thing is true Of the
wholesaler. Again 1t is true Of the
retailer.
II Is per cent. took care Of all the
waste, expense and profit of the job
Der and like IS per cent. took care
Of all the waste, expense and profit
os the wholesaler there would be a
jobber's addition of $3.50, 100000 to
the three billions of traffic charge
increase, and that would make
s3,450, 100000.
Then there would be a wholesalers
addition of Is per cent. to that s3.-
$50, 600, 900, or $500 10000 more, and
that would make approximately four
billions of dollars.
But the retailers selling costs are
very high percentage on the cost
of his goods laid down to him be-
cause Of the small units handled, the
high rents paid, the heavy labor
charges involved and the final deliv-
dceryb expense. The retail "markup"
to cover all those items as we'll as
the retail dealers profit can scarcely
ever be figured on the average at
less than 33 1-3 per cent. And a
33 1-3 per cent. retail markup on
nothing but transportation bill in
,rease Of four billions of dollars adds
one and a third billions of dollars
more for the ultimate consumer to
pay on that transportation bill in.
crease. And that makes the trans
portation bill increase come out
against the ultimate consumer at the
colossal total of five and third
billions of dollars.
The traffic charge increase against
the American public of five and a
third billions of dollars makes an av-
erage cost of some $265 Q year on
every family in the United States.
Such a situation cannot be permitted
to go on.
Pretty nearly everything in the
country from farm products to shoe
strings has been liquidated from war
imitation levels except transportation
and anthracite coal. Transportation.
which is bigger factor than any
other one element in the cost Of liv.
ing of the average American family.
has got to be liquidated as coal has
got to be. But transportation can.
not be liquidated unless railroad
labor is liquidated, because virtually
all the stupendous traffic rate in
creases that were piled upon the
American public during Government
operation Of the roads and during
the whole war period went into rail-
road wage increases.