New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-04-12
CHANGERS AND RAILROADS.

GRANGERS AND RAILROADS.
Tho April number of The North american
Rereu contains ON article by Charles Francis
Adams, jr., on the riso and progress of the
Granger Movement. 1t treats this phenomenal
phase of politics rs already upon the decline,
and assumes that the time has already come to
consider its causes and effects, the lessons that
may be learned from it, and tho good or evil
which it is to bring forth. The two hypothesis
upon which the movement was founded are
stated and disposed of with clearness and JUS
tice The first refers to the general belief OF
the Western farmers that the railroads were
charging an exorbitant price for the:transmis-
sion of their produce to the seabOard The
popular statement that it took four bushels of
wheat to carry one to market was
hastily accepted as Indicating inordinate
greed and dishonesty in the carrier and cs-
pecial hardship to the producer. The farmers
entirely disregarded tho relation of bulk and
distance to price, and seemed to forget that 1t
always cost more to carry load oil cord-wOod
across the State than the wood was worth. Ii
there were no railroads corn could only be
wagoned 165 miles before the expense OF
transportation would equal its entire value.
The malgned corporations which the Gran
ger regards as the bane OF his existence
carry his corn ten times as far. The truth TO
which the farmers during this period OF excite
ment refused to listen is that there Is limit,
shifting according to circumstances to the dis
lance to which their produce car be carried SO
"a to leave them profit; and this limit de-
pends upon The state of trade, and not upon
the caprice of corporations.
The other fallacy OF all tho Granger speeches
is that which assumes that the extortionate
charges of railroads arise from the watering OF
stock The Illinois Changers, for instance,
contend that the railroad debt imitation of that
State amounts to $15, 900 pei. mile. There are
over $4,000 miles Of railroad in the State,
and the result, at an interest OF eight
per cent on the fictitious capital, forms
very distressing SUM to be taken
directly cut of the pocket OF the
farmer. But the statistical tables of the Illinois
Commissioners show that this state Of things
is purely imaginary. The aggregate cost of
construction of all the roads in tho State is
$3.50, OOO, 900, on which the net earnings re-
ported arc $3O,570, COOLIES than 8 per cent.
If we deduct the sum of $4,000 a mile for
the fictitious securities" the capital account
this the net earnings arc only seven per cent.
This grievance of the farmers, or rather OF their
self-appointed spokesman, thus vanishes into
mist. A still stronger showing is made or tho
moderate amount of net earnings derived from
the railroads of Wisconsin, Minnesota, and
Kansas. EvaDOrating the utmost conceivable
quantity of water from the stock OF the roads
of those States, they are shown to be earning
much less than the ordinary interest OF money
employed there in other branches OF business.
Mr.. Adams, having considered the two false
hypothesis upon which the movement was
based, admits two real causes of discomfort
the one excessive competition, and the other
the bad manners of the railway employees. We
think the second was introduced for the sake
of symmetry and is not founded on fact. In
scene he describes, if tho platform had
been full Of Changers when the bag
gageman refused to carry gcntlemans
portrnanteau, they would have been far more
amused than indignant. The aforementioned
cause, that OF excessive competition, with It's
consequent inequalities OF tariff and cOmbina-
tons of competing lines is of itself enough to
account for I'll the evils referred to. The
often-cted case of the contrast between the
competing lines from London to the Channel
and the single line from the Cham
mel TO Brussels is q clear illustration
of this matter. The two English lines have
come under the same control and charge double
the rates in force on tho Belgian road. The
result is that the English roads pay less than
four per cent on their capital, while the Bel
gian has almost paid for itself in
full. We have been building railroads
with more energy and speed than careful cal
culation OF their necessity or prospects OF sue
cess. The consequence is this rapid and con-
tinual alienation of ruinOus competition, In
the course of which passengers and freight are
carried for next to nothing, and close COM
binations, by which the railroads try to
recover some of the money they have lost in
such contests The remedy Of these evils is
only to be found in the healing processes Of
time. We all hope the country will grow up
to all its railroads. If it does not, the super
fuous railroads will perish and the people who
own them must suffer for their lack of judg-
ment. As to those forms of GrangerisIn
which lead to defeating just judges for legal
opinions TO passing laws of practical cOnlisca-
ton, to demanding that Congress shall build
free railroads from everywhere to everywhere
else, we shall be glad to believe all this pass
ing folly, not capable of permanencc among q
law-abiding people like the Americans.