The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-12-07
FREIGHT RATE ADVANCE AS
EDW. FRENSDORF VIEWS 1T

We are nearing the season OF good
fellowship, when mankind is mellow
and our hearts go out TO our less ior-
tunate brothers, and can see no rea'
son why men and women earning from
30 cents day up should not sho"
their appreciation of the privilege
granted by the kindly gentlemen VINO
own this country, permitting us 10 re-
main on earth and do their bidding
Morgan, Rockefeller. Hill and the bal
anee OF the .unfortunates VINO own the
railroads OF the country are begging
OF you and me TO aid them and prom
ise that such funds as we may donate
will be expended in the Improvement
of their property How generous.
But even that Is not true; they
would do nothing OF the kind with the
increased earnings from higher
freight rates. They would absorb that
and the minute any improvements
were TO be made, new issue OF bonds
| would be doled out to the public ana
next year another appeal would De
mado to the people asking FOR an
other increase in rates TO enable
them to pay the interest on the bonds
issued for these improvement.
From the clever way the beggars
have this proposition framed up. one
would think these roads belonged TO
your city, county or state, and all
these improvements would belong TO
you because you are asked to pay
for them, and that you and your pos
terity were TO have the benefit OF this
additional equipment for all time.
Put the reverse is the fact The more
improvements made the more the bond
issue, and the freight rates named are
based on fixed charges, and the III
terest account Is the first TO be con-
sidered You pay II.
Upon q capitalization that Is based
on a liberal estimate or the actuaI
value OF the property and equipment
OF every kind and nature. the present
freight and passenger rates would pay
dividends OF 81 IA per cent Some
very good authority place II at over
% per cent proft)-notwi thstanding
we'll established charges OF extrava-
gance and graft In the management.
That's the way these big fellows get
an much money-by issuing stocks
and bonds only limited 10 the extent
they can get the public TO absorb;
nv taking over a property for five mil
lion dollars and at the ED OF lie"
vears, in which time many KINDS vi
Juggling and consultations are anect
ed. II receives the magic touch ana
"a made part OF one OF the great sys-
tems. Then twenty millions In oonds
and ten millions OF preferred ana
twenty millions OF common STOCK are
issued against this fve-million-doilar
nrouertv OF few years before.
inst want TO say that stocks and
bonds are issued against railroad
nroperty on the slightest excuse ana
MANY times without excuse or reason
and for no other purpose than TO en-
rich the manipulators who pocket the
proceeds OF the sale OF these securi-
ties.
TO make this point more clear.
would ask you To inquire as 10 the
number OF railroad stocks that pay
"a high az Z per cent In dividends.
think you can enumerate them on
your thumbs Those paying 6 per
cent dividends are mighty few. The 5
per cent class are not any too numer.
ous. When You get down TO the 4 per
cent limit less than half the roads can
get i'm. while I'm the class from per
cent 10 less are the other 90 per cent
OF the roads enrolled.
Can YOU see why this Is? Simply
I because az soon as the road shows
earnings on It's present capitalization
the public Is made aware OF II through
different publications and at an oppor.
tune time a limited amount OF new
| Issue Is 10 he offered The public ne
ing eager for It over-subscribes the
amount offered and II goes TO pre-
MUM thus giving the insider chance
10 unload his holdings that cost him
nothing. as | see IL, an increase I'm
freight rates-means an increase In
earnings-this means an Increase IN
the Lond and stock Issue Where is
the public benefited?
For the most part those who are
making tho loudest clamor for higher
freight rates are nothing hut stock
market msnipulators. who expect and