, 1873-08-29

CLAIM, that, ltappon what 1nay thoy must receive
tho highest rotnrn for tho capital invented In
them Why IL II Tint capital invested In rail-
road nauRt not tako tho Bamo chnncos ~ enpEtAl
insoHtod In manufactures, nud whnt peculiar
HancLity III loro In rntroad etoe1 tlat ontit1oa tt
to rcgular .llyitlon evon II tu obtain It requires
the plrl,tlcr Of the pnblic?
Tint taruatls ;are cotu,nou carriers, md
suot sto Bubtott 10 tlo coiiiu'on law Htipuiatlou
that thdy Gnu only demand roaaonablo compon-
gation for tho aorrico performed, ia conceded
faot. No charter onn givo thon right to do.
mand compensation that Is o1tortionnto or un-
just, Or unreasonable. Now, in asccrtaining
what ls u reasonable domand for Borvioea por-
formed, Is tho assumed cost Of tho road, aa zop-
1oacnted by tho capital stock md debts, fair
basis upon which to mako tho ossi-
mate7 Tho Railroad Company may, through
tho corruption Of its officers, havo paid 100000
per milo for construction, when 1t might havo
had. tho Banao work done for $4,000 per mi1o
Tho earnings Of tho road may bo squandefod in
tho mott reckless and fraudulent mnnner, md q
balance -sheot may bo prosoutcd showing a very
mall'percontngo OF profit But is tho gonoral
public to bo taxed to make good tho deficiencies
in railroal receipts caused by extravaganza, or
fraud, Of bad management Can the Railrond
Company include a1l this In Its emotions, and
claim that to be- reimbursed Is but reasonable
domnnd. Railroads nro not now thing in this
country. They hnvo boen in progress long
enough, and tho general business is 90
thoroughly understood that there ought to
be no difficulty at this day in ASCERTAIN
ing what ought to bo m honoat average
in tho cost Of construction aud equipment Of q
railroad, what ought to bo m honestcost OF
mnintainhnce, a11d what ought to 10 fair oquiv-
alcnt for the transportation Of passengers and
froighta. In ascortaining those roar,lte, the
anount Of capital stock aud debts Of tho COM
pany ought to bnve but little wo1ght. III n nn-
jority of casos they tainted with fratd OR are
largoly fictitious. A fair and reasonable cont
penantion is to bo ascertainod, not by finding out
rates Tint will yield 10 por cont on tho capital
invested in that particular rond, but by an eati.
mate Of tho yaluo OF the aorViooB rendered
| IL no m0To ioiiQH6 tuat Iue NuAuFa
ny must have 10, or Q, Or poi
cent profit on tho capital invested. than II
does TINT the farmer shall havc an equal rate o
profit On the cnpisal invested in his farm. Il
railroads cannot be run ut rates for transporta
tion which arc reasonable and mako dividends
then thoy must DO run without dividends, just at
all other business Which Ia unproftablo IL run
Tho argumont tint railroads must receive fol
/ their services auch royonuo as will lnauro diTl
vond on thouapital invested, ia fallacious; it Il
unjust wrong In theory and i'll practico. nail
roads arc subject, like all other pcrsons, rea
anl fictitious, to tho great law Of trade whorol'
profit Or losb is not matter Of personal coutrol
They arc prohibited by the great Inv Of common
right from demanding anything moro than
reasonable compensation for tho servico ron
dered, md it does not In the least affect th
amount Of thiH compensation whother tho bn1
ancc c-s.eot OF The Company shows q profit q
| n 1ngH.