Transportation Cost in America.

Hokitika Guardian, 21 June 1921, Page 4

Transportation Cost in America.

SAX FRANCISCO, May 21. New Zealanders are already aware that the United States is a transcontinental country of 1 tremendous distances, and it cannot be wondered at that transportation is a big problem, considering that the country is some 3500 miles hi width. Invariably raw materials are carried across this vast territory to be manufacture.l into finished articles at the opposite side of the Continent, and then distnouted far and wide, causing big freight costs. The farmer and the industrialist are both choked and reports from Missouri tell the familiar story of apple*, grapes, potatoes, hay, etc., never haded on the railway cars, because the price was too low to meet- cost of transportation.and yield a profit. The same occurs in Florida, whilst California describes by letter, and picture n lemon grove, that is being uprooted because tno product cannot he marketed profitably. Antipodean wool arriving in ban rruiieisco is sent ooUO miles iiy rail to liusioii, immense loads of Oriental «iIK similarly reacli Pacific Coast ports, and are hurried by special trains to New \ urk and Philadelphia, with tiie consequence that wileu finished ; nicies are brought to the West prices have become exorbitant, as the middlemen all along the line, boost charges and cost oi production- mounts rapidly Small wonder that there is now a movement to establish silk and woollen mills on tiie l’acific Coast and thereby reduce production costs considerably by the elimination of transportation costs. ' There have been slight red lotions in prices of col ton, print cloths, wool, silk, ! and leather, 'but they still remain preposterously excessive owing to railway ' costs and innumerable middlemen’s pro- ! fits. Of course, whenever the trails* i portatioii charges are materially" de- | creased, readjustment will ne actually j in sight for the people of the United States.

It is pleasing to note that some household commodities nre slumping in price. For example, coffee is but on-, shilling a pound, lard has dropped ficm Is (id per pound to 9d., eggs are cheaper than they have been for a decade, whilst sugar is hut Id a pound, vegetables, dairy products, fruit and butter all have dropped 35 to 15 pei cent in price and meat has touched a record low.