Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-07-30

sufficiently high to force commerce by
rail.
THAT is the reason why we must
figure on rates from foreign countries
in foreign ships upon the basis of water
rates in foreign bottoms as determin-
ing our rail rates. These rates are very
low as compared with our water rates
or rail rates.
For instance, the rates on grain
from New York to Liverpool, 5000 miles,
are 81 per ton and from Seattle and
San Francisco to Liverpool p en lo'ooo
miles. the rate per ton is $3.50.
1.-THE average railroad rates from
New York, Chicago, Missouri river and
common points to San Francisco ana
Los Angeles and other terminal points
averages $26 per ton.
Want of Vessels
"The average rates in foreign bot
toms for a distance of 10000 miles, say
from New York around the Horn to
Seattle. would be about $3.50 per ton,
but for the want of vessels to do
legitimate coastwise trade at indepen-
dent prices there moves in and out OF
California from and to the east some
thing over 100000 tons of non-perlsh-
able freight year upon which we pay
about $26 per ton which ought TO move
by water for $3.50 per ton.
"During the last ten years, or from
1898 to 1908, the railroads nave IN
creased their net incomes from $780,
DOC. 900 to over $1,000, 100000 per year.
and the net income per mile of rail-
road from less than $2500 per mile to
about $4,000 per mile.
1.-THE total balance of trade in favor
of the United States with foreign coun-
tries, plus he gross gold production
of the United States and territories and
Alaska, plus the gross silver product,
does not come with $200,000,000 of rep
resenting the annual net income of the
railroads.
Wealth of Railroads
"The value of the railroads of the
United States, as shown by reports or
various commissions, is not over $4,000
a mile, or a total value of about $780,
O00. 900, representing about one-six-
tenths of the total wealth Of the United
States.
"The government census reports
since 1870 show that the average in
crease of wealth of the people of the
United States has been less than $40
per capital per year, while the rail-
roads. with one-sixteenth of the prop
erty. have a net income of over $l2 per
capita per year for the entire popula-
ton, which is 60 per cent of the average
increase Oh W6dllil dSS0l 0AAA8 ~ PCP0
lation.
"The policy of the Republican party
is to permanently fix the capitalization
of the railroads upon the present basis
of stocks and bonds, the result OF
which would permanently fix upon the
American people tax of over billion
dollars year.
Conceal True Basis
'"The inquiry has often been made
before the interstate commerce COM
mission and in hearings before courts
as to what was the basis for fixing
railroad rates, but the railroad trafhc
men have always concealed the true
basis which is here shown, and 1t has
often been wondered why the railroads
have habitually opposed reduction
of the tariff upon trust-made goods,
but the reason is obvious when 1t APP
pears that the tariff on imports, plus
freight from foreign countries, likes
the transcontinental rates in the
United States.
There is nothing in the laws of the
United states limiting the prices which
railroads may charge and fix for trans
portation, and we may now cease to
wonder why, having power to advance
rates without limitation, they have not
increased the rates beyond $26 per ton
for the average haul between Atlantic
or lake ports and Pacific ports.
Secrets of Classification
1.-THE railroads classify their freight
rates arbitrarily by commodities, re-
CARELESS of the value of the goods or
risk, because the United States import
tariff Classics the import duties sep
arately upon each commodity.
1.-THE railroad rate from New York
and Chicago to the Pacific coast Is $15
per ton on steel and structural iron In
stead of $40 per ton because the import
duty will average $40 per ton and water
transportation from Europe will not
exceed IS per ton, or a total OF $l5
per ton.
1.-THE American merchant marine has