Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1911-01-12
DUE TO FREIGHT RATES
THEY ARE RESPONSIBLE FOR
THE HIGH COST OF LIVING.
Millionaire Says That People Are Bled
to Pay Dividends on Nine Bill
lions of Watered Stock.

Akron, O.-Declaring that excessive
freight rates are responsible for the
high cost of living, Ohio c. 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
he 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 cost per family to $127 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,
| appreciate fully the Importance of
stability of vested rights in property,
corporate or personal.
But | 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 sci
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 railroads 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 we're a
necessity for quick transportation.
approximately nine billions of
this Is billions of railroad capitalize.
ton is fictitious; purely and simply
watered stock, upon which the people
of the United States are taxed in rail
road rates to maintain the annual div
idends.
despite this tremendous stock wa
terlng, the railway net earnings have
advanced steadily, and the average
dividend rate has more than doubled
in the last Is years.
"In 1894 the dividend rate was Let
per cent. Last year it averaged 3.6t
per cent, and the railroads earned
net income of 1852, 153,280.
"And the people paid the freight!
Railroads presidents indignant,
deny that freight rates affect the cos
of existence. James j.. Hill and w. c
Browne declare low acreage produc
ton by the farmer is responsible fo
high prices.
Trust magnates disagree. All seel
to shift the responsibility. S. R. Gug
genheim says it is extravaganza o.
the part Of the laborer. J. Ogden Al
mour says it is the law Of nature.
This one problem of railroat
freight rates is the great economi
question Of the age. Were it fairl
solved all other lines of commerc
and trade would soon adjust then
selves and a more equitable distribr
ton of the products of business woul
result.
What are you going to do about 1t
Yours in militant sincerity.
(Signed) 20. G. BARBER"