American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1911-01-14
DUE TO FREIGHT RATES
IT Is RESPONSIBLE FOR THE
HIGH COST OF LIVING.
Millionaire Says That People Are Bled
to Pay Dividends on Nine BIZ
lions Of Watered Stock.

Akron, O.-Declaring that excessive
freight rates are responsible for the
high cost Of living, Ohio G. Barber,
the millionaire match magnate, has
sent a letter to every member Of con-
gress demanding reforms.
In addition to the regulation Of
freight rates, he demands that laws
be passed that will effectually limit
railroad and industrial capitalization.
He declares the freight business of
the railroads costs each family $87 a
year. This latter, coupled with the
other earnings of the railroads. he as
serts, has boosted the average rail
road ost per family to 1927 annually.
Barber starts his letter to the con-
gressmen with these three demands:
what is the matter with America?
"What Is the matter with congress?
why has the seat of government
been transferred to Wall street,"
Continuing, he says: PERSONALLY,
l appreciate fully the Importance OF
stability Of vested rights In property,
corporate or personal.
But I vigorously contend that the
commission of excuses in the capital
ization Of corporate companies for
feits instantly the right to claim face
value for such capitalization in the
levying of a tax upon the American
public for the payment of dividends
upon this watered stock. And in this
offense the railroads always have set
the pace.
Conceived in the master minds of
Huntington, Morgan, Hill and Harri-
man. this policy has been worked out
to a nicely. These clothed the scheme
in the pretty catch phrase of a com
munity Of interests and ~cleverly set
about to grab all the through trunk
lines Of railroad from coast to coast.
They argued plausibly, and with
truth, that these trunk lines were the
great arteries which maintained the
life of commerce.; that they were a me-
cessity for quick transportation.
Approximately nine billions of
this eighteen billions of railroad cap
italization Is fictitious; purely and
simply watered stock. upon which the
people of the United States are taxed
in railroad rates to maintain the an
nual dividends.
Despite this tremendous stock wa
tering, the railway net earnings have
advanced steadily and the average div.
idend rate has more than doubled In
the last fifteen years.
"lu 1894 the dividend rate was 1.66
per cent. Last year 1t averaged 1858
per cent. and the railroads earned a
net income of $S52,153.2S
And the people paid the freight!
Railroad presidents Indignantly
deny that freight rates affect the cost
OF existence. James ]. Hill and w. C.
Browne declare low ncreage produc-
ton by the farmer is responsible for
high prices.
Trust magnates disagree. All GEEK
to SHIFT the responsibility. S. r. Gug-
genheim says 1t is extravaganza on
the part Of the laborer, Ogden Ar.
mour says it is the law OF nature.
This one problem Of railroad
freight rates is the great economic
question of the age. Were il fairly
solved all other lines of
n trade would o o adjust them
selves and a more equitable distribu.
ton Of the products of business would
result.
What are you going to do about 1t?
yours In militant sincerity.
tSignedl 20. c. BARBER"