The Washington herald., 1910-05-29
SAYS The DEALERS
ARE BENEFITED
IOakum Declares Consumer
Pays Too Much for Food.

In a recent interview on the high cost
OF living. B T. Yoakum declared that it
was not due 20 increased cost Of trans
portation. In part he said:
The cost OF food. coal. clothing. &c. has
advanced since 1888 an average Of A
per cent In other words il requires
NH to-day TO purchase the same goods
that 81 would purchase ten years ago.
The difference Of $40 on Sl.000 means a
great deal % a great many people
They must find a way TO increase their
income or decrease their cost of living.
Transportation has not contributed 10 the
Increased cost of living. as freight rates
have steadily been reduced; neither have
reductions IN freight rates benefited the
consumers.
Railroads Earn S2fO.OO0. 900 Less.
Through reductions I'm rates made by
The Interstate Commerce Commission.
State railroad commissions and Iegisla-
tive acts railroads earnings are now S2lO,-
100000 less annually than they would be If
the rates OF 1SgS were in effect. 1t has
been stated in public speeches that this
S2ioCOoOoo taken from the railroads was
that much gain 20 the public To con-
tradict this statement and show that the
consumer did not benefit by reductions
in rates II is only necessary for you
to compare your bills now and in past
years. You pay no less for your clothes.
your shoes. your hats. your household
furniture. your farming implements,
&c. on the other hand rates are only 20
-.ar Of
to 1899
This S2iOoO0OOO taken from the railroad
earnings went TO the dealers. who saved
that amount on the goods and com
modiues sold to consumers and who
charged you Just as much as or more
than you paid for the same goods be-
fore.
One Of the subjects upon which the poll
tician creates prejudice against the rail-
roads IS the so-colled burden placed upon
tho people through the overissuance Of
securities. Two hundred and forty mil
lion dollars a year is I per cent on So
OOO,OoO,OOo, which IS 43 per cent of the total
capitalization Of the railroads Of the
United States.
Consumer Pays the Dealer.
This extra profit Of S2l0.O0O00O a year to
the dealers Is just as great burden as If
paid for legitimate increase Of capitaliza-
tion used in new construction and i'm
provement Of train service TO handle your
business. only it is paid out in g different
form. The thing the railroad and the
consumer are jointly Interested in Is the
fact that under present political methods
Of doing business the railroad stands the
loss Of its revenue and the consumer
does not get it. Recent legislation has
been in the interest OF the compare tfvelv
few Of the country's population VINO live
on the profits between the producer and
the consumer. and all they get through
freight reductions is that much added TO
their profits.
I believe I'm railroad legislation. 1 am
opposed 70 excessive capitalization. I am
opposed also to legislation that places
future construction in the hands of ex-
istiDg companies, which viii be against
the best welfare Of our agricultural inter
eSts, handicap every farmer who has not
convenient transportation facilities. and
continue Idle the many million acres of
good land remote from railroads.
Legislative investigating committees
viii not solve the question Of cost of uv-
ing. Such committees are political. and
politics viii influence their deliberations
The cost Of living will never be too great
In this country when products can go
direct from the railroad station 10 the
consumer at near first cost.