West-Jersey pioneer., 1873-08-01
Western Railroad Excitement,

country. 1t is well known that for many
years, the West has been greatly il need OF
railroads, and that within the few years past
thousands of miles of roads have been CEN
structed in Illinois and other States. These
roads have been principally constructed by
eastern and foreign capitalists, at time
when it was impossible for the Western men
to raise the capital among themselves
Many of the sections through which these
roads pass, and which now are populated by
thousands, were then mere ''howling VII
derness. 1t was problem yet to be solved,
whether these roads would pay. Those who
invested their means, reasonably hoped for
large return. Now that the time has
come when the returns are available, the
people of the West have decided that the
capitalists are making too great percent
age. They have discovered that the roads
were built at less cost than is represented
by the bonds and stock, and they propose
by legislation to reduce the amount of inter
est and dividends paid. The stock, whether
fictitious or not has in most cases passed
out of the hands Of the original holders.
1t has been sold and resold in an open mar.
ket, under the most solemn guarantees
known%o civilized society, with the under
standing that it represented the bona .fde
ownerships of the roads, with all their earn.
ings, possible as we'll as actual. The laws
and courts assuI ed to it this character, with
out reservation or qualification. To depre-
ciate its value now, would be unjust to the
widows, orphans, various charitable institu-
tions, and Others who have invested their
funds in it. One of the greatest complaints
of .tGrangers'' or Patrons of Husbandry'
is, that through freight is carried on the
Western roads at lower than local rates.
that the farmer half way between Chicago
and the Mississippi should have to pay as
much for his transportation as does the 9TH
er farmer twice as far from market. Some
argue that if the railroads can carry freight
two hundred miles for $2 per ton, they can
carry it one hundred miles for 81; and they
ask for laws which will oblige the roads to
do SO, or rather forces the roads to charge
pro rata on all distances. We endorse the
views of writer in the Christian Union,
who says:
ssThe roads have found with their tracks
kept in repair, as is necessary for their To-
cal business, they can take trains loaded
full on the bank of the Mississippi, and
transport them to Chicngo for-let us say,
by way of argument-$2 per ton, and can
make thereby very small profit, which
helps them to make out their very small
dividends-dividends not exceeding in the
State of Illinois, seven per cent. 1t is to be
noted moreover, that they can run full
trains at little more than the cost of run
ming half-ful1 ones; and the work of load
ing and unloading has to be performed but
once for the whole distance. Yet the pro
rata law, enforced according to the letter
and spirit, would compel the road to carry
freight, taken on for a half dozen miles, at
Just as low rate as this Through lading
The only alternative must be to raise the
through rate to the same percentage charged
locally; and by SO doing drive into other
channels of transportation the produce
which these roads would otherwise bring
from the rivers banks. Is any one SO mad
as to think that local rates will be cheap
ened by this diversion of whatever profit
has hitherto been derived from through
transport? That it would be thus diverted
there is no question.
In former times, st. Louis, for instance,
sent all it's freight intended for the East,
round by way of New Orleans; and it was
only the low rate at which through freight
could be sent that changed the course of its
trade. Let Illinois, then, put an end to
cheap rates for through freight, and it is
certain that the farmers bordering on the
Mississippi, and west of it, will find other
outlets, either by sea, or through States
having more liberal and sensible laws.
The farmers in the interior of Illinois
have by no means as many roads as they
need or want; and a looker-on naturally
wonders whether they think it will help
them to secure new roads if they cut of
even one small source of profit, in the
through business, and force the roads, new
and old, to derive their whole revenues
from local custom merely. Let US sup
pose that to-day the net profit of a road,
running from the Mississippi to the Lake, is
seven per cent, and that one per cent is de-
rived from its through business, and six per
cent. from its local. Will the farmer get
his produce more cheaply transported on
the existing roads if he cuts off the one per
cent. of profit they derive from the through
business? Or does he think such limita-
tions will serve as lures to capitalists who
have money to invest?
In the last ten years, the railroads of Ill
inois have nearly quadrupled their business,
which increase has called for quadrupling
their rolling stock, besides an immense
amount of other outlay for accommodating
their traffic. The coming ten years will de-
mand similar increase, perhaps not so
great an one, but certainly an increase of
vital Importance to the farmer, whose cheap
est and most indispensable tool is the rail-
road which transports his crops. If by their
wild and unreasoning legislation they can
reduce the railroad dividends-which even
now are lower than the interest they them
selves are glad to pay for capital-to a still
lower rate, who will make haste to build
new roads for them, or supply the constant
wants of old ones? Capital can easily
enough be legislated out of country; but
no law has yet been devised which will COM
pei capitalists to an Improbable investment
of their money. When a man can easily
let his capital for seven or eight per cent.
at home, he will not go long distance to
invest, unless there is some fair promise of
ten per cent. returns in the future. That
policy of the farmers in Illinois which would
prevent the producers west of them from
contributing, even slightly, to sustain the
,oads thew so much need IS a r,,ista la of