Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1911-01-18
RESPONSIBILITY | ! FOUND.
Millionaire Says That People Are 5Ied
toiPay DIVIDENDS on Nine Billions
Of Waaered Stock.

Akron, O.-Declaripg 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-
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.
He declares the freight business Of
the railroads costs each family s87 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 s127 annually
Barber starts his letter to the con-
gressmen, with these three demands:
What lis. the matter with Ameica?
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. i'm property,
corporate or personal
"But vigorously contend that the
commission Of excesses in the capital
ization. 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 dividen nds
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 a nicely. These clothed the
scheme in. the pretty catch phrase of a
community 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
necessity for quick transportation.
approximately Line billions of this
Is billions of railroad capitalization
is fictitious: purely and simply water
ed 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 aevrage
dividend rate has more than doubled
in the last ;.15 years.
"In 1894 the dividend rate was 1.66
per cent, Last year it averaged 1858
per cent and the railroads earned a
net income sof sS52,153,2SO.
"And the people paid the freight!
Railroad presidents Indignantly
deny that freight rates affect the cost
Of existence. James ]. Hill and w. G.
Browne declare low acreage produc-
|stion blythe farmer is responsible for
high prices.
. 5nates disagree. All seek
Ito >ditfsraesresp sponsibifity. S. r. Gug.
genheim says it 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 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 it?
Yours in militant sincerity,
(signed) 30. C. BARBER"