Show RELATION OF RAILROAD RATES TO GENERAL p BUSINESS I the Business Man No mat mat- I. I oW objectionable an advance In 4 rates s may be to us personally n recognize that an improve improve- in 1 general business Is dependent betterment of operating and conditions of the railroads i he operating results are most factorY is readily seen by I 1 st STATE INTER COMMERCE MISSION reports leports which show f for r the nine months ended April 1910 eleven en railroad systems all alland and nd North of a line drawn from ngo g to St St. Louis compared with same me roads for the same period In previous r year rear had their gross ings i increased about ell net earnings showed a dee de- de e ot of and for the 1 ot of March on the same compari compari- they y show an Increase of JOlin gross and a decrease of in net earnings I t Is called to the tho fact that wage Age ge Increases except a small fat were not In to force during this d fand and from now on these will l ply 1 increase the operating cost ie same railroads had their taxes a ed d over the previous year XI OOOO or 14 and have to pay pays s rates of Interest on their theil loans re lates e roads covering the most pros pros- us ts part of the country may be con con- of general rail rail- fc ons r p the past three years of poor poorness n ness eSs SS railroad expenditures for were necessarily at the it point and in consequence their re power equipment and tracks demand a greater proportion of st g ni g expense No o provision has hasIs of or is being made for the growing Dds ads of the country and as transition trans trans- mID is the backbone of business or inefficiency cripples cripples' rather other condition because all prod- prod are e valuable in the ratio with r their accessibility to the con- con ng ig market most important to the shipper railroads at all times Umes are fully ped to take care of an increase of The first eight months of demonstrated that the railroads not handle the business then of- of I with ith any degree of satisfaction I financial conditions since have not d them to even maintain their P position If the then volume of ess were to come back supple- supple d by the three years growth of in the Interval would W uld be paralyzed and what cost the shipper compared a I reasonable advance In freight r now ow Such an advance would de the means for avoiding this riding n disaster The iron horse E be kept in good condition for forame forame ame same reason as the living horse f for or r transportation The team team- knows that if his horse is not shod iliad well groomed and well fed I his s harness and wagon kept in Repair pair that all he will save on economy conomy will be many times Q d in to the efficiency of his trans trans- tion tion and also add great expense expense whipper It is the same th the railroads the shipper has a ato Io to O demand that transportation and efficient the success of ofu u siness and the development of are dependent on it e Investor To do this the rail rail- must show adequate returns to tot totaro t taro tain ln proper borrowing credit and nt t a promising source of invest- invest D tb procure the necessary funds and develop the property eded eded It is neither the railroad d lent dent nt nor the shipper that controls it is the investor alone holds the key without his t i d 1 dollar the railroad cannot ex ex ex- 0 Improve no matter how great grea t eeds of the shipper or the country be all all the Increasing cost of opo op- op o on supplemented by ever Ining In In- ing ig and burdensome legislative e concerning their earnings l of the fact that the average averaged c end end d rate on railroads was less D 3 per cent for the past sl six x 3 and the United States Supreme e t n the case of the Consolidated Consolidate d COI Company ny stated that G 6 per cen cenas cent t as affair fair return on money Invested d utilities with the average e rate ht in 1909 1909 of three-quarters three o of P 1 iper per ton per mile the lowest i In Iny inars n years y ars the average passenger rate rat e mile mile rolle one and tenths nine-tenths cents ever reached Is It any won won- Investor holds back an and I J Bankers n demand high Interest t 1 from Crom the railroads The railroads railroad 3 to put their lines line s roper condition and to Increase terminal facilities at all points point s IDe are even l now OW a necessity an and d more for modern new net I motive power and equipment to move ove their freight with promptness and econ econ- o omy my Where can they get the Wo money Only by increased earnings from advanced ad ad- rates and by so doing better their credit by attracting the ed dollars that are now going to other more attractive but less productive In vestments What will the advance cost the UI Ul Consumer Poors Poor's Manual says the average haul of all freight In n 1908 1905 was 