The great West. [volume] (St. Paul, Minn.) 1889-18??, 1889-11-01
Who Paws the interest !?

Who Pays the Interest?
Mr.. VIM. K. Alderman was form
erly President of the Illinois Central
Railroad. He was summoned before
the Interstate Commerce Committee
of the q. s. Senate, and testified as
follows, in reference to the payment
of the interest on the vast blocks of
watered stock. 1t will be seen where
his sympathies are-with the rail
rOads-but the truth came out clear
ly and distinctly:
SENATOR PLATT.-When you speak
of fair rates, / understand you to
speak of rate which is reasonably
fair to the railroads. But is there not
an unfairness, after all, to individuals
if the one who only desires to ship
his freight short distance is made
to pay a very much higher rate for
the shipment than one who wants to
ship long distance.
Mr. ACKERMAN.-No sir, l do not
think that is true.
SENATOR PLATT.-The result of
that practice is that the man who
ships a long distance gets his bust
ness done for little or nothing, while
the man who ships a short distance
pays all the profits that therailroad
gets. Is not that it?
Mr.. ACKERMAN-That is a mere
circumstance which has arisen Of
late. do not think it is an element
that should guide you gentleman for
forming conclusions. The difficulty
to-day is through rates are too low.
You would, in my Judgment, confer
a great benefit, and would add to the
commercial prosperity OF this coun-
try, by raising these rates in some
possible way, if it can be done. In
other words, turn your attention to
these low rates, think the whole
country to-day, certainly the railway
interest of this country, is suffering
from low rates.
The CHAIRMAN.-Those low rates
are generally through rates?
Mr.. ACKERMAN.-Yes sir, through
rates. The managers seem to have
arrived at that point where they are
stretching out their hands for some
one to help them.
SENATOR PLATT.-It is feature of
railway management, is it not, that
the long distance freight pays very
little, if any, profits, while the short
distance freight pays the profit which
the company derives from it's bust
ness, if there is any profit?
LOCAL BUSINESS PAYS INTEREST ON
| BONDS.
| Mr.. ACKERMAN-NOtn necessarily
short freights. That is figuring from
any important terminal like Chicago.
1t is known generally among railway
men that local business probably
pays the interest on the bonds to-day
If it we're not for that, / think they
would suffer.
SENATOR PLATT.-The question ]
wish TO ashland it does not indicate
my opinion at all on this points
whether you think, as a railroad
man, it is fair to the general public
that the men who do a moderate
business over short lines of rail
road, should pay all the profits sub
stantially that the railroad compan
les derive from their business?
Mr.. AcKERMAN-To answer your
question directly, l should say not
l should not think it fair that he
should pay all the profits, but
think in truth he is only paying 6
fair profit on the business that il
carried for him.
Now add to Pres't Ackerman's
statement that the railroad bonds
are at a premium usually, that the
expenses and the interest are paid
Then why should not the loca
freights be lowered, say one-half, ane
the almost free transportation O
the rich nabobs raised a little. Fo1
the through freight is two-thirds o
the business.