The Detroit times., 1910-05-31
RAILROADS DECIDE SECRETLY
ON HUGE RAISE IN RATES
Continued from Page onsJ


CContInued from Page One.)
ing the refusal OF loans, the screws
will be put TO the pocket-books OF the
American people on Aug. l.
Already the screws are tightening
but at first-say, the irst S5,0OO,OOo
or so will be taken out of the ship
pers. Then the shipper In turn WIZ
readjust price scales TO reeoup MS
transportation losses and the consum-
er will foot the freight bill.
This increase is entirely independ-
ent OF the increased rates west OF
the Mississippi river. which go mo
effect tomorrow.
Why Such a Hurry?
The railroads say they need more
money TO reimburse them for in
creasing the wages of employees. The
insurgents among the railroads de-
clare the extra funds are needed TO
pay dividends on watered stocks. The
proposed increase in rates, ranging
from 10 to 80 per cent on the neces-
stiles OF life, will bring into the treas
uries OF the railroads more than 1915
0OO. 900. The highest estimate OF eX-
pense for granting the wage demands
of the employees on all railroads Us
800 .OOO. 900. The railroads stockholi-
ers, and not the employees, get the
other $l76,000,000.
Why are the railroads in such
hurry? Because they pretend TO fear
congress will amend the interstate
commerce law TO provide that the
commission shall pass upon the rea-
sonability of freight rate increases be-
fore allowing them to become opera
tive. Under the present law a snip
ger or consumer may not protest
against an increase in freight rates
until he can 60 before the commits
sion and show, beyond reasonable
doubt. that he has lost money through
the operation OF the increased rates.
One such protest has just been won,
after a lawsuit lasting Is years.
II the railroads are permitted to
nut these increases in effect you will
not be able to dodge the tax upon
YOUR household. III you eat bread you
must pay the freight. They take their
toll from every piece OF meat your
family consumes. You cannot even
beat the game by dying, for your e"
tate will pay freight rate on your
coffin.
To Increase Dividends 90 Per Cent.
Calculated on an average OF 20 per
cent, this latest plan will take from
the pockets of the public an addition
al sum OF $276,675,2 200 each year and
increase the dividends of railroads 80
per cent These figures are based
upon the governments estimate that
s76S.5I is the average annual ex-
eenditure OF each OF the 100000
American families.
According TO the summons sent
broadcast among the eastern rail-
roads, the conference was to be held
for the purpose OF ratifying a pro-
posed increase in rates Before II
was over. however, the dove OF peace
was the only absent symbol.
Two railroads refused absolutely 10
be bound by an agreement to the pro-
posed increase, declaring that II was
unwise, in the face OF nationwide agl'
tation against the high cost OF living
and the pending railroad bill In con
gress. These railroads were the Can
adam Pacific and the Grand Trunk,
both OF which are owned for the most
part I'm England and negotiate their
loans independently of Wall-st.
Two other insurgents" however,
were amenable when j. Pierpont Nor.
gan vas Appealed to by cable TO apply
needed pressure. No less than three
cabIegrlms were sent to him, and his
reply crushed out all insurgency
The kickers had II pointed out TO
them that Wall.st could refuse loans
TO shippers who made too much OF
fuss. II was pointed out as an IN
stance OF the success OF this means
OF silenclng restless shippers taat sim
liar tactics had prevented many MANI
facturers and shippers from attending
a meeting at Chicago. called a week
before, TO kick on western rate boosts.
AS for the consumer-thats you, Mr.
Reader--he couldn't understand
freight rates, anyhow, and would new
err find out what was being done TO
him.
How the shippers will receive this
information is problematicaL Dele
cations from no less than three organ
izations OF manufacturers and ship.
pers have been standing with hat in
hand for more than a month. expect
ing TO be called into a general rae
conference with eastern railroads.
No Publicity Planned.
Assurances were required from
those who pledged support TO the In.
crease that they would Immediately
set their forces to work checking and
adjusting rates. There was TO be no
publicity and az soon as the checking
IL completed the notice Of increase
will be hled with the interstate com.
merce commission.
Once tho notice OF increase is fled
with the commission the railroads viii
have won their point. for a shipper
must lose money before he can prove
| he has lost II. and he must be able TO