Audubon County Republican. [volume] (Audubon, Audubon Co., Iowa) 1885-1894, 1888-03-01

trans portatiOn of all the traffic offered by the
State Of Iowa, either ON that having origin
outside but destined to points within the
State, or that originated within, having des-
tinatiCn at points without the State.
The net earnings of all the railroads after
paying operation expenses and taxes, were
$l2, 1874, 322 90, equal to Az per cent on the
total investment. This includes the profits
on the business carried through the State as
well as that having origin or destination In
the State Ii speaks for itself, and demon
strates beyond doubt that the Iowa rail-
roads have not been, and are not now, able,
al the rates charged to make fair and reas-
enable profit on the investment.
After paying interest on the bonded in
debteduess equal to AZ per cent, the Iowa
railroads had left IS, 500, 1l7.00 to pay divi-
deHds and capital stock. This would aver
age 80 per cent dividends on the entire
stock.
The gross earnings per mile Of road in
Iowa for the year were 81, 761. In Illinois
where bankruptcy is the rule, they Were for
tie same period, 50, S95, or 90 per cent
greater. This shows, relatively, the volume
Of business per mile in Iowa, and this vol
ume is q more important factor in determln-
ing what are reasonable rates to be charged
for Iowa traffic than anything else.
The railroads in Ohio, Michigan, Indiana,
IlllllOlS dliu W lsCbllhlU ttIllGu lOI tnt ytdl
1856 an average of So, GS3 per mile, or 25
per cent more than those of Iowa. Those
for the New England group of States earned
gn average of S9,744 per mile, or l04 per
cent more than Iowa, and the States of New
York, Pennsylvania, New Jersey Delaware,
and Mary land earned an average of Sl3,0Sj
per mile, or IA per cent more per mile than
the Iowa roads earned.
The net earnings per mile Of road in Iowa
were 81 COZ. For the same period the aver
age net earnings per mile OF the railroads in
the States Of Ohio. Michigan, Indiana Hi
Eois, ard Wisconsin were 81, $780, or a per
cent greater than than those Of Iowa. In
the New England group of States, the net
earnings averaged IS, 740 per mile Of road, or
1913 per cent greater than Iowa, and for the
middle group Of States the net earnings
averaged So, f0i per mile, or 800 per cent
greater than those Of the State Of Iowa.
Ii can be readily deduccd from this show
ing that the revenues derived from the Opcr-
atiOns of the Iowa railroads are neither CX-
cessye nor unreasOnably high. On the con-
trary, by comparison with the earnings of
roads in other States, they are very low and
barely adequate TO give a small return on the
investment As these revenues are the pro-
duct OF the rates chargeable on the cOmmOd-
tiles offered for shipment, it must follow that
tiIcly destroying the small margin Of profit
now realized in operating the railroads. In
this connection, the Commissioners say in
their last report that very moderate Tcduc-
ton if the rates would wipe out the differ
ence between the gross earnings of the rail-
ways and the amount they now pay out for
labor in one form or another in the State of
| Iowa.
1t was my intention to express my views
at some length on the effect reduced reve-
nues TO railroads will have on the labor
question. take deep interest in the-wel-
fare Of the wOrSingmen. | grew up amongst
them, ate with them, slept with them, and,
in short, lived with them, and / know their
hopes, necessities and ambitions. | regret
that the time accorded me will not permit of
my entering upon discussion of the sub
ject.
The Commissioners are authority for the
statement. that decrease of twenty per
cent in the working hours and a CORE
spending increase of wages would go far
toward reducing the present net earnings of
the railroads to zero.
If rates are reduced, railroads will have to
| cut down expenses, reduce wages, curtail
| train service, etc. There were %, I61 en-
| ployes on the Iowa railroads, By the 1856 re-
| port, and they received wages yearly TO the
amount Of Sl3,GT7,7S0, an average Of about
| $500 TO each employe. Thus the railroads
| furnish subsistence directly to about $780,
| Geo people of the State, and indirectly, by
| the expenditure of $40, 000. 600 for materials
and supplies, TO probably about 100, coo
more. For these reasons it is an important
matter TO a Eleat body of the people of the
| State as to whether the present compare
| lively small earnings of the railroads shall
| be further reduced.
AS an evidence that the rates are being
| voluntarily reduced 10y the railroads rs fast
as the conditions and circumstances by
which they are governed VIII permit, IL is
| only necessary TO quote from the Commits
| siCncrs' report, which shows that Che aggre-
| gate rate per ton per mile of the Iowa roads
| in 1870 was over 100 per cent greater than
| it was in 1885. For the year 1870 1t was re-
| ported 2.42c per ton per mile, and for 1885,
| Lice. Reductions in the freight rates have
| taken place ON all the railroads. Since 1878
| the principal lines have decreased their rates
| per ton per mile as follows:
1878. 1885.
B., C. +. 81 n, r r., rate per ton
per ME. .............. SIC loc
Central lowe, rate per ton per milc.2 % 1.1D
c., b. X Q. II. r., rate per ton per
G., N. * St Paul, rate per ton per
mle,..... .........-..... ..,,..l.VS / 20
{. = n. W. Ry., rate per ton per
! mile. .................... lis
C., r. /. u 2. Ry., rate Der ton per
| mile ......';. ....,......',.,.l.o % l.Uo
Illinois Central, rate per ton per
nile ....:......... ......,....l. V9 Log
Sioux City * Pacific, rate per ton
| per mile. OBSERVATION-DISCLOSURES. Al l.l0
In like manner the passenger rates have
| been greatly reduced. In 1878 the average
rate Of fare charged each passenger was
35 per cent greater than in 1886 In 1873
it was 81 cents per mile; in 1856 it was
about go cents.
The railroad mileage is 100 per cent
| greater NOW than II was in 1873. The mile
| age then was i,t57. IL is now close TO {, 800
miles This shows that under the n0n-re-
strictive legislative policy, and the prudent
supervision Of the Iowa Railroad Commits
sioncrs, the railroad mileage of Iowa has
doubled in nine years.
Ii is shown in the report Of the Commits
siOners that for the year ending June 80,
| 1856, fifteen companies, having 1,7Si miles
Of road, or "a per cent of the entire mileage
of the State were unable TO pay operation
| expenses, interest and rentals. These eX-
| penscs exceeded the gross earnings by SSl4,-
| 1918.
Senator Finn: ] live in a rural commun-
| ity. We reason that the value ofall the pro-
perty we have depends upon its producing
power. You-educe the income producing
power Of the farmer and his property goes
down. lie does not make six per cent on
what he has got.
Mr.. Jeffrey: You and | think exactly
alike on that point. There is one little diff
ference between us. That is, you reason
from The standpoint that a railroad, do not
say all roads, buta railroad, can put up its
| ratCs 4 railroad cannot mt mn its rates