The sun., 1908-05-20
The Increase in Freight Rates.


As a protest against contemplated
increase in railway freight rates the Illi-
nois Manufacturers Association declares
that "the railroads propose to tax every
man, woman and child In the country
SITS q head. The increase will raise
the present gross freight revenue Of the
roads in the official classification terri
tory from approximately 81 900, ,000, 900
to si,140, 900, ,00o There are 100000
people I'M the country, so each one will
be called on to contribute SITS per an
mum to the Golfers Of the railroad cdpi-
panies." }
For the sake OF the argument let us
assume fixed intention on the part Of
these lines to increase their rates and
their revenues as reported. We note
one or two mistakes in the deductions
OF this association. Our population In
nearer 81 ,OOO, 900 than 80, 900 900, and this
would reduce the per capita levy from
sl.75 to S1e1. A further reduction must
be made for millions of tons of grain,
cattle, provisions, foodstufs, coal, cop
per, iron and steel products and various
other commodities hauled for export.
The freight charges on this merchandise
do not fall on the American consumers.
There is a third and even more i'm
portant point Of consideration. This
SlA0, 900 900 increase in revenue is not
mere fettening Of the Golfers of the rail-
ways. tits not a dividend paying scheme.
The money Is wanted and Is needed for
the maintenance and improvement of
service and equipment. It 10 for the
payment Of labor and the products OF
labor. The estimated sum 10 the equiv
alent Of SO week to 2s0, 900 wage earn
ers now out Of employment. We assume
that to be the purpose to which all or
at least the greater part OF the oontri-
button would be devoted. II this is the
fact the levy appears in the light OF
defensibls distribution. Of an economic
burden and not as robbery Of the pub
lie by predatory wealth.
If the country is to prosper, the stand
ard of transportation facilities must be
at least maintained. It should show con-
slant improvement. Neither improve
ment nor maintenance is possible il
revenue is inadequate. The present de-
crease in revenues can result only in
impaired service; and IL service is i'm
paired the public suffers. The loss to
the country through decreased efficiency
may easily exceed the net financial bur-
den imposed by rate increase. We
make no argument for such increase
in rates, but we assume that IL it shall
be made the railways will be able to
show its cause and its need 10 the salts
faction Of all reasonable people. There
is limit to safe economy in railway
operation, and it may be that even 80
large sum as $4,000, 900 is not too
much for the country to pay to keep it's
railways from going beyond that limit
If the contemplated increase Is neces-
sary for the maintenance Of the standard
Of efficiency, for the employment of
train crews, track crews and other rail-
way servants, for hands in rail mills
and in car shops, and for mechanics and
laborers in other lines Of industry, it 10
even possible that there would be profit
rather than loss to the country in a rate
increase until restored prosperity per-
mits q reduction. 1t is unwise and un i
safe to jump to conclusions that the
country is soon to be m ade the helpless
victim of mere rapacity.