The Rock Island daily Argus. [volume] (Rock Island, Ill.) 1872-1873, 1873-04-01

The Rock Island ARGUS has done the
public o substantial service in printing the
details Of the construction Of the Peoria
q Rock Island and the Rockford, Rock
Island q St Louis Railroads The pub
LEGATION Of these facts should call the at
tentiOu OF the farmers, and especially Of
the Railroad and Warehouse Commission
crs ~ another evil connected with railroad
management, which is fully as important
a. the special evils now under discussion
In the Farmers Conventions, and in reality
Is one Of the principal causes which leads
g. the eXOrbitaut rates Of freight and
determinations OF which the farmers COM
plain.
The mode Of constructing the railroads
named above is but n sample of the mode
OF constructing nearly all railroads at the
present time The company obtains sub.
-crpu1us from towns and counties through
which the road b % pass upon the strength
OF certain benefits which 1t is alleged it
viii, confer upon Those places Having
gathered IN their subscriptions the com.
pauy then proceed o. issue first mortgage
bonds, which are placed upon the market
aud sold sometimes exceeding the cost OF
the road the surplu, going into the hands
Of the construction ring I pom the top of
this, stock A. issued without "a dollar being
paid IN, and increased from time 70 time
and new mortgage bonds and stock diyi-
dcnds are piled up, Pclion on Ossa. until
hy far the larger capital OF the stock Of
the road as represented on paper, Is hcti-
tinus In order to earn dividends on this
stock oveI and above the payment OF m
tcrcst on the bona fds Indebtedness, II
becomes necessary 10 increase the rates OF
transportation. That necessity, however,
II lies within the power Of the Railroad
Commissioners ~ obviute, and II is q tea-
turr ~ railroad management which calls
for Their Immediate consideration. They
have mt upon one cause for high rates, IN
the cXacuOns OF protective tariffs here
Is another which has its origin in watered
stock. The practice Il one which not only
presents itself tu the farmers for Their
serious consideration, but appeals with
still stronger force to the Railroad ant
Warehouse Commissioners a. a violation
Of the Constitution, which provides Art
ri Sec IT,, that mo railroad corpora
ton shall issue any stock or bonds, eXccp
for money, labor, or property actually re
cciyed and applied q the purposes 10
which such corporation was created; an
all stock dividends, and other fictitious il
crease Of the capital stock, or Indebtedness
Of any such corporation, shall be rod.
ANY increase in the aggregate OF bond
and stock ovef and above the actual cos
OF the road is fictitious, and therefore void
according ~ the constitution OF the Stat,
Nearly all the new railroads in the Stat
have done and are doing the same thinl
Let the farmers now demand, aud tn
haiIrlad aud Warehouse Commissioner
enforce the demand, that this provision {
the CONSTITUTION shall be respected, an
that these issues Of fictitious stock an
otRer forms Of Indebtedness shall be no
only declared but made void To nay III
interest on such Indebtedness and pay div
ldends on this fictitious stock the compar
les must charge ,exorbitant rates. tn
necessity can be obyiated Ly thS cnsorc,
ment Of the Constitution which of ;,se
will be long step towards remoying n
grievances u which the farmers comnLi,
-Chicdgo Tribune.