Evening journal., 1911-10-21
HIGH COST OF LIVING
By John S. Hamilton.

The following clipping is taken
from a news article in a Philadelphia
paper, and is an abstract from a story
headed "Steel Combine to Give Up
Big Ore Leases" The writer uses
il in this communication because he
wishes to call attention TO what he
believes is a forceful illustration of
the cause Of the high cost Of living
in this country, and In using It he
also wish to point out, II he can, how
this evil might have been prevented
in the past, and at the same time any
thing like it be avoided in the future
1T was reported today that the Steel
Corporation proposes TO surrender IT'S lease
OF the Great Northern ore properties and 20
reduce the freight rate on iron ore shipped
over Its railroads from Minnesota ranges 10
Lake Superior The rate is go cents per
ton That 70 is excessive would appear in
the fact that last year tho Duluth. Missabm
and Northern Railway. which handles the
lion s share Of this iron ore traffic. paid divi-
dends to the amount OF 240 per cent on
its s41125oo capital stock, all Of which
the Steel Corporation owns"
It will be noticed in reading the
above abstract that the freight rate
for carrying this ore was eighty cents
per ton. IL Will also be noticed that
the Duluth, Missaba and Northern
Railway, which handled the larger
part of the iron ore traffic, paid divi
dends to the amount of 240 per cent,
that is to say that on an investment Of
S4,112,000 they cleaned up in profits
last year, which was bad year at
that, the tidy sum of s9,S6S, 500. It
will also be noticed that the Steel
Corporation owns all the stock in this
remarkable money-making railroad.
Now let It be remembered as we goI
along that these immense profits we're
collected by the Steel Corporation
through a railroad which was operat-
ing under a charter or franchise that
was granted by the authorities of
some state, and let II be remembered
that this nearly ten millions Of
dollars beside going into the pockets
of the stockholders increased at least
that much the price Of steel which
Is consumed the country over, and
adds Just that much to the cost Of
the peoples living.
The writer thinks II is worth while
TO say something about this, because
there are a great many good people
who believe that II Is right and proper
for a corporation to be permitted 70
40 db IL Dltdbtcf anu IL a idlliOdA IL
making dividends of 240 per cent II
is only what It has a right to do, and
to make any effort to conhne the cor
poratlon within bounds, be they rea-
sonable or otherwise. Is interfering
with BUSINESS and the work of a
demagogue. II seems incredible that
a people as intelligent as the Ameri-
can people would have TO be enlight-
ened on this subject. and yet, sad II
Is to say. many Of them have not
even learned the alphabet of the
language Of real self-defense.
A railroad or any other public util-
ity operates under a grant of special
privilege bestowed upon II by the
authorities. II receives charter
under which Il operates. and all the
rights OF an individual, but this Is
J written in the instrument under the
provisions Of which it operates. II Is
prevalent belief, even among we'll
meaning people, that these corpor-
alton in addition to what is called
their charter rights. have all the
rights OF an individual but this os
a fallacy which in the next few years
will be effectually exploded. for ever
, If It we're not contrary to law II Il
, contrary to common sense and at wal
> with the enlightened spirit of our in
stitutions and the we'll being Of th'
race. A corporation has no rights
: or at least should. and will finally
have no rights only those written II
! its charter. In granting a charte'
therefore, the privilege should always
be granted under clearly defined limi
. tations. These limitations should D!
all means AK the maximum proht.
In addition to this fixing OF TN
. proft the interests Of the people
should be protected in every way Z
guard against human selfshness an'
the Inherent love OF power, which n
the predominating characteristic o
. the human race. II the railroad spokei
of above made nearly ten millions o
dollars in a lean year on an invest
ment OF a little more than -FOUR mil
. lions Of dollars, every dollar OF ina
= profit above four hundred THOUSAND
dollars was an imposition. and adde'
inst that much unreasonably to tn
1 cost Of living Of the people. Tnis eN
: cess was placed on the price Of stee
ana high steel prices made the pric
of everything you could mention high
er. For instance: An advance i
a the price OF steel makes an increas
' in the price OF railroad construction
An increase In the cost of construc
ton means an increase in cost q
n distribution OF all necessities, highe
: rates, decreased wages, or a passe
n dividend, and thus It goes, an endles
chain, ever passing and ever return
ing to pass again.
a The lesson to be learned from thi
4 is that no franchise or charter shoul
( be granted to any public utility, eve
II they make attractive lookin
promises. that does not first limit IN
l. profits to be collected by those askin
le for the privilege. There are othe
r important restrictions that should
insisted on. but the limitations of tn
profits Is the most important consider
IT alton first, last and all the time.
II It Is incredible in this twentieth cen
j" tury that a strange man could appea
Id in a city like Wilmington and max
m even a hopeful fight 10 secure a frar
r chise TO use the streets, the school
= -.