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


roads north and south OF me.
That practically ii is all there Is about the
making OF the freight tariff, and all the
ever can be. The original railroad freight
tariff, probably, was made just enough
lower than the old rate of transportation by
wagon to take the business away from the
wagons. IL has been decreasing ever since.
The multiplication Of lines and the facility
with which the business is done, has worked
q decrease in the work of transportation, SO
that it Is done cheaper in this country to-day
than any other country in the world.
Member: DO you or not have certain
sum fixed in your mind that you want to
reach.
Mr.. Ripley: Not at ALL Never. When
we look at our figures at the end of year,
and see that-we have earned little more or
little less than enough to pay our opcrat-
ing expenses our interest and dividends, we
are little elated or a little depressed rs the
case may be. 1t does not make difference
In the rates whether we are earning mil
lion dollars month or FIVE hundred thou
sand, This Is perfectly frank statement
of the case. do not believe there is gen
tlcman in the room in the habit Of making
freight tariffs who ever considers what his
interest or dividend account Is.
Member: We heard n statement here
that the steepness of the grade, the cost Of
construction, and like conditions, and such
circum stances are regarded in making the
rate. Are We to understand that this Is not
TO be taken into consideration
Mr.. Ripley: Practically they are not Ia
ken into consideration. 1t is a perfectly fair
matter to take into consideration in fixing
maximum rates. The conditions of this
State is fair to take into consideration. Yet
rs.G IA
ride all those things. Whenever the com
mercial conditions are such that We cannot
get any more money from the State of Iowa
than we can in Illinois, we will take same.
Until we find ourselves absolutely unable 30
do it, is there any reason why thee State OF
Iowa by itself and Of itself should prohibit
our doing here what we can?
Member. No reason whatever.
Mr.. Ripley: In that matter, ism it per
fectly fair thing TO us?
Member: The fact that You charge the
same in Iowa as in Illinois?
Mr.. Ripley: do not think l said that
there were no other circumstances than that
entered into it. | said that was the first
consideration always. That phrase, what
the freight traffic viii bear" is quOJed
great many times, and has been made the
subject Of a great many sarcastic remarks;
but, after all, as | cOnstrue that, this is the
only manner in which railroad tariffs can be
made, and on which railroad tariffs can be
managed. II does not want to be taken as
meaning that you want to size up a mans
pile and see what he has got and take all of
it, or just enough of it so he can live. II
simply means there is burden to be borne,
a tax to he levied, and all that the railroad
committee, the freight men and everybody
else has TO do with it is to determine in
what manner ii is to be levied in order To
bring about the least possible Inconvenience.
That is why We charge more on silk than on
coal, although it costs the same money.
Member: Do yOu rs a railroad manager
consider the railroads as public Institutions
or do you treat them in your mind when you
make up the rates, and 50 on, as private cor
pOrations for pecUuiary profit?
Mr. Ripley: The Supreme Court has set
tied that matter. Whatever we may in fact
think OF the matter, il has been settled by
them. Whatever our individual opinion may
be as to the equity of the laws that regari
railroads as public corporations whenever
profits are to be determined, and private cor
pOrations whenever there are losses 10 be
borne il has been settled for us by the Su-
pTeme Court of the United States that we
are public institutions, and | think we are
trying as we'll as we can with our presenI
light to endeaYOr to doVetail the laws OF
trade into the laws Of the nation. 1t is hard
work. The laws of the State and the laws
Of the nation are unyielding and inneXible
The laws Of trade have constant lexibility,
and the two things do not mix any more
than oil and water do, Notwithstanding we
are making the best stagger at it We can,
and whatever we may think of the equity of
the thing, we have long ago given up the
idea that we had any rights in particular.
Member: Accepting that idea that you
say has been forced upon you that they are
public Institutions, would not this be a fair
basis upon which TO fix rates, that the net
earnings should not be greater than the ma
tural increase of wealth by other business
es, say the average rate per cent of other
interests paid, that you shonld not make
any greater? For instance, the farmer may
make three per cent of his investment for
the last year, and the general business man
or general population of the country, we
will say, make three or four per cent
Why should the railroads make greater?
Mr.. Ripley Taking for the last year?
Member: Any period of time whatever.
Mr.. Ripley: If the farmer made three
per cent last year, you want the railroad
companies profit to be three per cent?
Member: The average increase on wealth
was three per cent. Should the railroad
companies get more?
Mr.. Ripley: If that is a fair proposition
why not go back to the time the railroads
were started?
Member: We have more interest in the
last year than before.
Mr.. Ripley: 1t is not fair to pick ont any
particular year. We have had practical
failures in crops in this State for the last five
years.
Member: Then take the last ten years.
Mr. Ripley: Why not begin at the begin
ming?
Member: We must take some five years.
Mr.. Ripley: What l am trying to get al
is taking it from the inception of railroad
enterprise in this State, almost any other
enterprise in the State has been more sue
cessful than railroads have. When / went
to work for the Chicago, Burlington &
Quincy road, seventeen years ago, | could
buy almost any railroad stock in Iowa for a
song. / could buy the stock of the b. Il NJ.
for 5000. No Iowa men bought it. If the
owners Of that property had invested in land,
rather than in railroads, they would have
made more money than they did If you
want to take other industries in the State on
the present conditions, why not go back and
begin at the beginning?
Member: Answer it i'm the abstract, II
you don't want to answer il specifically as to
any number of years.
Mr.. Ripley: Whether the railroads be-
| ing public institutions should not be salts
| fed with the same return on their invest
ment that the average industry of the State
in other directions give?
Member: Yes, sir.
Mr.. Ripley: don't know that that would
be fair / doubt whether any gentlemen in