The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1873-08-14

railroads is due to AN immense but
deeply seated popular delusiou a. to
the value Of railroad property. There
we're in operation last year in the
United States 81, 1923 miles Of railroad,
the net earnings Of which bore to the
cost Of the roads the relation Of $50
per cent, aud to the capital stock Of
2.21. This means simply that the
work Of transportation in the United
States is, on the average, already done
at a loss to the owner of the lines, or
in other words. vastly more cheaPly Ia
the public than there is the least like.
lihood of its being done iu any. other
way-an assertion which anybody may
verify ty examining the accounts Of
the New York State canals. Now,
fancy anybody's seriously proposing "a
capitalists to construct railroads, q
most of the Western railroads were
constructed, through = bowling wilder.
ness, for the chance of Eve and halt
per cent, whenever the earnings al.
lowed it and fancy what subjects for
spoliation are presented BY the bloated
owners Of railroad property, who pock-
ct on an average less than four per
cent. on the face value Of their stock.
Let us add, finally, that no corporation
should be restricted by law to certain
rate of earnings, unless it contracts
freely to do til, work on those terms,
or has q minium guaranteed it by the
State. In short, the railroad question
We would remind the Chicago Tribune
is not simply question Of dollars and
cents. It is a question Of morality in
its highest and most important phases
and one the settlement Of which must
touch the security of all property, and
affect the value Of constitutions as safe
guards Of indivipual rights.
We have gone on for thirty years,
treating railroads as private property,
and permitting and encouraging their
construction by private enterprise.
Out of this numerous abuses have
grown up, which ought to be remedied
The corporations have grown too pow
erful their influence in politics is cor
rupting; The power of directors in the
management is too great. For the re.
form Of all this, careful legislation,
preceded by careful inquiry. is neces.
sary. The prohibition ofspecial legis-
Iation would do much to abate the cor
ruptiou. Some means ought also to be
devised for protecting the minority Of
the stockholders against the despotic
virtual con6scation. Of those holding a
bare majority of the stock, or, in other
words, OF giving stockholders the
raeaos Of actually experimenting the
management Of their own property and
defrauding themselves against ''rings"
and "raids." Moreover, the power OF
directors to do anything but work the
road ought to be diminished. Their
discretion as regards extensions, com
bination, consultations, leases and
purchases ought to be greatly reduced,
if not destroyed. This involves two
things not casi y supplied. One is
wise legislation, and the other honest
government inspection. How far we
are from both is best shown by the
illinois attempt at reform, which con-
sists at present in taking the working
Of the roads out Of the hands OF the
exceedingly able body Of trained busl- u
ness men who now have charge OF it,
and compelling them to use crazy ia.
bic of rates" erawu mp by mob OF
excited aud ignorant politicians. If
We are not prepared for this, the alter
native, and the only one, is the pur
chase Of the railroads by the State, and
their management by our Murphys
and Caseys. We shall not argue
against this at present. for obvious rea-
sons. But this, whatever difficulties it
may present, is the only honorable way
of escaping the necessity of such re-
forms in the present system as We have
indicated above. Whatever the evils
Of our railroad system, they are not to
be met or removed by fraud.