Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1874-05-13
The Railroad War In Wisconsin.

proportion as We had hoped for some good
results, do we regret the present aspect Of
the contest between the people and the rail-
roads 10 Wisconsin The Vice Presidents
to the two leading companies have caused
it to be telegraphcd over the country that
there will be no submission, thus re.aflirm-
ing the announcement already made to Gov.
Taylor by the Presidents Of the Northwest
ern and St. Paul. These powerful corpora
tons, under the advice Of Benjamin Il Cur
It's and VIM. NJ. Eyaris, take the ground
that the law is in violation Of contracts, aud
unconstitutional that to run their roads
under its provisions would render it impts-
sible for them to meet the interest on their
bonded indebtedness, pay any dividends to
stockholders, or keep the roads ia repair
IL looks a good deal as though the law was
passed in spite or revenge certain It is
that the rights Of the railroad companies in
respect to actual cost Of construction, ex-
pense Of operating and net ea.uipgs, were
neither consulted nor studied.
The law is said to have been drawn up
by persons Of very limited knowledge Of
the railroad business II is reported that
the rates Of freight aud fare fixed upon
and put into the bill, were the merest guess
work; that no examination was made into
the affairs Of the roads either as to the cost
Of construction and operating, or as to the
dividends paid upon the stock. 1t seems
to have been arbitrarily assumed that the
companies were getting rich-that they were
practicing extortion upon the public, and
that the reduction was demanded, while the
constitutonality Of the means to effect the
reduction seems to have been Of secondary
consideration At all events, there is nc
question that the law was the result Of hast
and immature action.
This Wisconsin law makes an arbitrary
classification Of the several railroads in tn,
State 1t fixed three rates Of fare ant
freight for three classes Of roads On tn,
Chicago and Northwestern, aud Milwake,
and St. Paul fares were cut down from
four to three cents mile, and freights wer
reduced in the same proportion. Beside
thus cutting down receipts twenty-five pc
cent. on gross earnings, equal to three pc
cent. The law imposes tax of one pc
cent on net income. Mr.. Mitchell, Presi
dent Of the Milwaukee aud St. Paul, in hi
communication to the Governor shove
from the business of tho company for tn
last ten years that the dividends on tn
actual cost Of the property have average
but six per cent, and that, should they sub
init to the reduction, the road would nc
pay its interest and any dividend whatever
The Chicago and Northwestern operate
five hundred and sixty miles in that STATE
The cost Of constructing that portion Of it
lines was S2s,0OO00O Mr.. Keep, tn
: President, states that the cost of operatiD
their line is sixty-eight per cent of gros
earnings Now, he says take out the pre-
. posed reduction and the additional tax in
posed and less than seven per cent. is le
. to meet the interest aud dividends, whic
is wholly inadequate. 1t is claimed b
Mr.. Keep that their charter and leases
contracts in force-contempla fair int
' est and dividends, and that no law is col
. stitutional which takes away that privileg
=, or impairs those contracts.
=" 1t now looks very much as though Il
~ railroads would continue business on the o.
~ basis, and in defiance OF the law. 1t VI
y probably take long time to test the co
~ stitutionality Of the law, as it is likely Il
" Supreme Court of the United States W
have to pass upon it before the question
" decided. But some good may come out
y it. No doubt many. railroads in this cou
;" try are extremely unjust and extortiona
in some of their regulations. There is
right and wrong in the premises. T
~ great question is before the people, a
~ this Wisconsin case, if it does nothing mo-
- may point out the method by which be
10 the rights of the people and the railro
u companies may be secured and protectC
W. The Wisconsin law will also impress up
the whole country the imperative necess
u Of thorough examination Of the VIII,
W question in all its bearings, aud of due
'0' gard for the rights of both parties, befC
Jus enacting any laws or regulations in tn,
cases, and then contests over unconsti
"' tional laws would be avoided.
ire