DEPARTMENT OF COMMERCE
BUREAU OF THE CENSUS
SAM. L. ROGERS, Director
STUDY OF CARTAGE COSTS
IN THE
CITY OF WASHINGTON
V
prepared by
EUGENE F. HARTLEY
EXPERT CHIEF OF DIVISION
BUREAU OF THE CENSUS
washington
government printing office
1917
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OF THIS PUBLICATION MAY BE PROCURED FROM
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INTRODUCTION.
DEPARTMENT OF COMMERCE,
Office of the Secretary,
Washington, April 25, 1917.
The study which follows should not be understood as a final and
accurate census, hut rather should be taken as a preliminary inquiry
into a subject of large and general importance, affecting every man
and woman in the United States. I have felt increasingly for some
years past that in giving so large an amount of attention to the matter
of freight rates we were dealing with* the obvious and too much
neglecting the important. This does not mean, of course, that the
matter of freight rates is even relatively unimportant. Far from it;
hut it does mean that the factors in the cost of distribution which we
may group into the word "cartage" are more costly and more impor¬
tant than railway freight rates, and that this subject has almost been
ignored in our public thought. Stabs have been made at it here and
there, often as incidents in other movements, with consequent reaction
upon cartage costs. Such is the case with the good-roads movement,
with the coming of the automobile truck, and other things which will
occur to any thoughtful man. Yet no one seems to have grasped the.
tremendous item of cartage cost as a whole, to have estimated it at
its true importance, or to have attempted so much as to study it
thoroughly on a large scale to find how serious a problem it is. It is
one of our largest wastes, but seems to go almost unheeded l}y
students of public matters.
The study will show that in the city of Washington cartage is a
good deal larger item of cost than freight rates. This is true, although,
as the statement says, no attempt has been made therein to include
the cartage costs incident to the delivery of food supplies and other
commodities brought into the local market by the farmer and truck¬
man from the surrounding country, nor indeed does the statement
cover any form of cartage from the country into the city, and vice
versa. It should be remembered also that the city of Washington
is not an industrial town, and therefore the element of cartage
involved in factory operations is almost wholly absent. There are
few if any large mercantile warehouses, and the cartage cost involved
in their operation is also lacking. Neither does the study include
the cartage costs of general storage warehouses or household moving.
94589—17 ( 3)
4
The estimates made are conservative, and it is more than probable
that if the census were ^intensively conducted into all the phases of
cartage activity in Washington the figures would be increased. The
study is submitted in the thought that it may arouse questioning
and may lead to action which will in time definitely determine what
the size and nature of the problem presented by cartage costs is and
show how best to deal with it.
William C. Redfield,
Secretary of Commerce.
STUDY OF CARTAGE COSTS IN THE CITY OF WASHINGTON.
DEPARTMENT OF COMMERCE,
Bureau of the Census,
Washington, April 21, 1917.
Sir: I submit herewith the results of the recent inquiry in regard
to city cartage in Washington, D. C., made in compliance with your
instructions, under the direction of Mr. Eugene F. Hartley, expert
chief of division, of this office.
One of the most potent factors in the development and growth of
a community or a nation, and in the bearing it has upon the daily
life of the individual, is that of transportation. The problem of
commodity transportation and distribution is one which, like most
other problems of civilization, tends to increase in complexity with
the social and industrial evolution of a commonwealth. The pioneer
of a century ago produced nearly everything required to supply his
simple needs—food, clothing, building materials, and fuel. In many
cases he did his own blacksmithing, and sometimes even the shoe-
making for his family as well. But as settlements sprang up near
him, as villages grew into towns and towns into cities, hq and his
descendants came more and more to specialize on a few products, of
which their output was much greater than their consumption, while
of many commodities required to meet their increasing needs they
produced none. Thus the matter of transportation and distribution
has become of greater and greater importance, until, at the present
time all industrial activities are so closely linked up with it that the
suspension of traffic for a single day would result in serious inconven¬
ience to many, whilé its cessation for any considerable time would be
tantamount to a national disaster.
A comparison of the proportions which the population residing in
towns and cities of 8,000 and over represented of the total for the
United States in 1810 and in 1910 shows strikingly the extent to
which concentration in urban communities has taken place during
the period of a century. In the earlier year only 4.9 per cent of the
country's inhabitants lived in places of this size, whereas in the later
year the corresponding percentage had increased to 38.8, nearly
two-fifths of the total. Still more impressive is the change that has
taken place during the period of only 30 years, approximately a
generation. Between 1880 and 1910 the proportion which the urban
(5)
6
population of the United States—that is, the population in places of
2,500 or more—represented of the total increased from 29.5 per cent
to 46.3 per cent. (The corresponding percentages for years prior to
1880 have not been calculated by the Census Bureau.) The urban
population is everywhere growing at the expense of the rural. The
demand for all classes of commodities, covering a far greater range
than the demand of a century ago—for the luxuries of yesterday are
the necessities of to-day—is continually increasing, and with it the
problem of- collecting them from producers, transporting them to
centers of population, and distributing them to individual consumers.
