The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1881-06-23

It will make the compensation specified in the
license. II tho license be called a contract.
that complies with oil that the contract requires
the public to do.
A railroad franchise il a valuable property
often OF great value--and ii costs the corpora
ton nothing. 1t ii gift by the public but,
IN making this gift. the public provides mode
Of ultimately having some degree Of compen-
sation, and limits the gift in snch manner A. TO
secure such compensation. II the increase OF
population and business shall bring thu cor
poration an income exceeding 10 per cent upon
its investment, the excess was to go indirectly
to the public by such reduction Of charges as
would keep the income down to 10 per cent
The public do not grant to the railroads the
exclusive ownership OF an unlimited increase
Of the profits Of the road, but claim, as the
share Of the public, that charges shall fall as
business rises, and that the corporation shall
be content with . lO-per-cent. income upon
their actual investment. The whole future Of
the country il not quit-claimed to the corpora
ton. The people are to have some share Of the
gains
Mr.. Atkinson has prepared tables Of figure
to show that under the management Of the
railroads there has been large increase III
the number OF tons carried and a decrease III
charges He selected for bis especial use the
statistics OF the Hudson River and New York
Central railroad, and gives tile business OF this
road for the decade ending Ill 1879.
From 1869 TO 1879, the tons carrled increased
from $50, &c., $40 to 2.295. s27 .3s7. or $50 per
cent, and the charges decreased from 52.3S to
70 cents, or 81 per cent. Yet even with this de-
crease OF charges, the net earnings were IN
creased 80 per cent. His own tables show that
this corporation, instead Of decreasing their
charges, 50 az to keep the income within the
limits Of Their chartsr. had an income largely
exceeding the amount agreed upon between the
public and the corporation.
This corporation has been very FESTIVE
| under this restraint, and unwilling to comply
with the law, by reducing its charged. Com
| modore Vanderbilt. with his accustomed bold
| ness, cut the knot which he could not unite.
| He watered the stock. It WAS only temporary
relief, for the watered stock sells for over 90
per cent. premium, and must be watered again.
In short, under no circumstances will this cor
pOratlOn share its profits with the pubc-in
other words, pay the agreed price for this great
franchise. The one or two hundreds Of mill
ions Of dollars which this family has acquired
is largely made up OF profits which were gained
by a nse and misuse OF this franchise, and
which are as justly the property of the public
a. if they had been taken into the state
treasury.
The deluge Of watered stock and the cloud
Of bonds forming the bloated body at which
this road is capitalized, and which it calls its
property, and upon which it exacts from the
public its vast income, is VIGOROUSLY more than
double the cost Of the road.
BY capitalizing its profits it has really capi-
talized It's franchise. The franchiserepresents
no investment, for II was free gift to the cor
poration- The value Of this franchise can be
measured by the profits which it brings to the
corporation. This value will continue to in
crease, and will be appropriated by the corpor-
ation il it can issue new stock fast enough to
absorb the excessive profits.
The franchise is the capital stock which the
public invested il this enterprise. In making
the investment the public stipulated for Ger.
| tain income on its capital stock-namely, all
| the income over 10 per cent. upon the money
actually furnished by the corporation. II A
and form partnership, and puts in val
liable patent right and b the cash capital, and
| they agree that b shall have certain part Of
| the profit, and A al the remainder, the courts
compel b to fulfill his contract and be content
with his share.
II this railroad franchise is a case OF part
nership between the public and this corpora
| ton, who shall enforce the agrcement2 If the
public is not the sovereign over this corpora
ton, then the creature is greater than its crea
| tor.
Mr.. Atkinson attributes the reduction of rail-
| road charges to the consolidation of the lines,
and gives very substantial reasons for this opin-
| ion. We agree with him fully in that matter,
and can see no reason why II the whole OF this
| system Of carriage was brought under the con-
troll and management of a single direction the
public would not be gamers. In forming seine
Of the existing consultations Of separate rail
roads lines have been formed OF several thou
aud miles in length and men are found as ca
pable to manage these lines as they were t.
manage the shult section, ont Of which this
new line was made. The argument in favor Of
consolidation is Mr.. Atkinson's argument. and
is shortly this-better service at less expense.
The proper head OF a system Of national
roads il the nation, acting in that matter as il
does in all governmental matters, by heads of
departments. The railroads can find men suit
able to manage the most extensive lines and
the most complicated business relations. The
nation can take its choice OF men. The public
has found no difficulty III managing the Post
Office Department with its $4,000 poe.oitices
In 4 recent report By the postoffice De-
partment the number Of letters, cards and
packages carried during the past year is stated
to be the enormous sum OF 2. 30, 234, 49,. 1t
carries and delivers the correspondence Of So
OOO,0OO people to every place in territory
larger than Europe. The public has found 10
difficulty in managing all the affairs Of the
public, including at one time the conduct Of
vast armies.
The purport Of Mr.. Atkinson's argument, that
the railroads should be managed by men Sc
lected by the roads, is largely made up OF as
| symptoms that ii the Government should I'M
dertake to manage the roads it might with
equal reason manage bake-shop, or farm.
or cotton factory. The falIacy OF this reason
ing is, that be loses sight Of the great fact that
the railroads are for public use, aud their real
estate was taken hy them under the law Of emf
nent domain. on the assumption tina. it was
| required for public use. They are not the pri-
vate and absolute property Of the corporal ton,
which il can use, or let remain unused, at its
pleasure. The same argument can be made To
| show that the Government could not have
gun factory, or an engraving bureau, or
| printing office. The Government claims the
right of dong for the people such business as
the people see fit to have the Government do.
1t il Government Of the people by the peope,
/ and what corporations can co for themselves
the people can do for the people.
The question Of the railroads is not mere
| question OF finance, or Of the law Of contracts:
| II belongs to the domain of statcsmansLip.
These corporations claim to own our ligl
ways, and that they can hold them in spite Of
anything which the people can lawfully do.
II England made such claims war would en-
sue. Whoever owns the highways OF coun
try is master Of that country. and has it by
| the throat. II these corporations own the
highways, there is little left in the country
worth owning.
The roads have acquired many millions OF
acres Of land, and are l2ndholders. They own
tracts Of land equal in area to some Of the
great empires in Europe. For large portion
Of these lands the roads gave nothing Others
they compelled the owners to sell at an APP
/ PA0irSAiiCHA. ~ 40 lhC lIisOIs VI lutbC
tons that the stockholders own the property
which belongs to the corporation. In many
cases the stockholders put no money into the
corporation. Bonds and land grants built the
roads, and the owners OF the charter or fran
chise divided among themselves the stock on
tins private property, paving nothing for
it. We heard something of this matter in
the Credit Mobilier disclosures. This stock,
costing nothing, is put up Tor sale, and, if
some person, like Jay Gould, buys it for one
fifth Of its face, he claims to own the whole
property, and to nave the same rights over il
which the farmer has over his farm. He
claims to own one Of the national highways,
BUILT on grants Of national property and ma
tional credit, and TO the building OF which the
stakeholder never contributed l cent Of his OWL
money. The English complain Of the unequal
distribution Of their lands as q great national
evil causing panperism and threatening revo-
luton. But no landLoder there holds such
vast domains AZ our Government has coded to
the railroads.
1t has been deemed wise in this country to
prohibit nonresident foreigners from beco,n-
ing land owners here. The stocks of the roads
are 70 some extent owned by nonresident