The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-05-26
PRESIDENT OF PENN R. R.
TELLS WHY FREIGHT RATES
SHOULD BE- INCREASED

In response to a request from the
editor Of The Philadelphia Ledger,
Samuel Rea, president of the Pennsyl-
vania Railroad Co. forwarded the fol-
lowing letter concerning the proposal
to increase freight rates:
philadelphia, Pa, May 8, 1913.
T the editor of The Public Ledger:
The public should know exactly what
is meant by the proposal to increase
freight rates 5 per cent. The annual
revenue from freight in the territory
concerned Is about $500, 600, 600. Five
per cent on this is $40, 000, 200. There
are about 40, ZOO, 900 people in this por-
ton of the country. The proposed in
crease therefore "a an average of
81 per year per head of population
8 cents a month,
Everybody knows that the railroads
have been put to greatly increased ex-
pense in recent years. On the Penn
sylvania railroad system lines east of
Pittsburgh, the added cost of new leg
i~slation from August, 1905, to Deem
Der, 1912, was nearly $11,000,000. Cues
ton is not here raised as to the pro-
priety of the legislation; the fact Is
that it has cost $11, 900, 600, in six years
to comply with, it. f. g. ,.,tE
Recently many more laws have
been enacted. These will cost still
more. The New Jersey grade crossing
"NAA way OIL SOoN W
this company's system of more than
$50, 000,0 900, for that law imposes upon
the railroad companies the entire bur
den Of the cost of removing all grade
crossings. Extra crew laws, drinking
water laws, railroad valuation laws,
all are adding to the cost of running a
railroad. =
Now arrangements of railroads
seek to obey the law If the public,
through constituted authority, de-
mands certain measures of safety, GER
tain improvements, certain convent
ences, it is entirely within the right of
this public to express that demand in
the form of law. But certainly such
measures of safety and comfort must
be paid for by somebody. The rail
roads are only too happy to remove
all grade crossings, to equip every
mile of track with automatic block
signals, to make every car of all steel
construction, but to do these things is
utterly impossible without the money
with which to pay for them.
There are some people who believe
the railroads are owned by a few, mil
lionaires who could afford to sacrifice
a portion Of their interest on bonds or
dividends on stock without feeling the
effects. AS a matter Of fact, there are
nearly 100, 900 persons interested as in
INVESTORS in the stock Of the different
COMPANIES OIL the HSAlSylVdIla rail-
road system. It is likely that holders
of this company's bonds number 20O,-
900. A very large percentage of these
investors are m Enormous in
vestments in American railroad secur-
Titles are held by savings banks, insur-
anc companies and trustees of es-
tates.
Strike at the investor of railroad
securities and you hurt ~depositors in
savings banks, policy holders in life
insurance companies, women investors
and many others least able to cope
with the situation. The capitalist does
not submit to a reduction of his divi-
dends to q point below what he can
realize from some other investment in
this country or in some other part of
the world. Capital Is liquid and it
flows to where It Is wanted and will
be properly paid for.
IF investments in American rail