The Jackson standard. [volume] (Jackson C.H., Ohio) 1847-1888, 1874-07-16


be destroyed, and with them would go
the entire business prosperity of the
country. Such times as this country
will then see, will be something startling.
1t seems that this organization has so far
succeeded as to have either bought or
the Circuit Court of the Unit
ed States for Wisconsin. twill be known
in a few months whether the Supreme
Court has been secured to uphold this
great revolution, as it was in the case of
slavery
The following article, from the New
York Times. gives q glimpse of-what may
be looked for in the future:
THE WISCONSIN RAILROAD LITIGATION-vIC-
TORY FOR THE 7GRANGERS-EFFECT IN WALL
STREET.
Wall street was considerably excited
Yesterday by the intelligence of the de-
cision of the United States Circuit Court
of Wisconsin declaring that the Chicago
4 Northwestern and Milwaukee d ST.
Paul railroads must comply with the re-
cent legislation of that State reducing
the passenger and freight tariffs. Itwas
almost universally expected that the
United States Court would declare the
law unconstitutional and consequently
when it was found that the decision was
adverse to the railroad interests it caused
quite panic in railroad securities, which
affected not alone the roads particularly
concerned, but likewise all Western
railroads Under the influence of the
news Northwestern fell off nearly three
points, and the stock of other companies
followed. The suit was originally insti-
tuted by William Frederick Pike, Henry
r. Pierson. Moses Taylor, and the Farm
ers Loan and Trust Company, Bond and
Stockholders of the Chicago q North
western Railway Company, the Wiscon-
sin Railway Commissioners, George 81.
Paul, Joseph II. Osborn, and John w.
Hoyt, and Attorney-General Sloan, for
an Injunction to restrain the railway
company from complying with the Pot
ter act and State authorities from en-
forcing it. 1t came up in the United
sin, before Judges Drummond, Davis,
and Hopkins. In their prayer to the
court the petitioners set forth:
81. That the company, under authority
of law, had fixed rates of toll for persons
and property deemed just, which rates
were made in good faith, and that since
May, 1867, reduction of the rates of toll
has been made of twenty per cent. on
passenger rates and thirty one per cent.
on freight rates.
"2. That the revenues of the company
from all sources, under the rates of toll
fixed by it, have never been sufficient to
pay the necessary expenses of maintain
ing the road and its equipment in a
proper state of repair and efficiency, and
to pay interest upon bonds given for
w ta1 in
and pay dividend upon money actually
invested in the capital stock
"3. That the average amount of divi-
dends paid by said company since June,
1864, either in money or stock, was the
rate of '67-lO0 per cent. on preferred
stock, which stock amounts to $2l ,4S4,-
lab, and 75-l00 per cent. on common
stock, amounting to $l4, ,993 ,06O That
no dividend at all, either in money or
stock, has been made upon its common
stock since December, 1872, when the
dividend was 81 per cent, and no divi-
dend on the preferred stock has been
made since June, 1873, when the divi-
dend was 81 per cent.
"a That the total cost of the railroads
of this company is $65, ,090, 805 The total
earnings for 1873 were $l3, 1916, ,464 OF
these earnings at least 10 per cent. are
required to pay the operating expens es
of railways, leaving 81, IA, 938 applicable
to other purposes. The total debt is
$29 ,64l 800. The cost of road over and
above the amount of debt is So, AS, 300.
The total cost of the whole system of
railroads owned by the Chicago Il North
western Company is stated at $SI 1885,
S33. The total earnings of all the roads
operated by the Northwestern for 1873
were PA 4,055,033 Deducting 70 per cent.
tor Operating expenses, leaves 81, ,486,5lO
applicable to payments of rents upon
leased roads, interests, and dividends.
The interest paid during 1873 upon
bonds of the company was $1,000, ,8S2, of
which 81, ,335, ,f35 was in gold, The sum
left for dividends to stockholders, and
repairing the road and completing
equipment, and paying rents, was 81 $751;
! 728. The amount paid for rents in 1873
was 1925, ,423. leaving but $543, ,305 appli-
cable to dividends"
In the argument before the court the
counsel for the petitioners urged that
the rates fixed by the Legislature of
Wisconsin by the act of March, 1874,
will reduce the1srevenues 25 per cent,
which would be taken from the net earn
ings of the company. The result pro
duced might be thus stated:
Gross earnings, 1872. -s14 $50 Oss
Reduction, % per 3,73S, ,753
Gross earning under the Iaw.........s1 PIG ,275
Deduct operating expenses 10, ,46S,52S
Net earnings under the law............. s747,752
The debt of the company is S44, ,303, 500,
and the annual interest thereon is $3,-
004,7S3 The law of Wisconsin would
leave only STAT, ,752 of the earnings of
the company with which to pay that in
terest, and nothing for dividends.
The decision of the court denying the
Injunction sought is regarded by promi-
nent railroad men on Wall street with
considerable CONSERVATION. 1t is feared
that Lake Shore, Rock Island, and other
Western roads will be the next. object of
attack and the only hope entertained is
that the decision will not be upheld by
the Supreme Court Mr.. Russell Sage
President of the Milwaukee & ST. Paul
Lailroad, stated yesterday to a reporter
of the Times that it was impossible to ex-
aggerate the Importance of the decisioEA
If confirmed by the Supreme Court, it
would be disastrous not alone to the
Western roads, but to the entire railroad
interests of the country. Another gen
tleman, a member of a prominent bank
ing firm largely interested in Western
roads, said the effect of the decision
would be to hand over every railroad in
the West-and, for the matter of that, in
the East-into the hands of Legislative
strikers" well known bfoker COM
menting on the news said that the peo-
pie of the West would be Che greatest
sufferers if the decision should be up
held as it would divert capital from
that region, and cause capitalists to with
port of Western railroad enterprises
Manv German bankers holders of West