CHAPTER XVIII SHIPPING

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The means of facile transportation and the machinery of trade are the need and the development of a complex civilization. The importance of these useful adjuncts of everyday life is indicated by the fact that about one-fourth of all the people engaged in gainful occupations in civilized communities are employed in them. Nevertheless the expense of transportation and trade constitutes a tax upon the consumer which it is the aim of modern methods to reduce to the lowest limits. Recent investigations indicate that for every thirteen dollars the consumer expends for farm products the producers receive six dollars. In some directions most remarkable results have been accomplished. A recent quotation on wheat per bushel was as follows: Chicago, $0.93; Antwerp, $1.04; London, $1.06; Hamburg, $1.07. Eleven to 14 cents per bushel represents the cost of haul and commissions between Chicago and the European cities named. Methods of handling have been so perfected that from the time the western farmer places the bundle of wheat at the mouth of the threshing machine the grain literally flows through the channels of trade until it reaches the flour sack. On an average the English miller pays about 20 cents a bushel more for wheat than the American farmer receives for it.

The cost of distributing many other farm products is greater, although the range of distribution is much less. The cost of haulage and selling potatoes is from 25 to 50% of the retail price, while with hay it is still higher. The cost of distributing all forms of truck and market garden produce is high and often wasteful. Many attempts have been made to eliminate a part of this cost as well as to better the conditions of the supplies when they reach the consumer. While many individuals have been quite successful in dealing directly with the consumer, little has thus far been accomplished that affects general trade conditions. Great improvements have been made in methods of transportation and methods of preservation. Cold storage and canned goods have been the direction in which progress has been notable.

WASTEFUL METHODS OF DISTRIBUTION

Owing to customs and traditions there is frequently a great waste of effort in some of the methods of trade. The meat trade of France is an excellent illustration. Certain sections of France make a specialty of rearing cattle. At a suitable age these animals are purchased by other farmers who fatten them. Many of the small towns maintain market places at which fairs are held to facilitate these negotiations. Frequently there is a shipment from one region to another, which is conducted by a middleman. When fattened the steers are collected by a stock buyer, who may ship them to La Villette, the live stock market of Paris. Here they are placed on sale through commission men. There are the usual charges for yardage and food. After being sold the animals are driven to the slaughterhouses. The carcasses are then taken by wagon to the great market of Paris located near the center of the city. Here the retail vender of meats comes, makes his purchase, reloads the meat, which may have been unloaded less than an hour before, carries it to his shop, where the consumer seeks it. The number of people concerned and the amount of hand labor have been excessive.

Nor is the American system without its faults. The Iowa or Illinois farmer fattens cattle that may have been reared in Montana or Texas. After the stock buyer, the commission man and the stock yard company have each taken his toll, the packer ships the carcasses back to the very region where the animals were fattened, when the stockman may purchase it of the local vender of meats. The facilities and perfection with which these many transactions are accomplished is one of the wonderful sights of our country. Nevertheless the producer of meat products may well consider whether some more economical system of distribution may not be devised.

SHIPMENTS: SOURCES OF INFORMATION

All railroad rates are now carefully supervised by the federal government and are open to the inspection of the public. Such information as is ordinarily needed may be obtained from the local station agent, who is always glad to be of service to patrons of his road. If information of a special character is required, it may be obtained by addressing the division freight agent of the railroad in the region under consideration. The name of this officer is to be found in the circulars and upon the posters of the railroad.

In addition to the freight facilities offered by any individual railroad, there are what are known as fast freight lines. These agencies enable through and prompt shipment from inland points in our own country to inland points in another. An individual railroad may operate in connection with several such agencies. A certain railroad, for example, is combined with nine fast freight lines. Freight agents of local roads in the principal towns usually represent the fast freight lines and are prepared to transact business.

In seaport cities there are firms styling themselves foreign freight contractors, outward freight agents, steamship agents, or ship brokers. These firms are prepared to quote prices on shipments to any part of the world on either regular or tramp ships. They will give freely to intending shippers full information concerning methods and conditions of shipment. There is nothing mysterious about the business of shipping farm products. The necessary details may be acquired by inquiry in the channels indicated and by a little study of the data, which will be cheerfully furnished.

RAILROAD RATES

A great many factors are involved in determining the rate which is charged for transporting different products. In a certain sense it is doubtless true that the rate charged is based upon what the traffic will bear. The purpose here, however, is to state some of the customs which exist rather than to discuss the philosophy or justice of them.

The rate may vary with the value of the product, without any regard to the cost of the haul. Suppose the cost of shipping a ten-gallon can of fresh milk between two points to be 32 cents, the cost of shipping a similar can of cream may be 50 cents. The cost of shipping a carload of hay is less than a carload of wheat.

In some instances, zones or belts have been recognized, the rate from all towns within each zone being the same for a given product. Certain railroads centering in New York recognize four zones for the shipment of milk and cream, as follows:

Zone A--First 40 miles.
Zone B--Between 40 and 100 miles.
Zone C--Between 100 and 190 miles.
Zone D--Beyond 190 miles.

It will be noticed that the size of these zones varies and may be the subject of adjustment between railroads and shippers.

While less understood by the public, railroads recognize zones or, more properly, groups of towns in making rates to them instead of from them, as in the instance above mentioned. It is possible to change the rate on a product to a given town by classifying it in another group. The rate on bran and other stock foods from central western points to certain towns in New York state has been the same as that charged to Boston, Mass., while other towns in New York not far removed have taken a lower rate.

Differential rates are recognized to be legitimate. Railroads are allowed to charge a less rate for wheat intended for export than that intended for local consumption. There has sometimes been a wide difference between the freight rate on wheat between Kansas City and Galveston, Texas, depending upon whether the wheat was to be exported or intended for domestic use.

In certain sections and for certain products the railroad rate varies with the season, because of difference in competition. The railroad rate between Chicago and New York on grain is higher while the navigation of the Great Lakes is suspended. As an illustration of the cheapness of transportation by water, it is stated that sometimes it is cheaper to ship wheat from Chicago to Buffalo by boat than to store it in a grain elevator for an equal period of time.

Products may sometimes be sent by baggage to greater advantage than by express, special arrangements for which are generally required.

FACILITIES FOR FREIGHT TRANSPORTATION

American railway facilities are, perhaps, unrivaled among the nations of the world, but the United States is still behind other nations in the matter of means of local transportation, in which good roads is only a part of the problem. In France, the so-called messagers are a common feature of local traffic. Thus in the Department of Touraine there are 246 towns each having from one to four messagers, who with their great two-wheel carts, each with single draft horse, make one or two trips to Tours each week. The messagers carry freight both ways precisely in the same capacity as railroads do. While the railroads are fairly abundant these local agencies continue to thrive because delivery can be made directly to the consignee and delivery at the exact time and place is more certain. The enormous loads conveyed in these two-wheel carts by one horse is an element in this system to which the good roads of France now contribute. In 1799, France had constructed 25,000 miles of roadway. Since that time, over 300,000 miles of roadway have been completed and about 30,000 miles of railway have been constructed—ten miles of roadway for each mile of steam railway. The good roads of France are of comparatively recent origin, contributing materially to the improvement in well-being which has taken place during the same period.

                                                                                                                                                                                                                                                                                                           

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