In the study of municipal marketing alone much time and thought
have been expended during recent years by commissions appointed by
various cities for the purpose of devising methods of eliminating the
inefficiency and waste which prevail to so great an extent in the dis¬
tribution of foodstuffs,from retailer to consumer, and which, in view
of the rapid growth in urban population, constitute a factor of increas¬
ing importance in its relation to the transportation problem as a
whole. It has been pointed out by these commissions that much
remains to be done—in fact, in many cities very little has yet been
accomplished—in providing adequate facilities for the distribution
of food supplies and in bringing producer and consumer into closer
touch. The following table, from statistics compiled by the Division
of Statistics of Cities of the Census Bureau, throws some light on
the lack of consideration.given to markets by cities of over 30,000
inhabitants :
YEAR.
1906.
1910.
1915,
Total number of
cities of 30,000
population and
over.
158
184
204
NUMBER OF CITIES IN
"WHICH EX-
FEND1TURES FOR MARKETS AND
PUBLIC SCALES "WERE-
Less than
SI,000 to
More than
$1,000:
$10,000.
$10,000.
104
42
12
123
47
14
131
59
14
Thus it will be seen that in 1906 only about one-third of the cities
of 30,000 population and over expended as much as $1,000 on mar¬
kets and public scales, and that in 1910 and 1915 the proportion
had not materially changed.
Much careful thought has been given to the encouragement of
farmers' markets as distinguished from those maintained by pro¬
fessional retailers and commission men. In reference to this one
phase of distribution alone, it has been pointed out that more facili¬
ties are provided for the distribution of produce shipped into the
cities than for that brought in locally. In other words, the expan-
7
sion of facilities for handling local produce has not kept pace with
that of facilities for handling commodities brought in by freight.
A different phase of the problem is set forth in a study of the dis¬
tribution of food supplies, made in 1912 by Hon. Cyrus C. Miller,
then president of the Borough of Bronx, in which this example is
cited: "Fish are brought im every day from New England to the
freight terminal on the Harlem River, and because of the lack of
marketing facilities must be loaded on a barge and taken down to
the fish market to be sold there and be carted back uptown."
A comprehensive study of the entire field of transportation and
distribution would cover such matters as rail and water routes, public
highways, the location of manufacturing establishments with refer¬
ence to the markets which they serve, etc. The results of such a
study would be of great value in many ways, but no facilities are
available for making it at this time. A highly important phase of
the general subject, however, and one upon which practically no
light of a statistical character has hitherto been thrown, is that of
what may be'termed ''city cartage," that is, the local distribution,
from retailer to consumer, of merchandise of all classes; and it is to
this phase that the present investigation relates.
For several reasons it was deemed best to limit the inquiry to Wash¬
ington, D. C. Chief among these is the fact that Washington is not
an industrial community and therefore does a minimum of wholesale
business, and, proportionally to the total, a maximum of retail-
business. In fact, no other city of its size in the United States would
provide so suitable a field for an initial investigation of this nature.
It may be mentioned here that in the collection of these statistics
considerable difficulty was encountered by reason of'the reluctance
shown by certain dealers in regard to supplying any data pertaining
to their business. In the cases of some there was a feeling that
figures given by them might in some manner become known to
unauthorized persons, or that increased taxation might be based
upon them. Others, and especially the smaller dealers, who as a rule
had never before been called upon to furnish any data of this character
to governmental agencies, were wholly unused to the idea of doing so,
were even resentful that such a request should be'made of them, and
refused point-blank to comply with it. It is obvious, therefore, that
before any general and complete investigation along this line could
be made in any city or in any group of cities, it would be necessary
to conduct a campaign of education- or to secure the enactment of
legislation to compel the giving of the information sought.
The data obtained by this inquiry—which, as already stated, related
to Washington, D. C., only—pertain to the total delivery costs of the
establishments canvassed, and include in some cases the cost of
8
wholesale as well as that of retail delivery. In the main, however,
the figures given represent the cost of retail delivery.
The following table summarizes the results of the inquiry:
Cost of Delivery—All Establishments Canvassed: 1916.
