Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1874-04-30
What Alexander Mitchell, says about
the Railway Law.

A special correspondent OF the Mil
waukee News, frem Washington, has
interviewed Alexander Mitchell, ON
the railway law, and we give the
principal points he makes:
Ii takes just about seventy-five per
cent. of the gross earnings of our
| road, under the former law, to pay
for repairs and running expenses, and
this leaves US only thirty per cent.
for the payment of the interest on
our bonds and to declare dividends
TO our stock holders. The new law
h94dsp baf GgE .r!eceipts about twenty:
thirty per cent. left of our gross earn
ings, after paying running expenses
etc, we have now only five, and so
we can only run al a loss. OF course
we have but one course left open to
us if all are forced TO observe the new
law.
If we are driven to it, we will have
to stop entirely. This will be inev-
liable.
The matter is now in the hands of
eminent counsel, who are carefully
considering the subject. Nothing
will be done without the most de-
liberate thought. If we fail to show
the unconstitutioEality of the law,
then we shall be forced to stop run
ming our trains.
The law is direct Infringement
upon private rights, in the arbitrary
division of RAILROAD into classes, pro-
portioned according TO their earnings
Roads that do large business are
taxed more heavily than those that
do lesser carrying trade this is as
unjust as would be like tax upon
merchants, in propotion to the bust
L ess they do. However | am fully
aware that the legislature has the
right to interfere within proper linn
it's to prevent the charge of extor-
Tomato rates.
Our stopping would likely result in
bringing the legislature together.
They have the power to repeal our
charter, but they can 60 no further.
They cannot touch cur property with
out indemnifying US for it, and if
they would have either to buy Us out
or give Us a new charter.
The matter is under careful advise
ment. Mind, l do not speak of it as
threat, it is only whether we shall
be forced into stopping or not One
thing is certain-if the present law
stands, and we are forced to observe
it; | see no other alternative but TO
stop.
PASSENGER RATES.
Mr.. Mitchell further said: "The
Milwauk ee and st. Paul company
have spared no expense in order to
carry their passengers safely, comfor-
tably, and with reasonable expendi-
ton, and they can not continue to do
this at less than the present rate of
four cents per mile. With inferior
trains and reduced speed the fare
might be somewhat lowered, and
when the substitution of steel rails
tor iron rails now in progress on the
main lines shall have been completed.
q reduction in the rates of transpor-
tation for both passengers and freight
can be made. The recent laws NAV
| fear, delay this much to be desired
consummation by affecting the cred
it of the company and thereby i'm
pairing their ability to raise the re-
quisite means. All of the net earn
ings of last year, after paying inter
est upon the bonded debts, were put
into steel rails and rolling stock, and
our stockholders received no divi-
dend whatever in money. The hold
ers of preferred stock getting ia se-
curities about the equivalent of 6 per
cent, and to the holders of common
stock nothing at ALL"
About "watered stock" he said !: !
"The property with the large equip |
ments, depot grounds, numerous ele- |
vators, &C., stands at a cost of onlv |
S38 600 mile, and do not think 4 |
could be duplicated with cash in |
hand tor much of any thing less"
Thew have q 0fapoDarapao -,