River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1889-04-11

legislation. Everything is lovely.
The people are happy, only they don't
know il.
81 say to you, Mr.. President. and tc
the senate, that such a state of thing:
as have depicted here is without pal.
liation or excuse. There is no valid
reason under heaven why the people OF
Wisconsin should pay higher railroad
rates than the citizens of other states
similarly located. Ii is an injustice that
will not be tolerated forever. 1t ought
not TO be permitted for a day. There
is no state in the Union that nature de-
signed should have cheaper highways
for its commerce. Surrounded on
three sides By water, which always
supplies cheap carriage, we should
have the benefits of the closest compe
tition and the lowest rates. Instead OF
that we are sitting meekly down and
submitting to extortions against which
all surroundings states have long age
made successful revolt, and have COM
PEELED, as we should compel, fair treat
ment at the hands of transportation
companies.
but we are told that the railroad:
are having hard struggle for exist
ence, and that restrictive legislation
will drive them into bankruptcy. |
deny the truth of the statement. II is
not legislation, but dishonest con.
struction and capitalization, and reck.
less and extravagant management that
brings embarrassment and bankruptcy
upon so many railroads. Bankrupl
railroads were as frequent as now be,
fore any restrictive laws were put up
on the statute books of any state. Par
alleling lines. building non-productive
branches. carrying on ruinous rate
wars. these have been the prolific sour
ces of railroad bankruptcy. 1t is a
wonder that more railroads are not
bankrupt. built as they are by schem.
ing managers and swindling construe-
ton eompanies-capitalized at two OF
three times their actual cost, and often
managed by officials whose usefulness
is measured by their capacity to dupe
the public and cheat their competitors.
Bankrupt. indeed? when they are re.
ceiving interest on double their actual
investments. Let me read you the
figures from the sworn statements OF
the two leading lines of the state
the Milwaukee & st. Paul. and the
Chicago & Northwestern.
''For five years, up TO 1888, the
Milwaukee & st. Paul paid an average
of 50 per cent on its common, and Z
per cent on its preferred stock, and in
addition TO this accumulated a surplus
of $5,036.O00 Bankrupt you say.
FOR the same time the Chicago &
Northwestern paid SIS per cent on
its common and S-5 on its preferred
stock, and accumulated the comfort.
able surplus of $6,492,O00. Bankrupt
are they? Now supposing they had
only paid interest on stock represent
ed by money instead of by water, what
rate would they have paid?
This talk about bankruptcy is all
bosh, manufactured to control public
sentiment and legislation. Less than
three weeks ago. since the hearing be-
fore the committee, Phil Armour, a
leading director of the St. Paul road,
said in the Milwaukee Sentinel: Every.
thing perfectly satisfactory. The st.
Paul makes a good showing in COM
parison with other roads in the north.
west. Its condition has never been SC
satisfactory. In fact, it is better than
it ever was
What a sad story of bankruptcy
IL = l.. g., 80.
with drouth. and chintz bugs, and low
prices-how the manufacturer, with
the constantly decreasing value of his
wares-how the shipper, anxiously
watching his shrinking profits, must
sympathize with these bankrupt roads.
but every cloud has a silver lining,
they say, and even this dark picture
has a brighter side. While the pro-
Queer. the shipper. the poor railroad
stakeholder may suffer, the railroad
presidents, managers, superintendent
attorneys, agents, even the smiling
lobbyists, they never grow poorer. The
prospect of bankruptcy never reduces
their wages. The cushions of theil
palace cars never grow rusty, and theil
sumptuous larders are always full.
1.-The cost of construction of railways
has declined enormously in many re-
spects, and it is hard to see why the
owners of railroad property should be
allowed to continue to make profits
based upon the original cost of theiI
property when owners of other property
have to base their charges upon pres
ent values.
''Never in the history of the world
have we seen such enormous accumu.
lations of wealth suddenly acquired by
any class, as we have seen in this
country during the last quarter
of a century through the carrier thus
taxing all other classes in the commu.
nifty.
Judge Howe, before the committees,
made vigorous objection to the provis-
ion in this bill that one car shall be
number of cars. was surprised al
this. and cannot but think that the
judges zeal as an attorney. got the
better of his Judgment as man. Are
we here to legislate for the rich as
against the poor? Is capital to be pro.
tected and enterprise discouraged? l.
the law TO step in and allow the heavy
shipper to levy tribute upon the small
shipper? To build up the strong at the
expense of the weak. to foster monopo-
IL and encourage discrimination As
well might the general government give
to the heavy importer lower rate OF
duty than To the small one, OF charge
a less rate for 200 worth of postage
stamps than for $40. As well might
the man who pays 81 900 in taxes have
a lower assessment than the man who
paws 500. as the man who ships 10C
ears shall have u less rate than the man
who ships 10. This was the kind Of
talk the railroad attorneys fed the COM
mittee on.
Mr.. Albert Fink, the great railroad
authority, so long at the head of the
consolidated pool. in his testimony
before the United States senate com
mittee. said on this subject:
When shipments are made by the
carload. where it is merely question
of one or more carloads. no additional
cost is incurred by the railroad company.
- Whether these shipments are made
by one or by many shippers it costs the
same. II costs no more to ship car
loads of freight between two stations OF
a railroad whether they belong n one
shipper or to ten shippers. whether one
man ships ten carloads or ten men ship
one carload each. There is no ground
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