The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1920-08-13

81. 500. 600 GOO of increased rates will
be reduplicated in cost to the llo'
mate They are ali worthless
in the opinions O, authorities so diff
ferent as the department Of justice,
the economist Lauck ana Daniel Wi
lard. president Of the railway which
suffered perhaps more than any other
by government diversion Of its "a
%cilities to service of the people at the
cost of the shareholders.
There Will be no great dependence
upon prosecutions by the department
Of justice to keep the rate increases
from being reelected in goods prices.
The law Is a puny protection against
economic movements up or down.
Mr.. Lauck, the miners cost expert
consistently argues for the increase
of rates as he did for the increase
Of wages. Both Increases, he thinks,
ought to come out of profits, and the
charge upon the consumer ought to
Doe 'infinitesimal." So railway presi-
derts argued before him. There is no
doubt that profiteers would be glaG
TO cover increases OF prices with the
mantle of the rate increase, and that
many will seek TO do SO, Whoever
Is asked to pay a higher price be-
cause of the rate increase has a right
70 feel that his intelligence is insulted.
Railway rates are recboned in mills.
They reach the dignity Of cents only
on cases. carcasses and carload lots.
Countless articles are sold with ma
tional advertising at the same prices
everywhere, regardless of freight con
sideration. In multitudes of cases
Wholesalers prices are made from :
basing point, with freight added.
They and the retailers know to ,
fraction what the addition is. They
are bold who dare to add the freight
on a case Of shoe to each pair, or
on a lambs carcass to an order Of
chops in a restaurant. Buyers who
endure that extortion are simple and
foolish.
Tie best reason is that given by
Daniel Willard. The railways viii be
able TO improve their services to such
an extent that the profits on new bus,
ness viii be able TO absorb the rate
increases. The cost of paying the
rate increases and getting service
will be- less than having lower rates
with service unobtainable at any price.
The ilnp5ssibility OF moving freight
at the fixed rate has been such tina,
water rates are actually above ali
rail rates, and producers have moved
bulky and weighty goods by motor
at prices which make the increased
freight rates look cheap. The cost
Of rates kept below the cost Of serv.
led results in the DISCRIMINATION
of trade and the congestion of credit.
The increase of rates is "infinitesi-
mali when compared. not with the
prices of goods, in Mr.. Lauck's man
ner, but with the loss of profits
by inability to do business on any
terms. When two million tons OF
steel are piled for lack of cars. when
hundreds of millions of dollars worth
of goods are tied up in freight EN-.
bargoes, when building stops for lack
of materials. and there is a shortage
- ga Va toiS VI Npdlt lHeIe re-
suits a lack Of earnings and wages
and profits which makes the in
creases in rates look even smaller
than the comparison Of it with the nj
crease of wages which preceded it.
When the railway wages were las,
raised it was remarked that the in.
crease was the final phase Of the
wage rise, for another could not be
endured. The same may be said of
the rate increase. In both cases the
increases have been capitalized at
the time when they will do the mos,