The Coalville times. [volume] (Coalville, Utah) 1894-1923, 1911-01-13
DUE TO FREIGHT RATES
IT is RESPONSIBLE FOR THE
HIGH COST OF LIVING.
Millionaire Says That People Are eled
10 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 c. Barber
| the millionaire match magnate, has
sent letter to every member Of con
gross demanding reforms.
In addition to the regulation Of
freight rates. he demands that laws
be passed that will efectually limit
railroad and industrial capitalization
lie declares the freight business Of
I the railroads costs each family $50 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 1927 annually.
Barber starts his letter to the con.
gressmen with these three demands:
what Is the matter with America?
what II 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.
commission Of excuses In the capital.
ization OF corporate companies for.
fcits 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
oncnse the railroads always have set
the pace.
Conceived In the master minds OF
Huntington. Morgan. hin and Harri.
man. this policy has been worked out
to a nicely. These clothed the scheme
In the pretty catch phrase Of com.
munity OF interests and cleverly set
about to grab all the through trunk
lines Of railroad from coast to coast.
They argued plausibly, aud with
truth. that these trunk lines were the
great arteries which maintained the
life OF commerce; thet they were a ne.
cesslty for quick transportation.
approximately nine billions OF
this eighteen billions of railroad cap.
itallzatlon 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
"ln 1894 the dividend rate was 1.6G
per cent Last year II averaged 3.GS
per cent and the railroads earned a
net Income OF SS52.ibJ.2sO.
And the people paid the freight!
Railroad presidents Indignantly
deny that freight rates affect the cost
OF existence. James J. Hin and w. c.
Browne declare low acreage produc.
ton by the farmer Is responsible for
high prices
Trust magnates disagree. All seek
to SHIFT the responsibility. S. Il. Gug'
gcnheim says II is extravaganza on
the part OF the laborer Ogden Ar.
mour says it's the low OF nature.
This one problem OF railroad
freight rates is the great economic
question OF the age. Were It fairly
solved all other lines OF commerce
and trade would soon adjust them.
selves and a more equitable distribu'
ton Of the products OF business would
result
What are you going to do about II?
Yours In militant sincerity.
(Signed 20. c. BARBER"