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Show DDE TO FREIGHT RATES' I i I I i IT IS RESPONSIBLE FOR THE I HIGH COST OF LIVING. Millionaire Says That People Are Bled to Pay Dividends on Nine Billions Bil-lions of Watered Stock. 1 I Akron, O. Declaring that excessive 1 freight rate are responsible for the 1 high cost of living. Ohio C. liarber. ' the millionaire match magnate, has sent a letter to every member of con- ' gress demanding reforms. I In addition to the regulation of freight rates, be demands that laws 1 be passed that will effectually limit : railroad and Industrial capitalization. 1 He declares the freight business of the railroad cost eiy h family $H7 a 1 year. This lutter, coupled with the ' other earnings of the railroads, he as- serts, ha boosted the average rail i road cost per family to 1127 annually, liarber starts bis letter to the con- , gressmen with these three demands: "What la the matter with America? "What 1 the matter with congress? "Why has tho siat of government been transferred to Wall street?" Continuing, be says: "Personally, I appreciate fully the Importance of ' stability of vested right In property, 1 corporate or personal. "Put I vigorously contend that the commission of excesses n the capitalization capital-ization of corjKrate Companies for-r for-r felts Instantly the rlgtyt to claim face - value for such capitalization in the levying of a tax upon the American public for the payment of dividend 1 upon this watered stock. And in this 1 offense the railroad always have set ' the pace. i "Conceived In the master minds of 1 Huntington, Morgan, Hill and Harrl- , man, this policy has been worked out , to a nicety. These clothed the scheme , 1 In the pretty catch phrase of a 'com- l munlty of Interests' and cleverly set ' about to grab all the through trunk , lines of railroad from coast to coast. ( "They argued plausibly, and with , truth, that these trunk lines were the 1 great arteries which maintained the ( 'f life of commerce; that they were a ne-ccssity ne-ccssity for quick transportation. ( "Approximately nino billions of ( this eighteen billions of railroad cap- ( 1 Itallzation is fictitious; purely and ( 1 simply watered stock, upon which the ( 1 people of the United States are taxed ' in railroad rate to maintain the an-: an-: nual dividend. ' "Despite this tremendous stock wa ' terlng. the railway n-t earning have l ' advanced steadily and the average dlv Idend rate has more than doubled in , the last fifteen years. , "In 1&H4 the dividend rate was 1.66 ; per cent Last year it averaged 3.68 ' per cent, and the railroads earned a , ' net Income of Sii2.1."3.280. 1 "And the people paid the freight! ' 'Railroad presidents indignantly deny that freight rates affect the cost ; of existence. James J. Hill and W. C. i ' Hrowne declare low acreage produc-' produc-' tlon by the farmer Is responsible for high prices "Trust magnates disagree. All seek ' to shift the responsibility. 8. U. Guggenheim Gug-genheim says it Is extravagance on j the part of the laborer. Ogden Ar- i I mour says It Is the law of nature. , "This one problem of railroad freight rates Is the great economic I ! question of the age. Were It fairly , solved all other lines of commerce ( and trade would soon adjust them- selves and a more equitable dlstribu . tlon of the product of business would . result. "What are you going to do about It? i "Yours In militant sincerity. (Signed! 0. C. PARHKR." |