1 12 miles The average rate in 1909 was three fourths of a cent per ton Ion per mile The average total rate for the average average aver aver- age total haul assuming g It to be the same as 1908 1903 would be per ton An advance of 10 on this rate would increase the cost 10 cents per ton tOD or 1200 1 of a cent per pound An advance ad ad- v vance ance of 10 on the present specific rates would increase the cost of pounds dressed beef in New York shipped from tram Chicago 4 cents pounds canned fish In St. St Louis shipped from Maine Mane 1 8 10 cents pounds flour in New York from Minneapolis Min Mm I neapolis 2 cents a suit of clothes In Chicago from Boston Doston cent the same for a womans woman's suit On amans outfit coat trousers shoes and hat New Nett England to Mississippi l Valley not notto notto notto to exceed 1 cent The Ultimate C Consumer can multiply these t lions ions indefinitely The manufacturer jobber and retailer could easily absorb this slight advance because if his business increased but one unit that would more than pay the increased cost on one hundred units Railroad net earnings thus Increased the railroads would have a ready market maret mar mar- k let ket et for their securities and with the money thus obtained again start all the business and industries now comparatively com cont Idle that are directly or Indirectly indirectly In in- directly d dependent on their property T f The he e working men melt would be bo fully tully employed employed em em- p loyed their families would again purchase purchase purchase pur pur- chase freely and that means good b business for everyone There are railroad em em- It tapes takes men to supply sup sup- p ply ly what the railroads need and a vast number of men are employed in supplying supplying supplying sup sup- plying the personal needs of the above men and their families representing representing rep rep- r resenting p people ople Every kind hind of business is dependent in some measure on railroad prosperity High cost of living If it had not I een for the encouragement given railroad investors in the past where would we have been to-day to for our food supply They opened up thousands of miles rulles of undeveloped and unproductive land and yet our food is high because became of lack of supply our consumption J Js is increasing in In- u- u creasing faster faster- than than- our food pl tion If the railroad investor stops ashe aa as he now has there will be an air advance In food rates soon that will be far greater than increased freight rates High food means high labor and hl h b labor means high everything Therefore There There- f fore ore the Ultimate Consumer and the th State and National Governments should be interested in developing land that will produce bountiful food products Half of the country west of the Mississippi Mississippi Mis Mississippi Is li not used and will not bt until covered with railroads Why would want to build roads in tive five lands when those in cultivated country will barely pay the lowest rat rats raid of interest and the owners and managers man managers agers agel'S are being harassed and as in no other business This condition will only improves Improve when the business man realizes thai that the investor does not provide th source of his own investments H He waits for you to do that in some desirable de- de form By your individually letting let letting ting ling things drift and doing nothing your legislator with no business ex experience experience hearing no advice and receiving ing no direct information which he gladly would from you quite likely you do not even know his name lis lia tens to the only voices heard the agitator agi agitator agitator or the aggressive shipper whose whoso views of the business world are obtained ob obtained tamed b by looking out of the smal small hole of a funnel directed at his own plant unconscious of other conditions of far more importance to his own busin business ss than the freight rates Such men as these by their vociferous vigor have stirred up a popular corpora anti tion agitation that has cowed all par parties parties ties and they are so scared of being charged as owned or bought that all questions of principle equity or th the general good are ignored The railroad rail road man draws his salary whether the road pays or not he does not own it If he does say anything he is sal sat upon Th The stock holders as a body are defenseless You are the sufferer and the only one ono who would be listened to Will you not study your own Interests interests interests inter inter- ests ests find out your legislators legislator's name and tell him the real situation Otherwise Otherwise Otherwise Other Other- wise we must walt wait until grim necessity sity starves out the present rail anti road fever June G 6 1910 T T. A. A GRIFFIN Advertisement |