Gainesville daily sun. (Gainesville, Fla.) 190?-1938, 1908-08-20
RAILROAD PROBLEM
HALTS PROSPERITY
Present Situation Of Carriers
Most important Factor In
Business Recovery.
Manner IN Which Freight Rate Prob
lem Is Solved Will Decide Fate Of
Roads, Chicago Authority Says.

WHANNeF ~ eeUtNV ES~'40~ Et"~~ 49,
lem Is Solved Will Decide Fate Of
Roads, Chicago Authority Says.
Alfred H. MuIIlken, president Of Pet
kibone, Mulliken a. Co. Of Chicago, one
OF the best posted men In the country
on railroad topics, has made a public
statement in which he says:
Every man IN the United States who
Is interested in the return and main
tenance OF prosperity Is asked to con-
slider carefully the following facts.
Although the recent adversely came
when the prosperity OF the railroads.
was most pronounced II was due to
the attacks upon them. which com
PEELED the roads TO stop all expendi-
lures for Improvement. as this attack
upon their credit made II impossible
for them to sell bonds or obtain money.
The panic Of 1907 was caused by the
attack upon railway credit, which Gre
nted a fear In the minds OF the people
which led them to dietrust all securi-
ties. But, putting aside railroad his
tory. we are now faced BY condition.
not By the past
All Desire Prosperity.
what we al desire Is prosperity. We
cannot DO prosperous II any large I'm
Aerest among our people Is suffering
and depressed The credit Of an in-
diyidual or Of q corporation Is only Inn
proved by an increase IN their net
earnings. The railroad expenses have
Increased IN the one item Of labor alone
$i0O,000.OO0 ia the last twelve months.
They face this situation: Either reduce
wages, increase freight rates or 60
into the hands Of receivers and stop all
payments FOR interest and dividends.
THE roads have been forced by public
opinion and BY the administration TO
advance wages and by the same are
unable TO reduce them. They are there
fore compelled to face the other two
alternatives.
We know what would DO the effect Of
many roads going into the hands OF
receivers The only practicable alter
native, therefore, h to advance freight
rates throughout tho country.
Increases Not Felt BY Consumers.
This advance will eventually fall
upon the consumer, but II Will be 80
small that he will not notice II. For
instance, 10 per cent horizontal In
crease ia freight rates would hardly
DO known BY amy consumer. This In
crease on q suit OF clothes from New
York TO Chicago would be less than I
cent per suit, on pair OF shoes from
Boston to Chicago less than half cent
per pair. on derby hat from New
York TO Chicago less than one-thlrd OF
ID cent per hat. TO the railroads Il
would moan an increase OF $4,000, 900
10 $iO0O0o.000 In earnings per year
The proposed increase la freight
rates will not change any distributing
center. VIII make no difference In any
lime OF business 10 the people engaged
in Il. but II makes an enormous dif.
ference. not only 10 the steel Interest,
for example. bat 10 business generally,
II there II a demand for only 90 per
cent oe the steel producing capacity Of
the country
The Carriers as Buyers,
The railroads consume 80 per cent
of the Iron and steel manufactured IN
thia country. and the moment railroad
bnying ceased activity, IN the steel
mills diminished ana business gener
ally was ialpalred
The railways are the second largest
purchasers Of everything Ia the United
states. Seventy per cent ot their earn
ings arc Immediately distributed fol
labor ANA material Within Tho las
twelve mouths they have lncreaseS
their payments 20 their employees owe
siO0OoOO00 Does any one think tina
this Si0O.o00O00 h not benefit % 90
peoplc9
Dividends paid BY az the railroads \
tho United States 10 1907, tie mos
prosperous year, was a7a per cen
The average uividend per aonun pal'
by an railroads IN the past thirteel
years was less than 2A per cent pe
year
Our Reads Charge Lowest Rates.
Fnelrht rates are lower IN this cou'
trx than Ia any other, and tao seryig