The Sedalia weekly bazoo. [volume] (Sedalia, Mo.) 187?-1904, 1890-04-08
JUST LEGISLATION NEEDED.


cago & Alton railroad, formerly gen.
eral superintendent of the NJ, K. d
T., the BAzoo is in receipt of the
twenty-seventh annual report of
President Blackstone, of that road.
As usual, the document states in a
clear and succinct manner the condi-
ton Of the Alton corporation and
gives detailed statement of the
operations for the year Is 9.
In connection with the report
proper, Mr.. Blackstone. under the
head of General Remarks" gives
his views 10 lengthy manner, on the
present policy of State and National
governments in the matter of con-
structing and operating railroads. The
practice, as INDUCED in by the
states for The past twenty one
years in employing railroad commiss
&. toner's to fix reduced m lximum rates,
and specializing contractors who have
been and are now authorized to con-
struct railroads, where they are not
needed and where there is no posslbll-
ity of enough traffic to be obtained t.
support them, is deplored as ruinOus.
Mr.. Blackstone shows cOnclusively
that if such means continue to be
practiced the result will be to bank
rupt a majority of the railroad cor
porations of the country and to ser
iously iujnre all.
Millions of dollars have already |
been lost to the shareholders cf the
older railroads, which were built
where the people needed them, try
the policy that has been pursued.
The dividing of the traffic between
the older lines and those more recently
constructed, which seems 10 be the
object of the government, has r>cultcd
in excessive competit on and re iuced
rates of transportation to an actual
loss to the companies.
Mr.. Blackstone is of the opinion
that the people generally, have mis-
understood the situation, in harping
against the railro ads and that a mis- |
taken policy has been pursued which
will ultimate in great injustice in
their names. He believes the public
to be manly enough to consider the
subject in friendly spirit as it is off
cred, al hough the record is not
pleasurable one to refer to.
1t has been suggested that the OBJ
ject of the State Governments in
causing competing railroads TO be con-
structed has been to secure reason
able rates for transpor:a:i N. A lit
tie consideration will assure that it
cannot be accounted for on that
theory. No railroad company has
ever claimed the right to charge un-
reasonable rates, and if they did the
government would, in all cases oftrial
before juries, have the advantage, by
reason of the popular prejudice
against the companies.
As to the profitableness of railroad
investments. Mr.. Blackstone shows
that in 1888 only oae-eighth of the
operating railroads in the United
States were able to pay dividends and
that about one-fourth of those paid {
less than four per cent. The total
amount paid to shar holders that year
Just equaled 0 62-100 of one per cent,
making reduction on the divIsib'e e
profits, as compared with 1887, of 12I 9
per cent. Regarding what the rail- !
roads do in this country toward the e
giving of employment, directly and u
indirectly, to residents, Mr.. Black o
stone quotes from Poor's Manual of Ii
1889, which shows that the total num- G
Der of men engaged in different cccu. G
pations by the railroads to be 1885, a
600, representing families numbering Fl
in the aggregate 12,25O,O00 persons, !
and that the daily payments to these "
persons amounts to nearly SO, 00O,- n
600. No other one industry N
in the world can be named 81
in comparison regarding the diffusion
of money and direct assistance in CIV N