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Show T. A. GRIFFIN REPLIES TO DAILY NEWS EDITORIAL ON FREIGHT RATE ADVANCES (From Chicago Daily News.) Mr. Griffin Replies. I desire to call attention to an editorial edito-rial printed in The Daily News, May 21, headed "Back Fire on the Shippers," In which you make the following statements: state-ments: First, that my representation of the case is not candid; second, that w hat I did have to say was based upon the action of the shippers' conference, and, third, that I had no right to pose as a business man having interests in common with the shippers. The circulation for signatures of a jtatement relating to freight rates was, as far as I was concerned, confined to fellow members of the Railway Business Busi-ness association, and no reference was made to the shippers' conference. I personally attended this conference and have no criticism to make on anything any-thing that was done there and none was made or intended by me, but what I "deprecated" was contained in an article ar-ticle sent out by the Illinois Manufacturers' Manufac-turers' Association,' dated May 7, and, as a member of that Association, I personally wrote a letter to each of its Individual members, dated May 17. In this I referred to the misleading and i unfair statements contained in the circular of May 7 mentioned above, and in doing so I was "candid." I said that the statement "that railroads are rapidly increasing their net earnings" was not true and as to the correctness of my statement I beg to refer to the following: The latest interstate-commerce commission com-mission reports show that during the month of March eleven systems, representing repre-senting every railroad north and west on a line drawn through Chicago and St. Louis, show an increase in gross earnings for the month of March, of nearly $7,000,000 compared with March, 1909, while the net earnings for the same roads in the same period show a decrease of $965,000; and the interstate inter-state commerce commission figures for the ten months, July to March 31, in 1910, as compared with 1909, show an increase in gross of over $50,000,000, while the net earnings of these same systems in the same period of comparison, compari-son, show a falling off of over $3,500,-000. $3,500,-000. And, as comparatively little of the increases in wages had even gone into effect during March, the railroads must provide some means to increase a revenue that is already decreasing on an increased amount of business, and there is no way for railroads to provide this except by increasing their rates, and surely there is "reason for the need of it." In the third paragraph on the second sec-ond page of this Illinois Manufacturers' Manufac-turers' Association circular of May 7 It is stated that 7.99 per cent, was earned on the dividend-paying stock, making no allowance for the 34 per cent, of stock on which no dividends were paid. I might, with equal propriety, propri-ety, make the statement that there was no dividend paid on the non-divi dend paying stock. For a clearer definition, defi-nition, the average earnings should be based upon the entire stock, and not upon the best paying portion of it, unless un-less there is some reason why the $2,500,000,000 representing the S4 per cent should not have received any dividends divi-dends at all. In the final paragraph of the editorial edito-rial it is stated that 1 should not be allowed to pose as a business man, "having no interest in common with the shippers." Inasmuch as my concern con-cern shipped an average of 350,000 tons of finished product during 1906 and 1907, and we were obliged to receive more than 350,000 tons of iron to furnish fur-nish this, plus enormous quantities of coke, coal and other supplies, I can safely claim to have shipped in and out 750, COO tons a year, and as there are no railroads who can afford to haul this material, or any part of it, without having a revenue from it, an increase of 10 cents a ton on my hauling charge would amount to $75,000 and, therefore, there-fore, I have "business" Interests in common com-mon wilh other shippers." The 350,000 tons of finished product shipped represented repre-sented in the neighborhood of $10,000,-000. $10,000,-000. This $10,000,000 represented mostly most-ly labor, with the exception of the cost of the ore and coal in the mines. All the balance was made up of wages and profit on the different conditions of the raw material until It was finished fin-ished product. My Illinois plants produced 60 per cent of this amount, or $6,000,000 a year. For three years our Chicago plants have not run more than half capacity. Therefore, there was $3,000,-000 $3,000,-000 a year less in distribution because of a corresponding shrinkage in sales. As most of our iron and coal comes from Illinois, this $3,000,000 a year was not distributed in Chicago, as would have been the case had we worked on the same output that we did in 1906 and 1907. And a great deal of that $3,000,000 which was not paid was taken out of the business firms situated situ-ated in or near Chicago by the non-purchases non-purchases from their varied business on the part of the community that would have received the $3,000,000 a year for three years. That la the reason rea-son why I have a right, as a business man, to deprecate any unfair or uncalled-for obstacles that are placed In the way of my business and the hundred hun-dred other varieties of business in this country that are affected by the money put into circulation by the railroads. When it is further considered that my business constitutes but 10 per cent of the cost of a car and that there were nine other units similarly affected, affect-ed, most of which would have been tributary to Chicago, anyone can see how important it is to his individual interests that the railroad companies should have ample funds to make these improvements and purchases, and will realize how comparatively easy it will be to stand a reasonable advance on the freight for any material he will need, if he is receiving increased orders. Chicago. T. A. GRIFFIN. (Advertisement.) |