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

A.s( WA0SNS0So = ASNSOsOt VI sAAS AOAAVo>A
question on which all western people
should have enlighted views. Our
only reason tor copying 50 long an ar.
ticle is its merits.
We have followed, and shall coutin.
ne to follow, the Farmers movement
with great interest, but it must be cou.
fessed that it seems at times of no lit.
tie difficulty, owing to the very hetro-
geneous oomposition of the organisation
carrying 1t on, and tho vide diversity
Of their character and avowed aims.
The farmers have been accused, part
ly in consequence Of their escapade
about the judges in Illinois, of seeking
to rob the railroad companies of their
lawful earnings by forcing them to
carry on their business at a loss, unde,
the operation Of cast iron rules, drawn
up without references to its peculiar
nature. This was . charge Of which
the farmers soon began to see the
gravity, and they accordingly now an
nounce that they have no scheme Of
spoliatioa Of confscation in their minds
but that they have at last hit upon q
mode of ascer.aining what are treason,
able rates." which consist in discover.
ing what was the amount Of capital
actually invested in constructing and
operating the roads," and treating a
fair percentage Of this as = proper re-
turn to the stock holders, and all
charges which bring in more than this
as unreasonable" and therefore open
to prohibitation by the courts and
State legislatures. The farmers now
say hat no road shall be SO worked as
to pay interest on anything but the
proceeds of the bonds, or, in other
words, the actual cost Of construction
and equipment. This, stripped Of de.
tails. is the new plan, Is graveiy pro-
nounced by the Chicago Tribune.
Now, if anybody will get up and
propose a general railroad act of this
nature, applicable to all roads hereafter
to be built, we think We can promise
that be will have the hearty support Of
everyl ody who has seriously reflected
on the railroad problem. Forbid the
construction Of any road except with
the proseeds Of paid-up stock, and for
bid any higher dividends than = GER
tain fixed percentage on this amount,
and we shall have q rule of which no.
body can complain. We 10 not b ;.
lieve that a single mile of railroad
would ever be constructed under such
rule in a new and thinly settle
country like the West or South. Safe
investments, and one promising Utmost
cases no return at all for several years,
for the mere chance Of seven or even
ten per cent. at the outside. But We
should, nevertheless, be heartily glad
to see the plan tried, and believe it
would, by stopping railroad construc.
tion for the present, bring the Western
farmers to a healthier comprehension
of their relation to the roads, and rail
road companies to helthier compre.
hensiou of their relations to the com.
munity, and might tend to solution
of the railroad problem which would
be both ornament and satisfactory.
But the application Of any such rule
now, to roads already iu operation.
would be spolitaion pure and simple
A spoliation as fragrant ~ any ever
proposed by Karl Mark or Ben Butler;
it any attempt were made to carry it
out, it would produce perhaps the
greatest financial crash ever witnessed.
1t has in the FIRST place that leading
characteristic Of Ben Buffers green
back scheme. that it would not only
violate a tacit pledge made by the
State to individuals, but it wonld de-
prive men of rewards already earned
by running great risks. When rail-
road constructed for two million dollars
is made to earn interest on four mil.
lions, the case is precisely similar to
that of government which in time
Of great danger and perplexity sells
seven per cent bonds At fifty; and the
present proposal Of the farmers resem-
bic Buffers plan Of paying the bond.
holders in 1870 what they paid for
their bonds in 1862. In fact, it is the
old-fashioned game on an old scale Of
"heads l win, tails you loose" The
Weat has during the past thirty years,
wanted railroads, which there was a
very small chance Of making profitable
for q long time. It encouraged East
ern men and foreigners to make them
in any way they pleased, running
.--tever risk there was, and pocket.
ing whatever gain there might be,
and they were made. The investment
then was one Of great danger and diff
Guilty to treat it now IS Of no dangee
and no difficulty would be simple
swinding.
In the second place. as regards the
older roads, it is not possible for ''the
people" or anybody else to ascertain
what is the exact amount on which, in
abstrat justice, the earnings ought to
pay interest. The stock, whether
fictitious or not, has in most cases,
passed out Of the hands Of the original
holders. It has been sold and resold
in open market, under the most SOL
emn guarantees known, to civilized
society, With the understanding that it
represented the bona 6la ownership Of
the roads, With all their earnings, pos
sible as we'll as actual. The laws, the
courts, and public opinion assured, to
it this character, without reservation
or qualification. In this character,
it has passed into the hands Of widows,
orphans, and helpless people gener
ally, Of charitable corporations, Of COL
leges, hanks and institutions Of al
kinds by which the affairs Of tho COM
munity are administered. To throw
any doubt on its value now would be
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