Audubon County Republican. [volume] (Audubon, Audubon Co., Iowa) 1885-1894, 1888-01-19

malignity OF a personal contest. III, under such
an official should consult simply
his feelings he might easily be tempted to
make truce with the enemy and thus avoid
an implaciablc conflict. But when such step
can only be taken at the sacrifice of honor,
when solemn obligation makes the conflict
an imperative duty, there Is no alternative, aud
the evil which he must attack is solely to
The main issue with which we are now con-
fronted concerns the mutual relations between
the people and the great corporations.
RAILWAY TRANSPORTATION.
While the transportation question has for
many years engaged the attention of our PEG.
pie, the enactment OF the interstate commerce
law by the last Congress has of late given II
particular prominence, and there is now wide
spread demand that the State Legislature sup
plement the Congressional act. That dealing
with questions SO vital to our welfare requires
both wisdom and courage, there can be no
doubt; but IL may safely be asserted that the
representatives OF our people will prove equal
to the task.
In order to determine what to do, we should
first know where we are and whittier We are
tending. Hence a retrospective view and a sur
vey Of our situation with reference to the sub
ject in question may not be amiss. The abuses
which have grown out Of our modern system OF
transportation came to the State simultaneous
ly with the railroads. For many years, how
ever, the great desire OF the people to secure
new roads caused them to overlook these evils,
and this leniency continued until a large pro
portion of the State was provided with trans
portation facilities. Then the demand upon
the Legislature to correct existing abuses in
creased from year to year, until In 1874 II could
no longer be refused. The Determinations and
extortions which had so long been practiccd by
the railroads resulted In the enactment OF what
is known as the Grange law, which established
a classification and Fixed maximum rates upon
all articles Of produce and merchandise. This
act was strcnuously opposed by the railroad
companies, reinforced by the representatives
from those parts OF the State which were not
yet amply supplied with roads and were be-
lcved by them to be injured by such lcgisla-
ton. The Granger law remained part OF our
statutes for four years and was during this
whole period resisted by all the forces that
could be marshalcd by the railroad companies.
The law was denounced by its opponents as
cOmmunistc In its tendency, destined TO ruin
railroad interests and hence to prevent the con-
struction OF new roads. 1t was contested In
State and Federal Courts until 1t was finally
declared legal by the highest judicial tribunal
of the Nation While the law was crude In
some respects II was nevertheless great
achievement, illustrating the power OF the pco-
pie under our system Of government to correct
evils even when defended by organized capital.
Failing to defeat the law In the courts, the
railroad managers again returned to the Lcgs-
friends, supported by members either inclined
to conservatism or representing localities dis
posed to hold out every possible encourage
ment to railroad construction, succeeded after
much augmentation, in having the Granger
law repealed aud the present Commissioner
law enacted In its stead. 1t has often been al
legged that the partial cessation OF railroad con-
structiun following the enactment OF the
Granger law was It's legitimate result. 1t will
be remembered, however, that the general
financial depression following the panic OF
1873 affected all interests, aud the railroad
enterprise was no more stagnant 10 Iowa than
IN other States where these alleged causes did
not operate. II has also been stated that the
law was changed In obedience TO demand OF
the people but this allegation Is likewise con-
trary to fact. IL Is true, the railroads had so
applied the law as to make II odious to some
localities, and had by their peculiar strategy
succeeded In pursuading some OF our best pub
lie men that IL was not adapted To all Interests
and often worked la Justice; yet majority OF
our people regarded 1t upon the whole us Just
and Wholesome, and desired an amendment OF
several OF its provisions rather than Its repeal
Nevertheless, when the Commissioners system
was adopted they conceded to u the right OF
an honest trial. Having once secured the right
to establish rates, they were prepared to accept
any legislation which promised an equitable
adjustment OF existing controversies. 10 en-
able cities and towns 10 secure new roads and
tion, laws were also enacted permitting them to
vote u tax to the extent OF Ave per cent on their
assessed value to aid In tho construction OF
projected roads. Under this law millions OF
dollars were donated aud many new roads were
constructed, and for time this new policy
seemed to accomplish It's purpose. Railroad
managers soon learned, however, that 10y ar
raugcnents among themselves, such us pool
ing, division OF territory, and division OF bust
ness, they could manage to maintain unrcason-
able rates. Owing to these various devices,
there is practically no competition as to rates
In the transportation business OF the State.
