Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1874-05-14

been watered and it is bell sved tina
the road could not be produced in it
present condition for sum less thai
lts cost or present capitalization q
this time. All agree that the com
panJ is entitled to a fair return oil
the capital invested.
| The railroads already constructet
have added many millions to tn,
wealth of the state, and perhaps M
class have derived so great benefi
as the farmer Many of the farm
and much of the farming land o
Wisconsin, worth from $50 to S10l
per acre, without the railroads would
not be worth to exceed $40 to S2u
Other branches of business and othel
industries of the state have exper
fenced similar benefit from the con
struction and operation of these
roads. Yet every one familiar witt
railroading in Wisconsin, is aware
that no dividends were paid for the
first twelve or thirteen years thai
the roads we're in operation and thai
they were unable to pay the interest
on their bonds, and nearly all passed
through the process of foreclosure
1t is only within the last ten years
that any dividens have bsen paid
on the stock of any of the roads.
The bonded debt of the companies
generally, bears only 7 per cent in
terest, and amounts to but little more
than bali tho actual cost ofthe roads
with their equipments. During the
last ten years this interest has been
paid and represents an income OF
seven per cent. on trife over one
half the cost of the property. Since
the organization of the Chicago, Mil
yankee & st. Paul railway company,
in May, 1868, there has been paid 10
cash dividends on it's stock, which
represents nearly one-half of the &C.
tual cost of the property, SO, 813, 257
72-100, which amounts to twenty
four per cent. only for the whole
time, ten and a half years, and is
equivalent to dividend of only 2
28-100 per cent. per annum on the
stock of the company. All the BAL
ance of the earnings over and above
these dividends aud payment of the
interest on the bonded debt, has been
consumed, in operating expenses and
improvements of the road and rolling
stock, and bringing the property to
its present state and condition, and
were necessary for that purpose. We
have, then, a. the results of the last
ten and half years existence of the
Chicago, Milwaukee & st. Paul Rail-
way Company, one half the cost of
the road capitalized in bonds which
has received seven per cent. per an
mum the other half, capitalized in
stock, preferred and common, which
has received 28.100 per cent. per
annum in cash, and taking stock and
bonds together, the actual return to
the investors has been, 4 46-10O per
cent per amman on the actual cost of
the property from May, 1863, to JAN
uary, 1874. In addition to this
amount, q small amount in stock has
been distributed in dividends to rep
resent that portion of the net earn
ings used in completing the construc-
tion of and improving the property.
These stock dividends amount to 2
$40 per cent. per annum with these
stock dividends added to the cash
dividends above named, at their
nominal value, and the whole amount
received on the investment for in
terest and cash and stock dividends,
amounts to only 6 per cent. per an
mum of the actual cost of the prop
erty. [ submit to your Excellency,
and through you to the people of the
State, whether this is more than @
fair and reasonable return for the
capital invested in these improve
mente. Is itnot far below such reas-
enable amount2 The best and most
careful economists admit that not
less than ten per cent. per annum
should be allowed on such invest
ments. Yet loss than one-half that
amount has been received in cash, by
the company, and the legislature now
attempts to assume the regulation of
our income and reduce it to a point
barely above operating expenses.
The company is now engaged in re-
laying it's road with steel rails, and
when that and other improvements
shall have been completed, it is hoped
that moderate and reasonable divi-
dends may be made on tho actual
cost of the road, and that our in
creased facilities may enable us TO
reduce the rates oarged tor passen
gers and freight.
The directors of this company have
at all times had due regard to the
interests of the public and desire
to furnish transportation at the low
est possible figure. and although not
receiving a fair and reasonable
return on their investments,
they have, for the last four years
prior to 1873, steadily reduced their
rates of freight and passengers from
year to year, as will be seen from
the following table showing the
charge for freight per mile, and aver
age per mile for passengers, for each
year from 1867 to 1873-inclusive
Freight per ton per mile. Passengers per mile
| 1867 &c.
| 1S6s-..............03 so100 3cs6-IO0
1869. ..........o3 1o-loO 5e92-l0o
| 1S70.-.....-......02 S2100 3cs5-lO0
| lsTl.-..............02 54~100 sc75. 100
| lS72.........-.....02 43-lo0 Sc54-IO0
| lS7S-...............o2 5o-lo0 Sc42-l0o
The law in question proposes to
reduce our passenger rates 25 per
cent. and our freight rates about the
same, thus deductiug from our pres