Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1911-01-13
DUE TO FREIGHT RATES
1T is RESPONSIBLE FOR THE
HIGH COST OF LIVING.
Millionaire Says That People Are Rled
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.
He declares the freight business Of
the railroads costs each family $S7
year This latter, coupled with the
other earnings of the railroads, he as
serts, has boosted the average rail-
road cost per family to $127 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
l appreciate fully the Importance of
stability of vested rights in property,
corporate or personal. But l vigor-
ously contend that the commission of
excesses in the capitalization of cor
porate companies forfeits instantly
the right of claim face value for such
capitalization in the levying of tax
upon the American public for the pay
ment of dividends upon this watered
stock And in this offense the rail-
roads always have set the pace. Con.
ceived in the master minds of Hunt
ington, Morgan, Hill and Hartman,
this policy has been worked out to a
nicely. These clothed the scheme
in the pretty catch phrase of a com
munity of interests and cleverly set
about to grab all the through trunk
lines of railroad from coast to coast.
They urged plausibly, and with truth,
that these trunk lines were the great
arteries which maintained the life of
commerce; that they were a necessity
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
iuShuos DSSpllS lulS SlOCh
watering, the railway net earnings
have advanced steadily and the aver
age dividend rate has more than
doubled in the last Is years. In 1894
tie dividend rate was 1.66 per cent.
Last year it averaged 1858 per cent.
and the railroads earned net income
of 1852, los, ,2S0.
"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-
ton by the farmer is responsible for
high prices. Trust magnates disagree,
All seek to shift the responsibility.
S. R. Guggenheim says it is extrava-
gance 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 1t
"Yours In militant sincerity,
| (Signed) 30. c. BARBER"