New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1910-07-09
T. A. GRIFFIN REPLIES TO
DAILY NEWS EDITORIAL
ON FREIGHT RATE
ADVANCES.

ments: First, that my presenta-
ton Of the case is not candid !;
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 a business man having inter
ests in common with the shippers.
The circulation for signature of
statement relating to freight
rates was, as far as | was con
cerned. confined to fellow mem-
bers Of the Railway Business As
sociation, and no conference was
made to the shippers conference.
| personally attended this con-
ference and have no criticism to
make on anything that was done
there and none was made or in
tended by me, but what | ''de-
precated' was contained IN an
article sent out by the Ihinols
Manufacturers Association, dated
May Z, and, as a member Of that
| Association, | personally wrote a
letter to each Of It's individual
members, dated May II. In this
| referred to the misleading and
unfair statements contained in
the circular Of May 7 mentioned
above, and 10 doing so | was
"candid.' | said that the state
ment "that railroads are rapidly
increasing their net earnings "
was not true and as to the cor
rectness Of my statement | beg
| to refer to the following.
The latest interstate commerce
| commission reports show that dur
ing the month of March eleven
systems, representing every rail
| road, north and west on a line
drawn through Chicago and st.
Louis. show an increase in gross
earnings for the month Of March,
| Of nearly $7,0OO,00O compared
with March, 1909, while the net
earnings for the same roads in
the same period show decrease
Of 1865, 900; and the interstate
commerce commission figures for
the ten months, July to March
81. in 1910, as compared with
1909. show an increase in gross
of over $50, 100000 while the net
earnings Of these same systems in
the same period Of comparison,
show a falling off of over $3,50O,-
900. And, as comparatively lit
tie Of the increases 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 provide this except by increas-
ing their rates, and surely there
is treason for the need of it. .
In the third paragraph on the
second page of this Illinois Man
ufacturers Association circular of
May Z it is stated that 7.99 per
cent was, earned on the dividend
paying stock, making no allow
ance for the 81 per cent Of stock
on which no dividends were paid,
might, with equal propriety,
make the statement that there was
| no dividend paid on the non-divi-
dend-paying stock. For a clear
err definition, the average earn
ings should be based upon the
| entire stock, and not upon the
best paying portion of it, unless
there is some reason why the 81
| 500,O0O,0O0 representing the "a
per cent should have received any
dividends at all.
In the final paragraph of the
editorial it is stated that | should
not be allowed to pose as a busi-
ness man, "having no interest in
| common with the shippers. P" In
| asmuch as my concern shipped an
average of $4,000 tons of fin
ished product during 1906 and
1907, and we were obliged to re-
ceive more than $4,000 tons of
iron to furnish tfiis, plus enorm-
Gus quantities Of coke coal and
other supplies | can safely claim
to have shipped in and out 75O,-
900 tons a year. and as there are
no railroads who can afford to
haul this material, or any part
of it, without having a revenue
from it, an increase of 10 cents a
ton on my hauling charge would
amount to $500 and therefore,
I have business interests in com
mon with other shippers. ~ The
$4,000 tons of finished product
Eshipped represented in the neigh
Fborhood of 100000. This $40
OOO,O 900 represented mostly labor
with the exception of the cost OF
the ore and coal in the mines. All
the balance was made up of wag-
es and profit on the different con
ditions of the raw material until
it was finished product.
| My Illinois plants produce 6o
per cent of this amount. or So,
4 10000 dollars year. For three
year, our Chicago plants have moi
run more than half capacity
Therefore. there was 100000 {
year less in distribution because o.
a corresponding shrinkage II
sales. As most of our iron anc
coal comes from Illinois, this
| So. .0O0.000 year as not distrlbut
ed in Chicago, as would have beei
the ease had we worked on tn