The Forrest City times., 1911-01-13
DUE II FREIGHT RATES
THEY ARE RESPONSIBLE FOR
 THE HIGH COST OF LIVING.
Millionaire Says That People Are Bled to Pay Dividends on Nine Bil-
 lions Of Watered Stock.

Akron, O.-Dee!agine t4at excessive freight rates aae responsible for the high cost Of living. Ohio C. Barber, the millionaire match magaate. has sent letter to every member of con Sress demanding reforms.
 In addition 10 the regulation of freight rates, he demands that laws he passed that will effeetually limit railroad and industrial capitalization
 He declares the freight business of the railroads costs each family SS7 year. This latter, coupled with the other earnings of the railroads, he as serts, has boosted the average rail road cost per family 10 SIP annually.
 Barber starts his letter 10 the con gressmen with these three demands:
 What is the matter with America?
 What is the matter with eongfess2
 Why has the seat of government been transferred to Wall street 22s'
 Continuing he says: Personally, l appreciate fully the importance of stability of vested rights in property. corporate or personal.
 But I 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 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 nicety. These clothed the scheme in the pretty catch phrase of com munity of interests and eleverly set about to grab all the through trunk lines of railroads 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 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 terlng, the railway net earnings have advanced steadily. and the average dividend rate has more than doubled ill the last 15 years.
 h 1894 the dividend rate was 1. .6G per cent. Last year it averaged 3.GS per cent, and the railroads earned a net income of $S52 153.2S0.
 And the people paid the freight,
 Railroads presidents indignantly deny that freight rates affect the cost of existence James J. Hill and N. C. Browne declare low acreage produc- tion by the farmer is responsible for high prices.
 Trust magnates disagree. All seek to shift the responsibility S R Gug- genheim says it is extravaganza on the part of the laborer J. 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 We're il 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.
 (Signedl 70. C. BARBER"