CLASS OF ESTABLISHMENTS OR COMMODITIES.
Aggregate... -,
Merchandise, not otherwise specified
Department stores, hatters and furriers, and shoe
dealers
Establishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost
Furniture and carpets
Establishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost
Hardware
Establishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost
Food products
Meat products (wholesale only)
Establishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost
Bakery products
Establishment reporting maximum percentage
for del ¡very cost
Establishment reporting minimum percentage
for delivery cost
Dairy products
Êstablishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost
Groceries and meats
Establishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost 1
Ice cream
Establishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost
Seasonal commodities
Coal and wood
Establishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost
Ice
Number of
establish¬
ments re¬
porting.
COST OF DELIVERY.
Gross sales.
Amount.
Per cent of
gross sales.
128
832,826,402
82,047,781
6.2
20
13,686,095
244,803
1.8
7
11,272,841
174,311
1.5
1
4,083,000
71,123
1.7
1
501,000
3,307
0.7
8
1,384,183
39,443
2.8
1
216,099
9,441
4.4
1
35,040
754
2.2
5
1,029,071
31,049
3.0
1
145,982
6,270
4.3
I
390,645
9,071
2.3
69
12,620,353
930,291
7.4
8
•
5,611,431
61,901
1.1
1
} 2
707,194
/ 350,122
\ 967,599
13,131
2,752
8,039
1.9
} 0.8
14
2,242,153
444,560
19.8
1
450,000
117,407
26.1
1
21,840
2,066
9.5
4
1,549,920
187,109
12.1
1
150,000
19,500
13.0
1
442,642
50,132
11.3
39
2,307,856
101,399
4.4
1
18,500
1,517
8.2
1
48,000
960
2.0
4.
908,993
135,322
14.9
1
126,041
50,416
40.0
1
749,902
80,935
10.8
8
2,299,791
459,6-10
20.0
7
1,940,211
295,840
15.2
1
860,000
166,000
19.3
1
209,118
16,871
8.1
1
359,580
163,800
45.6
9
Cost ok Delivery—All Establishments Canvassed: 1916—Continued.
Number of
establish¬
ments re¬
porting.
COST OF DELIVERY.
Gross sales.
Amount.
Per cent of
gross sales.
12
81,561,369
8159,769
10.2
4
410,572
81,849
19.9
1
251,519
67,821
27.0
1
100,425
5,537
5.5
8
1,150,797
77,920
6.8
1
279,442
34,253
12.3
1
239,441
8,482
3.5
8
1,413,366
152,800
10.8
4
1,206,057
110,920
9.2
1
130,816
18,567
14.2
1
218,088
16,276
7.5
4
207,409
41,880
20.2
1
23,652
5,853
24.7
1
77,937
12,331
15.8
6
477,237
72,800
15.3
1
82,803
16,771
20.3
1
73,584
7,600
10.3
5
768,191
27,678
3.6
1
19,000
3,800
20.0
1
406,194
7,078
1.7
CLASS OF ESTABLISHMENTS OB COMMODITIES.
Building materials.
Brick.
Establishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost ,
Lumber and planing-mill products.
Establishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost
Brewers and bottlers.
Breweries
Establishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost
Bottlers of soft drinks
Establishment reporting maximum percentage
for delivery cost
Establishment reporting minimum percentage
for delivery cost
Laundries.
Establishment reporting maximum percentage for
: delivery cost
Establishment reporting minimum percentage for
delivery cost
Miscellaneous L
Establishment reporting maximum percentage for
delivery cost
Establishment reporting minimum percentage for
delivery cost
i This group comprises 2 establishments dealing in plumbing and heating supplies; 1 establishment
dealing in paints, oil, and glass; and 2 florists' establishments. These have been combined in order to
avoid disclosing the amount of business done by individual establishments.
Of the 5,000 or more retailers shown by the classified business
directory of Washington, 120 carefully selected dealers, representing
17 lines of retail business (some of whom did a wholesale business
also), together with 8 wholesalers of meat products, were canvassed.
For the entire number of establishments, the average delivery cost
was equal to 6.2 per cent of the total gross sales.
Among the several classes of commodities sold at retail, the cor¬
responding percentages ranged from 45 for ice to 1.5 for department-
store merchandise. The lowest percentage shown for any class of
commodities covered by the table was 1.1 for wholesale meat prod¬
ucts.
