The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1910-06-14
COST Of PROPOSED
FREIGHT INCREASE
Tax Average Family $40
Annually

AT the meeting OF the State Pres5
ASSOCIATION at WriShtsyille last week
MT W. c. Hamrner. who Delivered
the annual Grafton, after discussing
the duty OF editors, touched upon
matter Of vital pubic interest in dea-
ing with pubic service corporations.
what he said is timely and important
and Will interest anu instruct othars
than editors. He said IL part
Public service corporations are a
great benefit TO the public. but as a
rule they give the public such pro-
lection and such privileges as they
are compelled to, and no others. one
of the greatest questions that We have
TO deal with in the future, especially
IN this State, will be the water power.
mere Is enough water on one
stream in North Carolina which runs
through the center of the State. if
properly developed to turn every
wheel and every piece of machinery
IN the Southern States. 1t is only A
question Of a few years, unless State
legislation prevents, that these great
natural resources of the country will
pc by gigantic
t1OnS. The wonder is that the tremen-
dous water power on our rivers in the
middle and western parts of the State
nave not been developed before now
he chief evil in North Carolina
which the people and NJ
should be and are most concerned
Id liz o4o1I 1tfAEEAdk4kFl N
railroads against this State in freight
rates. Yet the remedy is simple The
way is clear; and Caa be expressed in
a few words. IT need not be said
here. as every one who has studied
the question should know without be-
ing told.
The telephone, the telegraph and
the express companies exOrbitance in
rates and charges which the public
are compelled to pay in order that
dividends may be declared on stock
which is watered many times its
value, are all questions which intelli-
gent, conscientious men should study
and discuss after full and honest in
y~estigations.
The foolhardiness and lack of wis
dom of great combines of this charac-
ter are the causes of trouble being
heaped upon them, and their DISPOSE
ton to gouge the public adds fuel to
the fire which sometimes consumes
them and creates and arouse preju-
dice against them by the minimizing.
Take the Western Traffic ASSOcia-
ton, composed of twenty-five rail-
roads for example, which gently
made their own agreement as to rates.
wiped out the Sherman law and set
themselves up as a hISher power than
the United States. They attempted
to violate the antitrust law with
immunity when it stood. in the way Of
desired additional profits. 1t was not
a question of whether the rates should
be raised but whether the roads
should be allowed to cOnspire in de-
fiance of the law.
"A failure on the part of the gov
eminent officials to file an Injunction
against the western railroads would
have been an dcQuieScenCe in the SuS-
pension Of the Sherman law. and the
officials would have had no moro
right to do this thar the railroads
would have had to violate it.
THE proposed increase of ten per
cent in freight rates would mean one
hundred and seventy million dollars
additional cost Of living to the people
of this country. 1t would be upon
an average Of nearly ten dollars a
family. 1t is said that three dollars is
paid for moving freight for every dol
lar thai is expended for passenger
fare.
There is really no reason for an
increase of freight rates by the West
ern Traffic Association, or by any
other traffic association of this coun-
try. The better engines, the lonSer
trains and other equipments make
transportation cheaper than formerly.
and the additions to pay rolls are
only a p~retext. 1t is a notorious fact
that railroad dividends have increased
in the last few years, and even the
weaker roads with stock watered be-
vond measure have become dividend
paying.
"A statiStician says:
From 1898 to 1908, rather a bad year,
railroad mileage increased but "a per
cent: gross earnings. 80 per cent; net
earnings. IS per cent Ola per cent
in 1900; interest paid to the real
builders and owners Of the roads. 81
per cent, and dividends to those who
owned and manipulated the stocks,
184 per cent.
"A number Of State papers nave
called attention to the u~nreaSoning
hostility to corporate wealth which
has been created by the blind actions
and a failure to exercise common
sense in their relations with the pub
lie. Take for instance the order of
the Interstate Commerce Commission
to the Pullman Company to make s
slight reduction in the cost Of UPPER
berths of sleeping cars. This
which always declares a large divi-
dand on the stock which is admit.