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


MINI, st. L...................3,l 10 per cent
:. Z. 1. Observation-Disclosures. (not glVen)
Nab. ST. l.. u P.................. l.SS per cent
The very best of these ON cost of road and
equipment-C. II. i. x Il. S.63 per cent, Q.
Is. d O., s.35 per cent does not seem to
show any very remarkable return, and 1t will
be observed this does not make any account
of stock and debt, simply the cost of road
and equipment.
Taking stock and debt we find the percent
age of net earnings to be:
N y. 81. j. ~ 4. Is, .............-2.-o per cent
=. M. y ~. P.................... .6Ia per cent
Z. NV. ........... .....,.... On per cent
r. a. =; l. 20 per eens
III. Central tayeraged) ...........5.4 40 per cent
MINI. " st. L........,... y 10 per cent
.. u " f....,..........s.... ...'Not repVr1eu
1t does not occur to me that these returns
slows an abnormal prosperity. think If
any enc will consider the question as he does
any other, he will conclude that there has
been most wonderful delusiou brought
about In the public mind with reference 10
the returns upon railway Investment. is il
not true that many other branches of bust
mess in Iowa pay much better than railway
business? If this is the most profitable bus.
mess why DO so few Of our people invest in
the stock Of our roads? Why is it that of
the so, 200 stockholders only 707 live in
Iowa, or one stakeholder in 43? Why il il
that the total value of the stock held in the
State is only IS, 6S3, $500, or one share in
10? Are our people blind to a good bar
gain when they see it? An examination
of the State Auditors census aud
other reports slow that our people
have many millions invested in
banks and newspapers, hotels manufactor-
les, ard other enterprises. If this railroad
business be indeed so profitable, how Is it
that our own people do not rush in for the
profit? Are we blind and dull? Is not bus
mess sense the best judge, and do not the
facts to which have called attention satisfy
the candid inquirers that there is as much,
or more, watered stock in the stump speak
er's and agitator's declaration that railroad
stock pays so much more than any other
stock, than there is in the railroad itselfp
Do not gentlemen i'm my hearing know that
there are many banks in Iowa paying annual
dividends Of ten per cent TO stockholders,
and adding yearly to an already hand
some surplus? think l know this is
true, and / do not believe your obser-
walton and experience differs greatly from
my own. If we are honest about this mat
Ter we will not be driven to admit that
only those who are content with small but
reasonably certain returns invest in railroad
stock in Iowa? Take the Chicago, Burling-
ton & Quincy railroad. 1t had in 1886 9,605
stock holders S,046 of these held not over
S1CO, OO0C0 each OF this S,046, 5000 were
women. and sos were trustees investing trust
funds. dare say, on examination, the books
of the other companies would show similar
condition of affairs as to stock. l do not
think it can be shown that the returns are
as large as commended But | now go one
step in advance and say that do not think
that exceptional returns are basis for the
detCl mination of reasonable rates. Toso hold
is to take away from railroads every adyaut-
age resulting from proper location OF line,
thorough equipment and the energy and
business management which goes out and
gathers business, which locates and builds
proper feeders, and does the thousand and
one things necessary to make business a
success. The Rock Island, the Northwest
EN-, ard tie Milwaukee, and the Burlington
roads, because OF the great volume of bust
ness, aIe enabled to realize fair, but not ex-
traordinary returns Now, what procured
that volume of business? Among other
things, sound Judgment in the location of
these lines, energy to lay out and build prof
| table feeders, courage to venture In the hope
Of gain where others shrink; tue willingness
| TO take the risk foresight to make, the
proper business arrangements; these and
other causes bring volume of business, and
| it is volume of business that brings returns,
Profits and dividends. Does it not seem
| plain that the method which proposes to re-
duce rates because Of a volume of business
| is a method which proposes to clip the wings
| Ct enterprise? No other business Is so
| treated. The tendency of such legislation
will be TO draw off all energetic forces
Cor 10 M mn rafr1A-
ment in being gibbeted because one has been
| energetic.
Such a plea, If scrutinized closely, will be
| found 10 be near akin to, If not altogether,
| cen munism. But some one will say, we will
| encourage every kind of business energy
| and enterprise, but railroads are public en-
| terprises, and the public has rightsJ A.
| ti0l them.
Let us see. With all our energy and re-
| form, we have never been able to surpass
| the wisdom Of the common law which de-
| mands of common carriers equal treatment
| to all, and punish extOrtiOn and discrimlna-
| tcn. 70 insure these things the courts
| have held that Legislatures have the powers
| TO fix reasonable rates, and because tho Leg
| islaturc has no superior, there is no limit to
| tie exercise of that power, even If it goes
| to the extent of confscatiOn. But the fact
that there is no Wis major to control does not
| in the least justify wrongful exercise a
| rightful power EsS--l
| Even Legislatures can do wrong, and
| while exercising powers granted anu con-
eeded. The moral limit on legislative power
| is that 1t must not allow more than reason
| able rates. and il must not impose less than
] reasonable rates. IL violates the law OF its
being, the purpose of its creation, as much
| in fixing rates too low as in allowing them 70
remain too high. What the intelligent, con
scientious legislator asks, is Il standard OF
! reasonable rates; and lie who, pointing TO a
| prosperous return resulting from the volume
| OF business, demands therefore a reduction
| OF rates, must be ready to maintain that any
| extraordinary prosperity in business results
| from oyer-charging. Under that rule the
farmer who by some extraordinary eXertion
| has managed 10 make sixty acrej of lan1 in
| potatoes yield him two hundred bushels to
| the acre, while his less fortunate ami less
| energetic neighbors have raised nleager
eroIs of potatoes If potatoes be worth ons
dollar per bushel, must have his potatoes re-
| duced in price To- twenty cents per bushel,
fer even then he will get the average return
| per acre. SO the grocery man, who, by re-
| maIkable energy, has secured great trade,
| must not havs the ordinary returns, for tliai
| would make his income too much. The r:il
would be nonsense applied to anything bni
| railroad business, and the only power the
| public has over railroad business, Is hecause
of its public character, TO see that Its rates
| are reasonable. But prices are not determ
| iped to be reasonable on account 0s the re-
ttrn TO some selected prosperous individual,
but upon and from an entirely different set
of facts.
.