The classes of commodities showing the highest five average per¬
centages for delivery costs are: Ice, 45 per cent; bottled soft drinks,
20.2 per cent; brick, 19.9 per cent; bakery products, 19.8 per cent;
10
and laundered goods, 15,3 per cent. The classes for which the lowest
three averages (exclusive of that for wholesale meat products) appear
are: Department-store merchandise, 1.5 per cent; furniture and car¬
pets, 2.8 per cent; and hardware, 3 per cent.
Among the individual establishments, the proportions which de¬
livery cost represented of total gross sales ranged from six-tenths of
1 per cent in the case of a shoe dealer to 45 per cent in the case of
the ice dealer.»
The subject of milk delivery deserves special mention. Of the price
paid for this commodity by the consumer, it is probably true that
about 40 per cent represents profit and the cost of handling and dis¬
tribution. Of this 40 per Cent, the average cost of distribution or
delivery would be from one-fourth to three-tenths, that is, from 10
to 12 per cent of the selling price. That a part of this cost is charge¬
able to the demand of the consumer for special service is the opinion
of a prominent milk dealer, who states that, in addition to his three
regular deliveries, he is forced to maintain three or more special
deliveries, under penalty of losing his patrons.
Again, in certain sections milk must be delivered at the rear of some
houses and at the front of others on the same street, thus necessi¬
tating long detours on the part of the driver or the operation of two
wagons, one for front and one for rear delivery.
The effect of these factors on the cost of milk delivery is in some
cases important. There is, nevertheless, ¿ considerable waste in the
delivery of this article of food, due to the large amount of duplica¬
tion and interweaving of routes; and the opportunity for the intro¬
duction of economies through the combination and orderly arrange¬
ment of routes is probably greater than is afforded in connection with
the delivery of any other important foodstuff. For this reason the
establishment of central milk-supply stations has lately been under
consideration in a number of municipalities.
The following table gives statistics as to delivery costs for certains
groups of establishments.^ dealing in groceries and meats, the grouping
being based on amount of business done:
Cost op Delivery—Groceries and Meats: 1916.
GROSS SATES PER ESTABLISHMENT.
Total
Under «20,000....
*20,000 to 830,000.
«30,000 to «40,000.
«40,000 to «50,000.
«50,000 to «100,000
«100,000 and over.
Number of
establish¬
ments re¬
porting.
39
7
4
10
8
Gross sales.
$2,307,856
112,500
93,903
332,656
343,115
392,762
1,032,920
COST OF DELIVERY.
Amount.
«101,399
6,413
4,370
15,302
15,336
16,241
43,737
Per cent
of gross
sales.
4.4
5.7
4.7
4.6
4.5
4.1
4.2
11
It will be noted that for the group of establishments having gross
sales amounting to less than $20,000 the cost of delivery was
proportionally somewhat higher than for the rest, and that, in
general, the cost of delivery tends to decrease, relatively to the
amount of business done, as the size of the establishment increases.
The following table presents, for bakeries, statistics similar to
those given in the- preceding table for establishments dealing in
groceries and meats:
Cost of Delivery—Bakeries: 1916.
GROSS SALES PER ESTABLISHMENT.
Total
Under $20,000
$20,000 to $42,000..
$42,000 to $00,000..
$190,000 to $230,000
$4ó0,000 and over..
Num¬
ber of
estab¬
lish¬
ments
report¬
ing.
14
Gross sales.
COST OF DELIVERY.
Amount.
$2,242,153 I $444,560
Per
cent of
gross
sales.
19.8
40,827
82,640
144,240
626,228
1,348,218
6,164
12,054
24,864
131,374
270,104
15. 1
14.6
17.2
21.0
20.0
These figures indicate a tendency opposite to that shown in the
case of grocers and meat dealers; that is, the cost of delivery is
greater, relatively to the amount of business done, for the large es¬
tablishments than for the small ones. The comparatively low cost
shown for the smaller establishments is due in part to the fact that
the proportion of the total output which is sold over the counter is
greater for these establishments than for the larger ones. In fact
some of the larger establishments sell no goods whatever over the
counter.
ESTIMATE OF TOTAL CARTAGE COSTS FOR THE CITY OF WASHINGTON.
Hitherto in the consideration of cartage .as a factor in the cost of
commodities to the consumer, the discussion has related solely to
that element which has been termed " distributing cartage." A
number of other elements, one of which is probably as important as
distributing cartage,, must be taken into account in arriving at the
cartage costs borne by a community. For want of better nomen¬
clature these elements may be designated as follows: "Receiving or
inward cartage," "shipping cartage," "general cartage," freight,"
and "Government cartage."
