A rapid decrease in the purchasing power of the money they receive has brought about, within a single decade, a reduction in railway freight rates that cannot be less than twenty-five per cent. This reduction began almost imperceptibly at a time when American railway rates were already lower than ever before in the history of railways and lower than anywhere else in the world. It has proceeded, concurrently with the fall in the real value (that is in the purchasing power) of the American dollar, but in such subtle form that only when its consequences threaten the stability of the American railway system, the wages of railway employes and the prosperity of the great rail-manufacturing, car-building and other allied industries is its real significance and extent perceived even by those most immediately interested. That such a threat now hangs over the railway industry of America and every employe and industry dependent upon it is too plain for argument. The situation is acute and nothing but a prompt adjustment of the rates obtained for the services rendered to offset, partially, at least, the loss in the value of the money received will prevent disaster. That such an adjustment, if effected now, will, at best, be tardy and belated is evident from the facts herein presented, which show that prices in every other industry and the wages of all artisans were long ago adjusted to this fundamental condition. APPENDIX B Statement showing prices of railway supplies purchased in 1897 and 1907 as disclosed by the records of various Eastern railways. It should be noted that the quality of the supplies, made the basis of this statement, may have changed somewhat between 1897 and 1907, but in few instances would the allowance for this source of variation materially affect the results. Prices. Increase. Class. 1897. 1907. Per cent. Locomotives-- Mogul $10,181.00 $14,111.00 38.6 10-Wheel passenger 11,026.00 15,734.00 42.7 Atlantic not built 16,236.00 -- Pacific not built 19,580.00 -- Prairie not built 16,468.00 -- 8-Wheel passenger 10,243.00 13,581.00 32.5 6-Wheel switcher 9,392.00 12,098.00 28.8 Cars (1899-1907)-- Hopper 475.00 1,185.00 -- Box 783.00 1,110.00 -- 490.00 844.00 -- 519.00 897.00 --