The citizen. [volume] (Berea, Ky.) 1899-1958, 1911-01-12
Que TO FREIGHT RATES
1T IS RESPONSIBLE FOR The
HIGH COST OF LIVING.
Millionaire Says That People Are eled
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 G. Barber,
the millionaire match magnate. has
sent letter to every member Of con.
gress demanding reforms.
In addition TO the regulation of
freight rates, he demands that laws
be passed that will effectually limit
railroad and industrial capitalization.
lie declares the freight business of
the railroads costs each family sS7 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 sl27 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,
COTpOTdtt OF ptTsOndl
But | vigorously contend that the
commission of excuses in the capital
ization of corporate companies for
!eits 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
uron 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-
an, 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, and with
truth, that these trunk lines were the
great arteries which maintained the
life of commerce; that they were a ne
cessity for quick transportation.
approximately nine billions OF
this is billions OF railroad capitaliza-
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
tering, the railway net earnings have
advanced steadily and the average div
idend rate has more than doubled in
the last Is years.
in 1894 the dividend rate was leg
per cent. Last year II averaged 3.6S
per cent and the railroads earned a
net income of $3.50. 153,2s0.
And the people paid the freight!
Railroad presidents Indignantly
deny that freight rates affect the cost
of existence. James j. Hill 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. X. Gug-
genheim says II is extravaganza on
the part of the laborer. Ogden Ar
mour 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 c; 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 it?
Yours in militant sincerity.
(Signed) 20. G. BARBER"