104 TRANSPORTATION 



Prices 



Another important problem at this present time is involved in the 

 relation of freight rates to general prices, as revealed by developments 

 of the last four years in the United States. An almost continuous 

 decline of freight charges characterizes the years since the close of 

 the Civil War down to 1900. The extent of this decline is indicated 

 very roughly by a fall in the average ton-mile revenue of the United 

 States from 1.92 cents in 1867 to less than three quarters of a cent 

 (.729) in 1900; or to take Massachusetts by itself, from 3.11 cents in 

 1871 to 1.22 cents in 1902. So long and unvarying did this phe- 

 nomenon appear that even traffic experts seem to have become 

 convinced that the downward impulse was irresistible, only to be 

 compensated for by increased efficiency in operation. Progress 

 during these years certainly seemed to inure to the benefit of the 

 public. 



The prosperous years since 1900 have brought a sudden and 

 remarkable change. Carriers combined, tonnage was large, and 

 commercial sentiment against departure from published rates was 

 made enforceable by amendments of the Act to Regulate Commerce. 

 The consequence has been a reversal of the downward tendency in 

 freight charges. Rates have bounded upward, in fact, if not always 

 on paper, to a degree more than commensurate with the general rise 

 of prices characteristic of the time. 



It is often difficult to prove these increases concretely. And it is 

 often easy for astute traffic experts to show averages which minimize 

 the real increases effected. The only way oftentimes to ascertain the 

 amount of increase is by going directly to the individual shippers, 

 asking them in fact what they used to pay and are now charged for 

 identical service. The complexity of traffic methods defies statis- 

 tical analysis. No general statement suffices; each rate must be 

 worked out in detail. Thus for example in the case of grain rates 

 from Chicago to New York, they were ostensibly raised from 17J to 

 20 cents per hundred pounds, an increase of 12J per cent. But only 

 when it is made evident that owing to competition old rates actually 

 paid were always from two to five cents below the quoted tariff of 

 17J cents, whereas now the full 20 cents is exacted from all shippers, 

 does the magnitude of a real advance amounting to 30 or 40 per cent 

 become apparent. The stiffening of rates may be more indirect still. 

 Rules of the Southern Railroad Association used to prescribe that for 

 all cars over 42 feet in length a minimum weight of 28,000 pounds 

 should be charged. In a particular case a shipper of wooden pails 

 states that to load 20,000 pounds of his product, wooden pails, 

 requires a longer car than this. Hence, if he be furnished one of these 

 long cars and desires a car-load rating, he must pay a nominal rate 



