The Grange advance., 1874-08-12

bc1ds TO make up the Deficiencies of
the last two years, tie leading stock
holders in this city, who are also the
managers of the road, have paid from
their owr pockets nearly $25O,OOO. If
it can hold on for few yea,s until the
southwestern part of the State becomes
little more densely settled, it will be-
cozee one of the most profitable roads in
the State and will be able to give to the
people who patrc1,ze it far more rea-
sonable rates than any OF the roads
from the building Of which fortunes
were m.ie; but if it's income were now
verz much reduced, it would endanger
the solvency of a road the failure Of
which would he q misfortune to Mime
sofa.
Editorial in N. Y. Trlvcre Aug. 6.)
ybe experiment Of tie reputation of
railway tariffs tJ State Commissioners
is 1cu &c he tried in Minnesota under
specially favorable circumstances. The
first attempt Was o. ailnre. A single
Commissioner prescribed cast-iron
schedule Of maximum rates. to which
the railroad companies declared it i'm
possible for them to conform, and the
case was carried to the Supreme Court
of the State, where the constitutionality
of the law was affirmed, in decision
:ron which We commented fully at the
time. Bi::efexperience, however, show
ed in Minnesota, pc it doubtless will
show in other States, tits: the high
handed measures insisted upon by the
farmers, though they might be sus-
.a:..-G 3y the courts could never
be put into practice, and new law was
accorolngiy passeI uy the last Legisla-
ture, to 90 into effect on the first Of the
present month. Un1e: this Law, the
schedules prepared by board of three
Con.mmissioners are to be taken by the
court as pr:r'a ;facie reasonable. If the
companies fine tbs rates too low, they
are at liberty to go Into court and
prove their case if they can and it will
then be the da2ty of the court to COM
Pei inc Commissioners to amend the
schedule. On the part Of the railroads
VIC are assured that they. will try to ac-
commodate themselves to the new rates.
On the part Of the farmers we are told
that they do:not wish to reduce tolls be-
low what is Fair and reasonable, and are
| willing to pay the companies a proper
interest upon the capital they have in.
vested. So long as both parties retain
this just temper, the Minnesota expe-
riment will be exceptionally favored.
But at the outset we meet with the
great difficulty that inevitably embar..
rasses all these attempts to limit by
law the profits Of business enterprise.
Who shall ;dccide what is proper in.
tcrest upon the companies invest.
menus: Vino can tell WHAT their real
capital is? Here is a land-grant road,
for instance, which has been built with.
out any capital at all-paid for by sub
sides from the State or the nation.
Here is another road. whose stockhold.
ers have made enormous fortunes by a
credit moh;'ier cpera+;cc. He-e := a
third, when has drawn most OF It's con.
struction fund from the aid q anted by
towns ana :counJles along It's route
while 6 fourth has really been paid fol
in hard cash by the owners Of its stock
Obviously these different roads cannot
fairly be Subjected to the same rule
for a ratio If profit which would give
the shareholder IN the St. Paul & Sioux
C;t~ Be::load seven per cent. on his
investment woulo gi,e: e shareholder
in some credit mobilier road sevent,
per cent. The first step therefore to-
ward a settlement Of the transportation
question by the enactment of maximum
schedules nust be to discriminate be
tween real and nominal capital; anG
tn S will be found ty far the most
serious of the many difficulties will
which the problem is bese+.