Images not showing although still on the server

Hi

I used to help with this website and the owners told me hundreds of photos on their articles disappeared.

I looked into the server and all the images are still there.

I looked up the permissions too, they are
R/W – Owner
R – Everyone

Here’s an example, I can see this picture on the server and can download it and access it right on that link, but here, it’s not showing:
http://hushmagazine.ca/wp-content/uploads/2014/02/PastelRachelZoe.jpg

I also just found out that the folder permissions don’t have “read” for “Everyone”. Perhaps that could be it?
When I try to change it, it doesn’t work, it stays unchecked. I’m doing this in Dreamweaver, perhaps logging in through another ftp program would work.

Or could it be some totally different issue?
Also, why would this happen randomly like this?

Any thoughts and suggestions very welcome!