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

III llulolS ny AllnOlS Nenti0i earnings lne
loss made by the operation of the Dubuque
4 Sioux City and the Iowa Falls Il Sioux
City roads, 50 that the Illinois treasury
company being he owner at present of these
two Iowa lines--the Illinois Central treasury
is not actually depleted by the operation of
the Dubuque u Sioux City and the Iowa
Falls 4 Sioux City roads.
The Iowa Falls q Sioux City and the
Dubuque Il Sioux City companies are cor
porate citizens OF the State of Iowa. liz the
ownership of these properties was within
the State OF Iowa instead of being in the
Illinois Central Company the case should be
treated exactly as It would be now, and
should be treated now, with the ownership
of this stock where il Is, the same as 1t
would be in the other ease. They are, as |
say, corporate citizens of the State. The
money is invested in the State. The re-
suits, be they good or bad, are made in this
State. Therefore the properties themselves
should be dealt with by the Legislature as
If owned and controlled by your citizens, in
which event your citizens here within the
State should not be made TO stand greater
loss than they have sustained heretofore.
These properties, especially the Dubuque
& Sioux City, are among the oldest roads in
the State. The Dubuque & Sioux City was
one of the earliest railroads built here. Ii
has along il towns and villages that are
twenty-five or thirty years old. IL has as
good local bushes rs any railroad In tho
northern part of the State and yet these are
the results. The Iowa Falls Il Sioux City
is a similarly well-located piece OF property.
have stated the results upon that and |
know of no way in which these results can
be changed and these properties be made
remuneratiye. In this connection, and be-
fore | dispose OF this branch of the subject
wish TO direct your attention to the fact
that had thought eight or ten months ago,
in order TO make these properties rcmunora-
tive to the owners, it would be
a judcious thing to construct branches to
gather up traffic and throw 1t over
The main lines of theSe'two roads, This was
in pursuance of the idea that volume of ton
mage, volume of traffic, is what must be OBJ
tanned. The Illinois Central Company de-
cidcd TO construct line from Cherokee TO
Sioux Falls, another from Sioux Falls TO
Onawa, another branch from Manchester TO
Cedar Rapids, and the work was entered
upon. The tracks were all laid before the
end of the year, and the roads are nearly
ready for operation. This was done, not for
the purpose of obtaining returns from the
local operations of these branches, not with
the expectation that the earnings upon these
branch lines in themselves and of themselves
would sustain the properties when built,
but because the traffic to and from them
thrown upon the existing line would produce
probably such volume of revenue as would
result in relieving the owners of the existing
old lines from loss in their operation. 1t
is absolutely impossible to achieve this re-
suit IL the rates that have ruled for several
years and that are ruling to-day shall be re-
duced. Should this obtain, these properties
must be relinquished by the present owners,
because the loss upon them will be so great
that Il is absolutely out of the question TO
take sufficient earnings from properties OPP
Grated in other States and apply them upon
the Iowa properties to keep them out of the
hands of the courts and prevent them from
passing through bankruptcy.
1t may be stated, probably without sue
cessful contradiction, that the trunk or main
lines of railways are the parts of railway
properties that prove remunerative to own
ers. The branch lines are the auXillaries or
supports thrown out to make q profitable
piece of railway property. They are the
arms and hands extended TO gather in for
the main trunk or to distribute therefrom
the volume of traffic upon which profit Is
made. But while it is true that the profits
are mainly derived from the operation of the
main stem, ii is not true that the main stems
always confer the greatest benefits upon the
people. The branch lines are those which
are most accessible to the great body Of the
public within any State in this Union. The
branch lines-the feeders-are the ones
which reach nearest TO the important inter-
ests Of the public. The trunk lines arc the
main stems which pass through the princi-
pal commercial centers. The great bulk Of
the population is that which Is reached by
the branch lines. Therefore, the true pol
icy, the sound policy, and comprehensive
one in developing any State, no matter
where it may be situated, is TO legislate and
so treat corporate property that these branch
lines, these auxiliary supports, will be CON
stiucted and greater accommodation be
given thereby to the large masses Of the peo-
pie. Without these, your main arteries
stretching across the State, or north or south
within it, and upon which q large volume Of
traffic moves, and along which cities, towns
and villages are strung, would be inferior
and bankrupt roads. Without these auxili-
airy lines you can have no general and uni
form development of all the lands and terri
tory within your borders. Without these
branch or auxiliary lines no State In the
Union can be brought TO par commercially
and financially and in population with
States that have these branch or auxiliary
lines extending from the main stem,
Legislation to-day which reduces the rev.
enues upon railway within the State will
put stop to the construction within the
State of these branch and auxiliary lines.
speak knowingly on this subject. During
the last six or eight months / have. placed IN
New York with the Illinois Central Board OF
Directors-and they are all men of large
standing financially, and of high integrity
surveys aggregating nearly five hundred
miles within the State of Iowa. These sur
veys and estimates and my reports upon
them are lying in New York. 1t is not a
question with them as to whether the lines
will produce tonnage and travel which, IL
passed over the existing lines owned by the
company in Iowa, would prove remuneratiye
and beneficial to the rest of the system. The
tonnage and travel are there; the tonnage
and the travel can be gathered. 1t is not q
question of that nature. tits not question,
Mr. Chairman and gentlemen, as TO whether
or not the money can be raised for construct
ing the lines. BY prudent and conservative
management for long series of years, the
company i represent is able to borrow money
at as low rates of interest as any other cor
poration within the limits of the United
States. Its credit and standing, financially,
are equal to that of any other. This Is not
a question in the case in point. The con-
sideration to-day is and has been for some
little time past, whether or not it Is wise
or prudent thing TO risk money in the con-
struction of lines within the borders OF Iowa,
where, by extreme legislation, 1t may be
wiped right out of existence. Gentlemen, L
am speaking now of the views | know to
have been expressed by those who control
g tIn la~ar Inn aipi