The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-06-24
legitimate. 1t is doubtful If Uncle
Shelby's record for service, party
faithfulness, honesty and poverty can
be equaled in the annals of the re-
public
RAILROADS AND THE PUBLIC.

T. A. Griffin, In Reply to Editorial on
Freight Rate Advances, Shows They
are Interdependent.
t. A. Griffin In Chicago Daily
News: desire to call attention to an
editorial printed in The Daily News,
May 81, headed Back Fire on the
Shippers" in which you make the fol-
lowing statements: First, that my
presentation of the case is not can
did; second, that what | did have to
say was based upon the action of the
shippers conference, and, third, that
! had no right to pose as business
man having interests in common with
the shippers.
The circulation for signatures of a
statement relating to freight rates
was, as far as / was concerned con-
fined to fellow members of the Rail-
way Business Association, and no ref
erence was made to the shippers con-
ference. personally attended this
conference and have no criticism to
make on anything that was done
there, and none was made or intend
ed by me, but what l deprecated"
was contained in an article sent out
by the Illinois Manufacturers Asso-
citation, dated May Z, and as
member of that Association, I
personally wrote letter to each
of its Individual members, dated
above, and in doing so was candid
| said that the statement that rail-
roads are rapidly increasing their net
earnings" was not true, and as to the
correctness of my statement beg to
refer to the following:
The latest Interstate Commerce
Commission reports show that during
the month of March eleven systems,
representing every railroad north and
west on line drawn through Chica-
go and st. Louis, show an Increase
in gross earnings for the month OF
March of nearly s7000,000 compared
with March, 1909, while the net earn
ings for the same roads in the same
period show a decrease of 5000:
and the Interstate Commerce Com
mission figures for the ten months,
July to March 81, in 1910, as compar-
ed with 1909, show an increase in
gross of over $50,000,000, while the
net earnings of these same systems in
the same period of comparison, show
a falling eff of over s3,5o0,000. And,
as comparatively little of the increas-
es in wages had even gone into effect
during March, the railroads must pro-
vide some means to increase a rev.
enue that is already decreasing on an
increased amount of business, and
there is no way for railroads to pro
vide this except by increasing their
rates. and surely there is reason fol
the need of it," 81
In the third paragraph, on the sec
ond page of this Illinois Manufacture
ers' Association circular of May Z II
is stated that 7.99 per cent was earn
ed on the dividend-paying stock, max
ing no allowance for the 81 per cent
of stock on which no dividends were
| paid. might, with equal propriety
| make the statement that there was nc
dividend paid on the non-dividend
paying stock.
| Fora clearer definition, the average
earnings should be based upon the en-
tire stock, and not upon the best pay
| ing portion of it, unless there is some
reason why the $4,000 100000 repre-
senting the "a per cent should no
have received any dividends at all.
In the final paragraph of the edi
torial it is stated that should not bt
allowed to pose as business man
having no interest in common will
/ the shippers" Inasmuch as my con
Germ shipped an average of 350,00'
! tons of finished product during 190'
and 1907, and we were obliged to re
ceive more than $4,000 tons of iron t,
furnish this, plus enormous quaint
i ties of coke, coal and other supplies
/ can safely claim to have shipped il
and out 100000 tons year, and a
/ there are no railroads who can affort
W MAUI ILLS IUdL6Tldl, OF duy part u
it, without having revenue from il
an increase of 10 cents ton on m.
hauling charge would amount to SIS
600, and, therefore, | have cuisines
interests in common with other ship
pers.' The 100000 tons of finishe
product shipped represented in TIL
neighborhood of s10,000,000. This $40
100000 represented mostly labor, wit
the exception of the cost of the or
and coal in the mines. All the balanc
was made up of wages and profit OIL
the different conditions of the ray
material until it was finished product
My Illinois plants produce 60 pc
cent of this amount, or $6,000O00
year For three years our Chicag
plants have not run more than hal
capacity. Therefore there was $4,000
600 year less in distribution be
cause of a corresponding shrinkag
in sales. AS most of our iron and Goa
comes from Illinois, this $3,000,000
year was not distributed in Chicago
as would have been the case had W