New-York tribune., 1908-07-28
STEEL MEN FOR RISE.
Increase in Freight Rates, Says One,
Would Benefit Business.

It was learned semi-oficially yesterday that an
advance in freight rates by the railroads would
not be opposed by the country's great iron and
steel producers. An advance of 10 per cent would
edd many millions of dollars annually TO the ex-
penses of the iron and steel companies, but the
at the head of these great industries figure
that the additional outlay would be more than
made up by the profits on the heavier orders which
would be placed by the railroads.
The freight bills Of the United States Steel Cor
poration, for example. close to s1oo.oeo.ooo
year, that advance of 10 per cent would mean
added outlay of 100000 The railroads.
the other hand. have bought little steel for the
last year and any reasonable move which would
bring the railroads into the market heavy buy
of iron and steel would be heartily welcomed
by the producers.
In regard to the proposed advance in freight
rates representative of one OF the large steel
companies said:
The railroads are always the manstay Of the
steel business-as matter of fact, of the general
business Of the country. They are the great con-
Stunning channels and when they short Of
funds you can depend upon it that general bust
ness is tagging. Consumers would not feel slight
increase in freight rates. It would appear to some
a hardship first, but the results would be bene-
fetal IN the long run, It would increase the
profits of the producers.
IF the railroads started in next week to buy
rails liberal scale, you would recovery
in general business that would be startling They
cannot buy equipment unless they float bond issues
railroads can proftably float additional securities
A reduction in wages would be demoralzing and
the only thing TO do is to moderately increase
freight rates. This would help the railroads in
ways than It would prevent over
burden of fixed charges and therefore give addi-
tional security TO the stockholders well the
bondholders. It would also help to regulate money
conditions. There is always a. Tightening of money
when corporations seek to make loans on securities
THE railroads must keep on expanding If they,
wish to keep pace with the development of the
country. They cannot do It unless they secure
money to make extensions, buy equipment and
keep their roads up TO the highest degree of op-
Grating efficiency. An advance in freight rates
would not hurt the consumer and would do more TO
restore confidence and business credit than some
people imagine. The steel companies making
enter the market for steel earnings would soon be
doubled Under such conditions do you suppose
that we would object TO a reasonable advance In
freight rstes?'
W. A Garrett, president Of the Seaboard Air
Line has also come out in favor of freight rate
which will be fair to the railroads
]. c. stubbs. traffic director Of the Hartman
lines, who believes in advance IN freight rates,
says:
1T seems TO me that the action of some Of the
shipping organizations in trying to invoke the aid
of the Sherman act to prevent an increase In
freight rates Ill advised, unfair and vndictive
I have always been firm believer in conference
between the railroads and the shippers The traffic
officials of the railroads who carefully studied
the situation honestly believe that the shippers are
standing in their light in this particular in
stance We believe that the resultant benefit to
both the shippers and the railroads from ad-
vance in freight rates would be such that the in
crease in business would greatly exceed the cost
TO the shippers