1. Receiving or inward cartage.—This form of cartage comprises
the haulage or drayage from the freight or other terminal to the
mercantile establishment. Although in the case of a number of
establishments from which inquiry was made- it was found that
12
separate accounts for this form of cartage were not available, suffi¬
cient information lias been obtained upon which to base an estimate
that this element would be equal to about 5 per cent of the distrib¬
uting cost for the city of Washington.
2. Shipping costs.—This covers charges on outbound express,
freight, and parcel-post shipments made by retail and wholesale
establishments. In the case of Washington this element is small as
compared with distributing cartage, probably amounting to less than
2 per cent of the latter.
3. General cartage.—This element includes the transportation and
delivery of goods by express companies; delivery by local express,
transfer, and storage companies; and heavy hauling and drayage
done by general contractors and others.
4. Freight.—This embraces all charges by railroads and steamboat
lines on inbound freight. Next to the cartage costs of retail distri¬
bution, these charges probably add the greatest amount to the prices
of retailed commodities. The aggregate rail-freight charges paid by
the city of Washington during the calendar year 1916 amounted to
approximately $6,340,000, of which sum 86 per cent, or approxi¬
mately $5,450,000, represented inbound freight. The report of the
Census Bureau on transportation by water for the year 1906, the
latest for which figures are available, shows receipts of approximately
600,000 net tons of inward water freight at the port of Washington.
Assuming an increase of 20 per cent during the 10 years from 1906
to 1916 (the population of Washington increased by a little less than
19 per cent during the decade 1900-1910), the inbound water freight
in 1916 would amount to approximately 720,000 tons, which, on a
basis of an estimated average rate of $2.50 per ton,1 would represent
approximately $1,800,000. The combined inbound rail and water
freight charges would thus amount to about $7,250,000.
5. Government cartage.—The sum total of cartage costs for Wash¬
ington would not be complete unless the drayage done by Govern¬
ment-owned vehicles—which, of course, is in great measure peculiar
to this city alone—were taken into consideration. In the 10 execu¬
tive departments and about the same number of independent offices
and commissions, there are in use 110 motor trucks and horse-drawn
vehicles, constantly in service and manned by a considerably greater
number of employees.
An estimate covering the foregoing items not only possesses much
general interest but tends to bring home to the mind of the average
member of the community some realization, of the extent to which
transportation charges enter into the cost of the commodities he
purchases. Although the scope of the investigation was not broad
1 From records on file in the United States Engineer's Office.
13
enough to permit the collection of sufficient data, on which to base
an authoritative statement, nevertheless the information that has
been compiled indicates in a general way the importance of the
freight, express, and cartage elements in the cost of living.
jEstimated total freight, express, and cartage cost—Washington, D. C.: 1916.
Distributing cartage—retail and wholesale establishments ,.. $6,150,000
Receiving cartage—retail and wholesale establishments 300,000
General cartage:
Express and baggage ^... $800,000
Cartage contractors . 750,000
1,550, 000
Shipping cartage (outbound), retail and wholesale establishments 100,000
Government cartage , 200,000
Total cartage 8, 300, 000
Inbound freight:
Rail $5,450,000
Water..... 1,800,000
7,250,000
Total freight, express, and cartage charges for city of Washington.. 15, 550,000
Although, as already explained, data were secured for only 128
of the 5,000 or more wholesale and retail establishments in Washing¬
ton, these concerns represent a far greater proportion of the total
business done than of the total number of establishments. On the
basis of the estimated purchasing power of the community, it is
believed that the total gross sales of these 128 establishments repre¬
sent approximately one-third of the aggregate amount of wholesale
and retail business done in the city of Washington. This ratio,
therefore, has been employed in estimating the total distributing-
cartage cost.
In arriving at this estimate no attempt has been made to include
cartage costs incident to the delivery of food supplies and other com¬
modities brought into the market by farmers and truckmen from the
surrounding country. This factor is not small, but for manifest
reasons it was impossible to secure any data pertaining to it.
At the time the last census was taken, hT 1910, the population of
the city of Washington numbered about 331,000, comprising over
71,000 families (according to the census classification, which approx¬
imately, although not precisely, represents the natural family) ; and
the increase which is estimated to have taken place since that year
brings the total population and the total number of families up to
approximately 364,000 and 79,000, respectively, in 1916, The
estimated total transportation and cartage costs applying to com¬
modities for public consumption in Washington, as shown in the
14
above table, would be $15,250,000 (deducting the sum of the two
items, "Shipping cartage (outbound)" and "Government cartage"
from the total). This represents approximately $40 for each indi¬
vidual, or $190 for each family.
Respectfully submitted.
Sam. L. Rogers,
Director of the Census.
To Hon. William C. Redfield,
Secretary of Commerce.
O