Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1889-04-05

permitted for day. There is no state
IN the Union that nature oeSined 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 l deny the truth
OF the statement. 1t is not legislstion.
but dishonest construction and capital
lZatlon, and reckless and eXtravauant
management that brings embarrassment
and bankruptcy upon so many railroads
Bankrupt railroads we're as frequent as
now before any restrictive laws were put
upon the statute books of any state.
Paralleling lines, building non-pro-
ductlve branches, carrying on ruinous
rate wars, these have been the prolific
sources of railroad bankruptcy. 1t is
wonder that more railroads are not
bankrupt, built as they are by scheming
managers and swindling construction
companies - 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 4 st. Paul, and the Chicago
& Northwestern.
>'!'or five years, up to 1888 the Niilwau-
kee ~ ST. Paul paid an average of 3D.
per cent. on its common, and : per cent.
on It's preferred stock, and in addition to
this accumulated a surplus of S5,O36,OOO.
Bankrupt, You say?
For the same time the Chicago &
Northwestern paid 6 8 . per cent on its
common and 80 on its perferred stock.
and accumulated the comfortable sur
plus Of S6,492,O00. Bankrupt are they?
Now snpposng 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 a 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
a brighter side. While the producer,
the shipper, the poor railroad stock
holder may suffer, the railroad presi
dents, managers, ,superintendents, 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
are always full.
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 acCumuia-
tiOns of wealth suddenly acquired by any
class, as we have seen in this country
during the last quarter of century
through the carrier thus taxing all other
classes in the community.
D"Judge Howe, before the committees,
made vigorous objection to the prOvis-
ion in this bill that one ear 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-
inatiOn? AS well might the general
government give to the heavy importer
a lower rate of duty than to the small
one, or charge 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 500, as that the man who
ships 100 cars shall have a less rate than
10 ,,-hn cljT,c IN This fha
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
said on this subject:
"'When shipments are made by the
carload, where it is merely a 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 1t costs no more 10 ship corlOads
of freight between two stations of a
railroad whether they belong TO one
shipper or to ten shippers, whether one
| man ships ten carload or ten men ship
one carload each. There is no ground
for discriminating in favor OF the large
shipper
r1rr. President: Out of their own
mouths shall they be condemned.
Another. and perhaps the strongest
objection urged against this bill by the
railroad attorneys, was that 1t empowers
the commissioner, under certain circum-
staeces, to fix rates. This objection has
been entirely removed by an amend
ment, so it is not necessary to discuss
it. Under the bill as it now reads, no
rate can be put in effect until the rail
road companies have been heard, and
! the rate has been declared reasonable
by the courts. This provision is what
| President Miller called the colossal fault
I of the bill, but as ] have said. this OBJ
/ lection is now entirely removed.
The next greatest objection urged to
| the bill is that it prohibits charging
more there can he charged Just the
same, mind you) for shorter than d
/ longer distance over the same line in the
same direction. 1t is amazing that any
| man can be found who will deny the cor
/ rectness of this proposition. But it is
| said that there may be exceptions to
/ this rule. Well, if there is, they are
/ provided for in the bill IL in any case
the roads can show that this section
/ works hardship, they can be relieved
/ from its operations. But the exceptions
! will be rare. Can you scarcely imagine
! case where it is cheaper and easier to
/ go two miles than one, whether on foot,
/ horseback. or by train. What should We
I think Of laborer who should ask more
{ ,,,a Iny-'- r.-o-ly than for