The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1889-01-11
WHAT ABOUT THE RAILROADS.
"a Broad Spirit of Honorable Dealing"
Should Govern All Action Affecting This

Question.
The railroad problem was given an extensive
treatment, the governor holding that justice to
both people and roads was the great desderatum.
But it is not reasonable to expect, he said, that
the people will be satisfied with, or submit to,
tariffs made for the purpose of paying interest
or dividends upon a fictitious bonded indebted
ness or capitalization. That over capitalization
is wrong in principle and evil and misleading in
its effects, and that many of the prominent rail-
roads of our country have INDUCED in the prac-
tice, and deserve severe criticism and the inter-
ference of the law therefor, cannot be questioned
A widespread feeling is apparent that an adjust
ment should be made which would prohibit the
exaction of such rates Of transportation as are
necessary to pay dividends on stock issued with
out consideration.
1t should be conceded that money employed
To tSe rshts a as L invested in any other ind
vidual OF corporate enterprise. Neither can there
be any well-founded objection to an allowance
valuation Of railroad property by reason Of the
growth Of traffic, or through other causes that
may be the result of advantages as to situation
and Commercial business situated along the line
of railroad, to bear the burden, not only of pay
ing interest upon reasonable cost of construction
and proper maintenance, but In addition a sum
sufficienf to warrant dividends upon stocks that
do not represent an actual investment in the
property is unwarranted. Certainly, the statute,
of IN s rs S
- 49,
people.
In this connection, 1 wish to call attention to
owisase Of ana ps IN
with railroad transportation matters entities his
opinions to consideration 1t is evident that rail
road managers are fully impressed with the feet
that general sentiment prevails among the PEG
pie that railroads Should Be under the supervision
Of the stage
sion, and to the fesats sought to be obtained UNI
der the national law upoA which its operations
are based and to the fact that the good work be-
those compiler problems as to transportation and
competition that practical railroad men have
been unsuccessful in solving, he says, in effect,
commerce commission to supply fix the maxi
mum rate for transportation Of the various
classes of freight the difficulties attending the so
most If not entirely, disappear In fixing the rate
it is contemplated TO consider all competitive and
special conditions, and then to permit the rail
the maximum pamed There seems to be much
In this suggestion to commend, although in the
sndeavor to secure good results from the state
slider many causes that shoaid influence rates as
between specified points
w.atSx anS VEN ass FOX e after er
rights, the eonpissioners should place the burden
of proof on them In matters of dispute; that
pire it should see 10 it that the interests of the
people do not suffer. The governor suggested that
the time Of service Of each commissioner be in
creased to six years instead Of being limited to
three as at present: one member of the board to
be retired every second year. The present term
1t was held, does not give the commissioner suffi
cient time to become familiar with the great
problems he is called upon TO arbitrate. 1t was
also recommended that the salary be raised, as
leach member Of the board should be the peer of
any man in the state, in judgment, experience
and business ability" The governor concluded
the discussion of the railroad problem thus:
Let this whole question be met In that broad
spirit OF honorable dealing which seeks to fairly
consider the great interests at stake administer
ing justice far possible TO the railroads and
at the same time protecting the people from ex-
of