The Norfolk weekly news-journal., 1910-08-05
NEW LIGHT ON RATES.
Letter from Chicago Iron House to
Auent of Railroad.

Letter from NnlCduO 'O'' ''NNS~
Agent of Railroad.
Washington, July 80. - Government
officials have uearthed a live wire In
the matter of the freight rate IN
creases i'm official classification terri
tory. This was Il copy OF letter sent
a purchasing agent of one of the rail-
roads by large Chicago manufactures
of malleable iron. The names of both
PARTIES to the correspondence have
been kept secret.
Marked attention has been paid this
letter because it is about the first sent
President Taft by an individual ship
per which expresses a disapproval OF
the advance in freight rates. Hereto
fore the mail to the president and to
the interstate commerce commission
has been choked with letters from in
dividual shippers expressing a halt'
hearted approval of reasonable ad-
vance in rates" SO far only the ship
pers organizations have opposed the
rate increases.
The letter that was unearthed today
lays bare two facts. 1t shows the rail
roads have been sending dummy pro-
posals to the manufacturers from
whom they buy their supplies, asking
that they announce an approval of
reasonable advance in rates" 1t also
gives some actual testimony to the
effect that railroad materials have de-
creased in cost during the last thirty
years.
The letter is as follows:
1--WE feel that an increase in freight
rates at this time would be detrimental
to us We ship good many of our
goods long distances and have the
freight to pay ourselves, having to
make delivery prices on goods sold to
New York, Philadelphia, st. Louis, st.
Paul and many other places. The re-
suit is that on many of our goods we
have to forego sales because we can
not afford to pay the present existing
freights. Consequently you can read
lily see that for the railroads to further
advance them would be a further hard
ship to us.
Further, we cannot agree with the
statement in your stipulation that you
sent us to sign. Our goods have gone
down immensely in price since we
first sold you small lots of castings
from Rochelle while you were in Mil
waukee Malleabe castings in 1880,
when the writer started at Rochelle
brought 6la az cents a pound.
"The first pig iron we used there
think we paid $45 ton for. Today
maleabe castings are selling for S1a
cents per pound and less in many
cases, and pig iron is worth SIS ton
and wages are materially higher than
they were in 1880.
1--WE have cheapened the cost
through improved methods and larg
er output, Notwithstanding the ad
vance in common labor, and we be
their freight at great deal less pei
ton per mile than they did thirty years
ago, when wages were lower.
Certainly, the roads have nearly al
been able to make a good showing the
last year, and we do not think it righ
to wiring out of us any heavier profits
Further, increasing freight rates |!
not always a gain to the railroads, be
cause each time you push up the rat'
you cut away some of your busines!
and you cause factories to seek othe
localities For instance, cast iron pip'
fittings are now being made down a
Birmingham, Ala, where they ge
cheaper iron and are able to put thei
goods into eastern cities.
I'VE feel we cannot afford to pa.
freight on our cast iron fittings to tn
east. The Crane company, the larges
manufacturer in the world, now make
it's eastern goods and it's Californi
goods near New York city so it doe
not pay the roads for hauling thei
fittings east, nor for hauling them t
the far west.
Railroads can take breakfast food
from Battle Creek to New York for l
cents hundred. They want, for ou
heavy and cheaper goods 30 cents
hundred in car lots and seek to il
crease that to 50 cents so you can Sc
that we feel we are already taxed
the utmost and may be forced to star
factories in other parts of the countr
in order to hold our trade"
This letter has opened up PRACTICAL
new field for the investigation of tn
freight advances, and it is now b.
lieved the examiners who will be a
signed to this work have a clew as I
where they can find witnesses VIII
can give accurate information as I
the cost of materials to railroads du
ing the last thirty years.
U. c, T. Picnic Great Success.