, 1874-04-07

the ono side and tho railroads on tho oshor
promises to take place In Wisconsin soon after
the 1st Of May, when tho railroad Laws passed.
by tho State Legislature tako effect. Thoso laws
establish specific rates on eaoh claaa Of morol,an-
disc on each class Of railroads Tho ratos of
transportation by tho carload arc arranged by
stretohos Of 25 milos,-that is, thore is ono rate
for hauling carload ~ miles, anothor rate for
the next 25 miles, and so On, difforont rate for
each 26 milea up to 200 miles. Tho law provides
for tho summary punishmont Of any railroad
agent or officer refusing to sell tickets or to re-
ceive and deliver freight at the ratos prescribed
BY tho act.
We understand that the Chicago Il North
western and the Milwaukee, l. st. Paul Compa-
niea haye beon taking legal advice In New York,
anu thas, after Aul GuuAuIe1eu tuu Iylruu-
tors, determination has becn reached. This
s to the effect that It requires 70 per cent Of the
receipts Of those roads to operate them in Wis
oonBin that tho rooont legislation will havo tho
effect OF reducing the receipts so por CON, that
ie, to tho cost OF operating tho roads TINT II
the value OF tho property is to DO destroyed, it
might aa we'll be destroyed BY dofying tho law
as BY oboying 1t and, therefore, tint tho Of
1oera Of tho roads shal DO directed to disregard
tho law. This will produce conflict at onco.
II d tickct-agent, refusing to accept tho faro
hxed by Inv, is arrested and punished, they pro-
pose to olose tho ticket-ofioe; and il = freight
agent is punished, to close the froight-ofice.
Tho trains will run BY. the offending stations
without stopping.
This conflict between tho railways and the
public is inevitable, and porlapa 1t may as we'll
begin in Wisconsin as in any other State. II
will eventually bring order out Of tho chaotic
disorder aud uncertainty which now prevail. It
will necossltato sottlement,-not compro-
misc, but a permanent settlement OF. tho relative
rights Of tho public on tho hand and Of transporta
ton companies on the other. Primarily the rail-
road companies assert that, In addition to tho
payment Of their operating expenses, they arc
entitled to profit equal to tho interest on their
debts and fair dividend on thoir capital This
seems entirely reasonable, but it nocossitatea IN
examination into facts. What arc Legitimate
operating expenses THO presumption ia that
the operating expenses arc managed with caro-
skill, and economy hut it may be rightfully
asked, Aro not the expenditures Of railway CON-
pnnies wasteful ana extrayagant. and might they
not bo reduced lnrgely7 In tho next place,
what does the capital stock representa- Doosi 1t
represent money actually invested In the roads
and expended in construction exclusively, or
does 1t represent stock dividends or distribution
OF money .nevor oarnod2 What do the out
outstanding bonds represent7 Do they ropre-
sent money borrowed and invested in tho roads,
or do they represent money that ought to
have been expended in renewing tho tracks,
building extensions, but which was diverted
from tho earnings Of tho road to pay
dividends on stock, both real and watered. In
some cascs IN Wiscopsln the railroads wero built
originally with cash and borrowed money and
then sold under mortgage for comparatively
inconBiderable Bums. THUS when railway cost
$7,0oo,o0o, and WAS bought by. the present
company for %, 900, 900, are tho public required
to pay dividends on tho ,000 600 actual cost; or
the s7,ooo.ooo. s1o,ooo,ooo, or $4,000, 900 Of
stock issued BY the new company When tho
railroads demand fair profits, they must bo pre-
pared to mike fair exhibits Of tue capital &C.
tually invested; they must DO prepared to show,
also, that their actual earnings fairly and hon
estly stated, md that their account Of operating
expenses doos not include wasto aud oxtraye-
gance, and is not 80 doctored aa to defraud tho
public. =:
Tho conflict will have another good effect. II
will disabuse tho managers and stockholders Of
railway companies Of tho idea that they arc irro-
sponsiblo corporations. They arc private cor
porations In one sense, but they are also public
corporations in the sense Of owing obligations to
tho public in exchange for the special privileges
thoy hold. The history OF auoh corporations is
not generally in their favor, 30 far as a1fording
any evidence Of consideration for the rights Or
interests OF tho people. Generally they haye
beon exacting and romorseless. The timo has
come when they ahould be mado to foel that thora
is some check and restraint upon them. Tho
Legislatures Of Wisconsin and other States, in
attempting to apply this check, may have drawn
It too tightly, or may not have used the proper
means. But the unrestrained power Of the
railroads and their unlicensed assumptions have
been overturned, and forever. Exactly where
the line Of prerogative is to be drawn ia to be
established by juat annl conflict 10 10 non il,-
pending in Wisconsin, and which threatens to
stop evory train on overy road In the State.
There is to be settle ment Of this whole cub
jeot, and, willis railroads must beleft FREQ enough
to be profitable to their owners, it must DO an
honest profit upon tue capital actually invested,
and roaulling from receipts honestly administer
ed, aH ahown by accounts honestly kept by re-
sponsib1e porsons.
CITY BUnDINGB.
The proposition that the City Government
shall rent the Honoro Block, corner Of Adams