Manchester Democrat., 1911-01-18

ascertain the truth respecting the cor
which none could effectively
deny, the committee, as disclosed by
its report, had sought to turn its in
into a prosecution of the
legal officers of Illinois who had re-
vea.ed the corruption and brought pro
eeedings against the guilty men.
The final battle between counsel
sor the railroads and shippers over
the proposed upward revision of
freight rates is now on before the
Interstate Commerce commission.
1t is of some concern to the public
whether the government is to permit
the increases. because increased
freight rates, like increased tariff, ad-
vances the cost off living fevery
man, woman and child DIN the United
States.
If the retail merchant is forced to
pay a fraction of cent more per
F.
yard for cotton goods than he did for
merly, he must of necessity pass
the increase along to the consumers.
10 advance goods from 5 to 5 1-2
item in the cost of living.
If merchant must pay 2 or 8
cents more per pair for shoes, he
must either bear loss, which might
be very considerable in the course OF
a year, or make the consumer pay
the increase. If he does the latter,
he adds at least 10 cents to the sell
ing price, and more likely 20, as
prices in all but the very cheapest
shoes usually move in quarter dollars.
These instances Illustrate how
the proposed increases concern the
COMMON man, the mechanic, the clerk
the small merchant, the professional
man. However, the question before
the Interstate Commerce Commission
Is not whether the effect of the in.
creases will be to increase the cost
Of living. The commission gives alb.
solutely no consideration to the eff
feet of increases as it will apply to
the consumer The commission con
centrates it's attention to whether
the railroads should be allowed still
more profits than they are now en-.
joying.
Leaving the interests of the con.
sumner out Of the controversy, the
question which confronts the commits
sion is: Are the proposed advances
fair, equitable and justifiable in the
premises?
The railroads argue they hav,
within the present year granted in
'reases in wages which will tota
sS4,0OO,0O0 annually. They, represen
that this additional $34,O00,O00 ex-
pense would compel the suspension
of dividends or of the policy of i'm
proving the properties out of surplus
earnings.
But 1T was brought out during the
progress of the railroads side of ths
case that while their wage increast
will amount to s34,0O0,OOO, the oper
ating revenue of the companies viii
be s54,00O,O00 greater this year thar
last. In other words, the railroads
after paying the increased wages
will have $2O.OOO,OOO more to divide
'or 1910 than they have had in the
previous twelve months.
The railroads pretend they are eacl
year getting nearer bankruptcy. bu
the figures which they furnish to tbs
commission do mot bear them out
From 1890 to 1908 the number o1
'oads paying dividends rose from sc
to 66 per cent The average dividend
rose from 5.45 to 81 per cent. In
1900 the surplus in the treasures OF
she carriers available for improving
.he properties was $19O,0OO000. In
1908 it was $7oo,0oo,o0o! From 1885,
to 1907 the earning power per mile
was increased 345 per cent.
Brandeis Delivers the Goods.
Louis d. Brandeis of Boston, one Of
the. best public servants i'm the coun
try not on the public pay roll, has
shown the railroads how they could
save that million a day which he
promised, some time ago. He show.
ed, item by item, where ito save it,
and how. The basis of his logic was
comparison of methods used by diff
ferent roads. He showed that one
railroad, under a certain system, pro
duced certain thing much cheaper
than other roads employing a less
scientific and more expensive system
He declared it would be practical fol
all of the roads to adopt the improv-
ed system Of the one, and. that the
aggregate saving ON that one item
alone would run up into the millions
every year.
Brandeis told how cheaply the Sam
ia Fe road conducts it's shops, car AMI
locomotive repairs, compared to its
competitor, the Southern Pacific, and
told how the Stanta Fe does it. If
the Southern Pacific would adopt the
same system it could save a vast
sum. He showed that the New York
Central pays out a little more than
half as much, with a bigger business.
Why? Because the Pennsylvania ap-
proximates closer to scientific man
agement
American railroads, said Mr..
Brandeis, pay more for steel than
American steel concerns sell 1T for
abroad. This is because Mr.. j. P.
Morgan and the men who control the
steel trust also control the railroads.
Four great steel companies have 65
directors. These 65 men are direct
ors IN railroad systems operating two
thirds Of tho oo,,ntrv,c miIaaoo rTha