Occasionally one road will become dissatisfied
with the division of the spells and cut under
the combination schedule; but a treaty is soon
effected and the old rates are restored. The
charges for transportation ut present prevail
Ing in the State are by far too high, and bear
little or no relation to the cost OF the service.
Although steel rails can now be purchased for
onc-third Of the price paid for the iron rails
that were laid upon the roads built fifteen
years ago, and engines, cars and coal have de-
prcciatcd In value In nearly the same proper
ton, local freight and passenger rates have not
decreased To any perceptible degree. Railroad
companies should not be allowed to reap all
the profits growing out OF modern inventions
and the reduced cost Of cquipping and opcrat-
Ing their roads. With almost equal propricty
might wooden and cotton fabrics still be sold ut
colonial prices But railroad managers aver
edncss and the dividends earned by their stock
are not excessive, and that capital invested In
railroads on the whole enjoys no better returns
than capital invested in any other enterprise.
The stock and Indebtedness OF a road, how.
ever, is no indication Of the amount actually
invested in it, nor is the latter an indication OF
the actual present value OF the road. Mr..
Poor in reviewing the railroad earnings for
1883 affrms that II the fictitious capital could
be eliminated from their accounts, their sue
cess as investments would have no parallel.
The railroads of Iowa have received as dona-
tons from various sources value Of over fifty
million dollars. The tracts OF land granted to
them at various times by the Nation and the
State, and by counties municipalities and pri-
vate individuals aggregate an area equal to
more than one-eighth OF the total area Of the
State. The total amount OF money actually in
vested In Iowa roads by stockholders and bond
holders probably does not average to exceed
fifteen thousand dollars per mile, and the
thirteen million dollars OF net earnings which
are annually distributed among them would be
a fair profit upon twice the amount which they
have actually invested. The men who control
our railroads labor under a serious delusion,
inasmuch as they entertain an exaggerated
opinion Of the obligations under which they
have placed the public. They attribute to
themselves the unparalleled material progress
which this country has made, and claim the
wealth which by their agency has been accumu-
ldlcu US iutH TtWaru. lucy Tcasou tuut tucy
are entitled to the value OF the difference be-
tween various places in the prices Of commo-
dities, because they furnish the means for
making the exchange. 1t appears TO me that
this argument, II carried to its logical result,
would transfer the title to large share Of their
income to the heirs Of Mr.. Watts, the inventor
OF the steam engine. A similar reasoning
would also give to Mccormick all the profits Of
the reaper, and to Whitney those Of the cotton
gin. Owners Of railroads are no more entitled
10 perpetual royalty than inventors. For
certain period of time, perhaps as long as sim
liar privileges are enjoyed by patentccs, rail
roads should be allowed liberal returns for
their capital and enterprise, and IL at the end
Of such period 1t be found that similar roads
could be constructed and equipped at reduced
cost, then their rates OF transportation should
he proportionately reduced. But II is urged by
railroad managers that a reduction In their
rates would necessitatc reduction In the
wages Of their employees. Such reasoning
might apply, II those men were now paid
proper share OF the receipts OF the road. This,
however, Is not the case, Railroad employees
receive smaller percentage of the total earn
iDgs Of their employers than wage-workers Of
other occupations. They receive little more
than one-third Of the total receipts OF the com
panies, while the farmer, for instance, gives
One-half Of the produce Of his farm for its cul-
tivation. 1t Is but natural to suppose that
railroads deal as unjustly with their employees
as they do with the public, and the correction
OF one evil would be likely to ultimately result