The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-06-29
Why Higher Rates Are Needed

to do so, we were obliged to have the
bonds printed in French, and cut up
into denominations of s100 each.
We supposed that arrangements for
the disposal of a similar issue OF
Michigan Central bonds were practl-
cally closed, but cablegram received
yesterday morning, following the an
nouncement of the Injunction pro-
ceedings at Hannibal, Mo., advised us
that the Michigan Central bonds could
not be sold, and that all negotiations
had been declared off by the French
bankers.
This leaves us no other recourse
THAN to go into the local market and
borrow money on short time notes,
as we did in 1907, or Immediately
stop all improvements. Neither
course can be adopted without SER
ious injury to the business of the
country. To stop Improvements means
ito throw a large number of men out
of employment, and stop purchases OF
material and machinery.
/ If the railroads are compelled to go
into the money market in this coun-
| try as borrowers to the extent Of
1 hundreds of millions of dollars, on
/ short time notes, it means the rapid
absorption of the available money in
the country, the running of interest
rates up to prohibitive figures, seri-
ously embarrassing all of the other
| business interests that must depend
on the banks of the country for neces-
sary capital
4 A moderate increase in freight
| rates, which would have no appreci-
able effect on either the business
man or the consumer, would give the
business of this country the most pow
erful stimulus OF anything can think
of.
4 have gone into this matter in de-
tail, and have given you the exact
facts. In a word, have tried to lay
/ the cards in our hands, face up on
j the table, and have done this be-
cause / have great faith in the ulti-
mate fairness of the business men OF
this country, and especially of the
business men of st. Louis.
believe the present to be one OF
the most critical junctures in the
business history of the nation. If the
railroads can secure a reasonable In
crease in rates, and the harvests, this
/ fall, are up to the average, | am con
fident that the year 1911 will be the
most prosperous the United States
has ever had.
On the other hand, If this very nee
/ essary and very reasonable increase
in rates is denied, / am equally conf
: dent that it will result in an almos'
complete stoppage of all purchases O
i equipment and all improvements il
railroad property, because / am salts
, fed that the railroads will be reluct
antly forced to the conclusion tina
the authorities and the business inter
ests of the United States are deter
mined that the great interests repre-
of the country shall not have far
play.
In submitting the above statement
am forced to admit that, in my opin
!, , ion, conference such as is called TO
next Tuesday ought to have been ar
ranged for in the earlier stages o
the consideration of this advance il
! freight rates.
!, Associations such as yours are en-
: titled to the information that / hay
! endeavored to give you, and / am sal
isfied, if given this information il
time to enable you to give the fact
: full consideration and verify then
! where any doubt exists as to thei
correctness, that such unfortunat
controversies as the carriers are nov
engaged in with their patrons, woul
! to a very great extent, be avoided.
feel like apologizing to you for in
: posing this long letter on you, but, a
: cannot be present at the conferenc
on Tuesday, l feel anxious that 20
should have before you the fact
Il herein presented. Yours very truly,
e w n BROWN