TRANSPORTATION A LARGE ITEM IN COST OF CEMENT While the increases in freight rates are a matter of common knowledge, it is not generally appreciated that these charges on cement from point of production to point of use have increased from 1009, to 175% or more above the rates in effect in 1914. These increases also add greatly to the cost of the 134 tons of coal and raw materials required in the manufacture of a ton of cement. The effect of freight rates on the cost of transporting cement from mill to destination is shown in the following table: Freight Rate Per Barrel of Cement From Plant at Universal (near Pittsburgh) Pa. To Pittsburgh To Cleveland @r aq ¢n of January 1, 1916 January 1, 1918 July 1, 1918. Januarv 1. 1921. 2 3 v J TRANSPORTATION THE NECK OF THE BOTTLE The traffic congestion in 1920, led some people to believe that there would not be enough cement to supply the needs of a large construction program. This was a mistaken impression based on past difficulties. The trouble during the period of heavy demand in 1920, was not lack of cement manufacturing capacity, but inability on the part of manu- ‘acturers to keep their plants operating at capacity. Cur- tailment of cement production was caused by strikes, scarcity of labor at cement plants, strikes in other lines of industry on which the cement plants are dependent, such as strikes in the gypsum plants and coal mines, and the general lack of transportation facilities including embargoes on the railroads. The ratio of cement production to manu- facturing capacity for the entire year 1919, was only about 55%, and for 1920, less than 709%. The capacity of all cement mills in the United States is 560 million sacks or more annually. The most cement ever produced in a vear