The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-11-08
LETTERS FROM THE PEOPLE
Ercights on the Rensselaer, ana Sar-
ntOgn WailrOad.

HeTdH, justifying both the passenger and
freight rates on that road, in which an
effort is made TO show that the net earn
ings were no more than was reasonable for
the use of their Investment.
These articles were what might he ex-
pccted from the pen of writer employed
| by the managers, or at least from Il Evil
ling witness"
| The writer cndcavors to show that in
| 1871, the dividends were about s per cent.
and asks If that is an unreasonable earn
ing, but he at the same time keeps back
the Jtct that the stock had been "watered"
33l per cent. which converted 50 900 into
! 10000, paying dividends of per cent on
the Sl2, 900, which is equal TO paying t03
per cent dividends ON the active capital
Now, if he claims s per cent is fair earn
ing his logic falls, as in fact they made
| 1O5 per cent dividends in 1871, and must
admit that the public had been charged
339 per cent too much of the net earnings.
To put it in another form of the net earn
ings should have been deducted from the
tariff rates whatever they might be. Sup
pose the capital stock to be $4,000 900 the
dividend would be $3.50, 600 and the excess
over a fair dividend would he 100000,
which was taken out Of the public in 1871.
Is it fair and equitable to take one hundred
and twenty thousand dollars from the peck
cts of the public?
The writer admits they must take in
through freight at about the net cost of
| transportation. This discOses the fact that
an unreasonable surplus is taken from the
pockets of those living on the line of the
road-the local traffic This is just where
it comes from. | am aware that we shall
meet with the argument that the property
was worth all it has been "walcred" up to
and theroad originally cost the money. Sup
posing we grant this. Who have lost the
stock in this road ? All those investing
their thousands living on the line of this
road have not only lost their stock, but are
now compelled to pay these high rates to
cover dividends on their own lost invest
ments which have passed to new hands,
which did not cost the present owners a
dollar I he principle is this "a" has
certificate of stock for 81 900, on which he
is entitled $50 of dividends making S1G0
difference with A.
Again, we shall be told that great i'm
provements have been made on the proper
ty which entities the stockholders to in
crease and pocket the stock How is the
fact? Admit that they haYe expended
these large sums in Improvements, who has
paid for these Improvements they have
been paid from the earnings and the diyi-
dends beside. The patrons of the roads
have paid for these improvements-not the
owners.
Again, it is said that the Delaware q
Hudson Canal company leased the Rens-
sclacr Il Saratoga railroad at per cent. on
the stock and lacked $31 900 in net earn
ings in paying their rent. How is this !?
The Delaware Il Hudson Canal company
pay rent on the watered stock They are
careful business men enough to know that
IL was "dtciCu Stoth' i'lu tHcf llOt lully
investigate the condition of things before
leasing the road If they did not, who is
in fault, certainly not the patrons of the
road. The Delaware e Hudson Canal
company stand in the place of the Rcns-
selaer e Saratoga railroad in their oblga-
tons to the public.
Let us ascertain if they are losers. Sup
posing they are out the S31 900, have they
not accomplished the object sought by
placing their coal in the market to the eX-
clusion of all other companies? They
force their coal on the people by their rates
of freight on the coal of other companies,
and it is submitted to. | ask. how long
did it take them to make up the deficiency
of $31 900? Take, for example, one town
in Vermont Rutland One agent sold
10000 tons in 1872 one dollar per ton on
that sale alone would pay about two-thirds
of the deficit, and this amount [is only
small matter compared with the whole
trade which they derive from the control
of these roads.
Here let me cross-eXaminc this ''wiling
witness of the Troy Times. In the state
ment that in 1872 the Delaware and Hud-
son Canal company were short this Sal
600 in net earnings to pay rent, was the
transportation of the coal they sold credit
cd to the earnings of the road? We pause
for reply. If not--and it is believed it
Nvb I,n &
the transportation of the coal sold by the
company at their published rates for such
transportation?
Let me again refer to the Rutland case.
Twenty thousand tons at Sc per ton, from
Albany to Rutland, would be $40, 900,
much more than covering the entire deficit,
and as the Rutland case is to the whole
amount of coal sold so the entire sales to
the answers. Any person who has seen the
long trains of coal, can approximate the
enormous earnings of this road on the
transportation ofits coal, and which thus Sc
cures positive sale of the products of its
mines.
In reference to the comparison of rates
with those of other roads, | have little to
say,-and all fully understand the greed Of
railroad management in this country. 1t
is no excuse for one road to refer to an
other to justify themselves.
The time is at hand when all these rail
road managers will be summoned before
the people to answer for the privileges
granted by the people, and called upon to
give an account of their stewardship and
justice will be demanded of them We
have faith in the people yet-let all watch
and inform themselves on these great and
important questions, that they may be pre-
pared to act judicionsly.
Railroads are a great public benefit, and