The times. [volume] (Washington [D.C.]) 1897-1901, 1900-06-15
THE INDUSTRIAL ENQUIRY
Freight Rates and Labor Problems
the Topics Discussed
Two Witnesses Appear Before the
Commission-M. II. Bacon. of Nichi-
gan. Speaks of Excessive Charges
by Transportation Companies-
j. w. Coffin on Strikes and Wages.

- w. Colin on strikes ana Wages.
NJ. R. Bacon. of the Michigan Alkali
Company, of WyanGotte, Mich, went on
the stand before the Industrial Commits
sion yesterday afternoon to testify on the
subject of excessive freight charges made
by the railroad companies on raw material
shipped to manufacturing plants. Mr..
Bacon started out by telling of the or
ganization Of his company, stating that it
was In no sense trust, but that it
might be called a family corporation, as
not one dollar of the stock was owned by
anyone except members of the family
of John B. Ford, the founder of the COM
pany.
THE manufacture of our principal prod
ucts,'' he said, is based on salt. of which
We have strata averaging over three
hundred feet in thickness under our
property. Labor enters largely into the
cost of manufacture. We employ about
two thousand men, and, counting the raw
material. which exceeds fifteen hundred
tons daily, it would be safe to say that
over SO per cent of the cost would be for
labor. We pay good wages to the laborer,
the common laborer at our quarry getting
$3.50 per day, and we pay all employees in
cash. at regular intervals. We consume,
daily. seven hundred tons of coal, enc
hundred tons of coke, and seven hundred
tons Of limestone, and, during the year,
many hundred tons of ammonia; and send
forward. every day in the year, five hum
dred tons of finished products. consisting
of carbonate of soda Commonly known
as soda ASH, bicarbonate of soda, caustic
soda, and five hundred barrels Of Portland
cement"
Just what carbonate of soda, bicarbonate
of soda. and caustic soda consisted of.
I'VE ship in car lots he said, and
to the full capacity of the cars, and our
products are pretty well distributed over
the United States, except some parts Of
the West and South, where the freghts
are against US.
The transportation problem is one OF
the biggest problems now confronting the
American people, and it is growing in
magnitude daily, and the quicker Con-
gress grapples with it the better for the
people. and the better for the railroads
themselves.
No Reason for an Advance.
There was no good reason for the re-
cent raise in freight rates. The dividends
earned by the railroads in 1898 were
greater than were ever earned in the
history of any country. So, 1888 must have
been an exceedingly prosperous year for
the railroads. Yet We find that for the
year ending June 30, 1898, the gross earn
ings exceeded the previous fiscal year by
$59, 921, 1S6. the total gross earnings being
81, 307. 253, 4Si. When you consider that 1t
is estimated by the railroads themselves
that more than so per cent of an lines
income is derived from freights, you viii
readily conclude that there was no neces-
sity for the railroads TO raise their freight
rates this year.
while on this subject of freight mat
tiers, 1t may not be out OF order to give
you few words In regard to the freight
on our fuel supply. To burn our 200 tons
of limestone daily we must burn 100 tons
OF coke. To keep our machinery running
we must burn 200 tons of coal each and
every day throughout the year. The freight
rate on our coke has been raised 80 cents
per ton above last years rates. This is
SIS per day on our 100 tons daily supply,
or, in other words. We will have to pay
320.075 more freight on coke alone this
year than We did last year or any previous
year. What do you think of that?
IAN advance of s20,075 on one years
supply of coke alone.
In answer to our protest on this raise
the Norfolk and Western Railroad says:
The advance in our rates over last years
is 55 cents. do not know what has been
the advance in the oven price of coke to
the Alkali Company, but venture TO say
that II is nearly, il not quite, three times
S. cents. It would seem, therefore, that
At to4 L. :,
coke people than to the railroad company.
Il suppose that this answer is based on
the theory that if you find man that
has been robbed of everything but his
clothes you must pitch in and take the |
Clothing. We have also heard that the |
freight rates on coal would be raised. In |
this connection / want to call your atten-
ton to a statement of Mr.. A. L. Fuller, !
Of the Anthracite Coal Operators Asso-
citation. to wit:
A Binding Agreement.
Railroads do not sign written agree |
ments when they enter into pool to con-
troll certain product. but there is an
agreement between the roads of the an |
thracite coal district of Pennsylvania that |
Is just as binding as any agreement ever
written. They are combined not only to |
control the rates on coal. but also to con- |
troll the price Of coal, and they will permit |
only certain amount TO be hauled at |
any rate. in order to keep the supply |
down and the price up.
There has never been time in the |
history OF the trade, no matter how great |
the demand, when the mines were allowed
to produce all they could. The roads do |
not tell us that they cannot furnish the |
cars; they simply say that they will not, |
and II one appealed to the law he would |