Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1911-01-19
Is DUE TO FREICnT slTES
In is RESPONSIBLE FOR THE
HIGH COST OF LIVING.
Millionaire Says That People Are Bled
to Pay Dividends on Nine Bill
lions of Watered Stock.

Akron, Ohio - Declaring that ex
cessive freight rates are responsible
for the high cost of living, Ohio C..
Barber, the millionaire match mag
nate, has sent q letter to every mem
Der of congress demanding reforms.
In addition to the regulation of
freight rates, he demands that laws
be passed that will effectually limit
rallroad and industrial capitalization.
He declares the freight business Of
the railroads costs each family $S7 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 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 I vigorously contend that the
commission of excuses in the capital
!zatioi, of corporate companies for
feits instantly the right to claim face
value for such capitalization in the
levying OF 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 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, and with
truth, that these trunk lines were the
great arteries which maintained the
life of commerce; that they were ne
cessity for quick transportation.
Approximately nine billions of this
| 1S billions of railroad capitalization is
fictitious; purely and simply watered
stock, upon which the people of the
United States are taxed in railroad
rates to maintain the annual dividends
despite this tremendous stock wa
tcrins, the railway net earnings have
advanced steadily and the average div
idend rate has more than doubled ir
the last Is years.
''In 1894 the dividend rate was 1 sc
per cent. Last year it averaged 3.6S
per cent. and the railroads earned {
net income of 1852, 1o3, $50.
And the people paid the freight!
Railroad 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 fol
high prices.
Trust magnates disagree All seel
to shift the responsibility. S. r. Gug
genheim says it is extravaganza on the
part OF the laborer. Ogden Armour
says it is the law 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 more equitable distribu
ton of the products of business would
result
What are you going to do about it.
Yours in militant sincerity,
| (Signed) 20, C. BARE .