Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1889-04-04

managers, and to the healthy influence
of senate bill No. 19.
"Another thing of vast Importance to
| the producer. In Illinois wheat is
| charged one rate and other grain lower
rate, on the principle that the more VII
liable the product the higher the freight
just as a less rate is charged for wood
and slabs than for lumber. In this
state all grain pays the wheat rate,
which is the highest, and farmers are
forced to pay the same rate on their
oats, corn, rye, barley and other grain
as on wheat. In this way they lose vast
sums out of every crop. And yet no
| necessity for legislation. Everything is
lovely. The people are happy, only they
don't know it.
Il say to you, Mr.. President, and to
the senate that such astate of things as
l have depicted here is without pallia-
ton or excuse. There is no valid rea-
| under heaven why the people of Wiscon-
sin should pay higher railroad rates
than the citizens of other states similarly
located. 1t is an injustice that will not
be tolerated forever. 1t ought not to be
permitted for day. There is no state
in the Union that nature destined should
have cheaper highways for it commerce.
Surrounded on three sides by water,
which always supplies cheap carriage, we
should nave the benefits of the closest
| competition and the lowest rates. In
stead of that we are sitting meekIy
down and submitting to eXtOrtions
against which all surrounding states
long ago made successful revolt, and
have compelled, as we should compel,
fair treatment at the hands of transpor-
tation companies.
"But we are told that the railroads are
having a hard struggle for existence,
and that restrictive legislation will drive
them into bankruptcy. | deny the truth
of the statement. 1t is not legislstion,
| but dishonest construction and capital
ization, and reckless and extravagant
management that brings embarrassment
and bankruptcy upon so many railroads.
| Bankrupt railroads were as frequent as
now before any restrictive laws were put
upon the statute books of any state.
Paralleling lines, building non-pro-
ductive branches, carrying on ruinous
rate wars, these have been the prolific
| sources of railroad bankruptcy. It is a
wonder that more railroads are not
bankrupt, built as they are by scheming
managers and swindling construction
com anies - capitalized at two or three
times their actual cost, and often man
aged 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
the two leading lines of the state = the
Milwaukee & st. Paul, and the Chicago
d Northwestern.
"For five years, up to 1888, the Milwau-
kee & st. Paul paid an average Of 81
per cent. on it's common, and per cent.
on it's preferred stock, and in addition to
! this accumulated surplus of $5,036,O00.
Bankrupt, you say?
For the same time the Chicago d
Northwestern paid 3-5 per cent on its
| common and 35 on it's perferred stock,
and accumulated the comfortable sur
plus of S6,492,OO0. Bankrupt are they?
Now supposing they had only paid in
terest on stock represented 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; lead
! ing director of the st. Paul road, said in
| The Milwaukee Sentinel: "Everything
perfectly satisfactory. The st. Paul
makes a good showing in comparison
with other roads in the north est. Its
condition has never been SO satisfactory.
In fact, it is better than it ever was
"What sad story of bankruptcy this
| is. How the farmer, struggling with
drouth, and chintz bugs, and low prices
how the manufacturer, with the con-
stantly 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
brighter side. While the producer,
| holder may suffer, the railroad presi-
dents, managers, superintendent, attor-
neys, agents, even the smiling lobbyists,
| they never grow poorer. The prospect
of bankruptcy never reduces their wages.
! The cushions of their palace cars never
grow rusty, and their 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 own
| ers of railroad property should be al
| lowed to continue to make profits based
| upon the original cost of their property
when owners of other property have to
| base their charges upon present values.
Never in the history of the world
| have we seen such enormous accumula-
lions 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 community.
| U"Judge Howe, before the committees,
made vigorous objection to the provis-
ion in this bill that one car shall be
| hauled at the same rate as a greater
number of cars. [ was surprised at this,
and cannot but think that the judges
zeal as an attorney, got the better of his
! Judgment as a man. Are we here to leg
| islate for the rich as against the poor?
Is capital to be protected and enterprises
discouraged? Is 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 monopoly and encourage discrim-
| nation? AS well might the general
government give to the heavy importer
a lower rate of duty than to the small
one, or charge a less rate for 81 900 worth
of postage stamps than for $40. As well
might the man who pays $1,000 in taxes
| have a lower assessment than the man
who pays 800, as that the man who
ships 100 cars shall have a less rate than
the man who ships 10. This was the
kind of talk the railroad attorneys fed
the committee on.
'Mr. Albert Fink, the great railroad
authority, so long at the head of the
consolidated pool, in his testimony be-
fore the United States senate committee