Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1890-09-24

tainly an outside figure, and it includes
not only the cost of all labor and actual
expenses paid out but also interest
upon the farmers entire property, not
simply his investment, but the current
market value of the land"
To this paragraph the following clip
ping from the Nebraska State Journal
is the farmers answer:
"a gentleman now a resident of this
city, formerly resident of Iowa, states
that in 1888 he sold 100 acres of land in
Crawford County. Iowa, for S25 per acre.
Since that time the Chicago, Milwaukee
& St Paul railroad has built line and
started the town of Buck Grove within
eighty rods of the farm, but notwith-
standing this he was offered the entire
farm the other day for $l5 per acre, max
ing a depreciation of 81, 600 in the value
in seven years He states that all
through that part of Iowa he can buy
improved farms for So to $40 less per
acre than he could get wild land for
seven years ago"
Mr.. Walker then proceeds to state
that SIN other words the farmer at
Lincoln. in receiving 1S cents per
bushel for his corn, gets more than he
is willing to allow the railroad company,
for he realizes full return for actual ex-
penses and interest upon not the first
cost but upon the present value of his
plant" But the present value of the
farmers land, as will be seen from the
above clipping, is much less, improve
ments and all, than the first cost of the
raw land and does not include the value
OF improvements made, so that Mr..
Walkers statement is misleading, to
say the least.
The farmer, although the most inter-
ested party. has nothing whatever to say
in reference to the valuation or price of
his farm, such value or price having been
gradually and continuously decreased,
until the depreciat on in value since
1873 has been at least so per cent This
depreciation has been caused directly
lin common with that of all other values,
both of real estate and of all produce
and commodities, by the insufficient
volume of currency and by the appre-
citation in the value of gold caused by
! the demonetization of silver and the
adoption of the single gold standard,
contrary to law by the Treasurer of the
| United States.
| And the same legislation, indirectly
has caused greater depreciation in
value of farm lands, as compared with
other values, because the fall in price
of all farm products has rendered farm
| ing Improbable and farm lands unde-
sirable property to own and pay taxes
upon. But the mortgage upon the farm
has not only not decreased in its face
value, but on the contrary, has largely
increased in actual value, because it
takes so much more produce of all kinds
to pay both principal and interest.
With these facts in view we will pro-
ceed to consideration of Mr.. Walkers
| plea that the farmers are not willing to
| allow the railroads sin terest upon not
| the first cost but upon the present value
| Of" the railroads. To one not aware of
the actual facts this plea may appear to
be plausible, but it is, in fact, specious
and sophistioal.
halIroad values represented as they
are by interest-bearing bonds and div
idend paying stocks) like farm mort
cages have wonderfully increased, mo-
in face but in actual values, by reason of
the increased purchasing power of the
money received as interest and div
was justly to bear the same deprecia-
tion from the same cause that the
| values of farm lands and farm products
| have suffered, then the rates of freight
upon all classes of farm produce should
have been lowered in the same proper
tion that the prices of farm produce
have fallen. But such has not been the
case, as freight upon corn was about the
same last spring when corn was selling
for fifteen cents. as when it was selling
at fifty cents. Moreover, railroad values,
unlike any other values, are largely
fictitious. Instead of the interest be-
ing based upon the principal, the amount
of existing principal is determined by
| Ou5 amount OF lnrarasE palu.
In other words, the supposed value of a
railroad is that amount upon which the
tribute exacted from the people will pay
q fair rate of interest, while the limit of
this tribute is affixed by the owners of
| the railroads, who charge all the traf-
fc will bear" It will be noticed at
once. that the railroads under
this arrangement possess privileges
and advantages that are not and can not
be accorded to the farmer. If the farmer
were not subject to the law of price and
to the fluctuations of values, but could
set the price of his products at such
figures as would pay him for his labor
and expenses, and interest upon his
land and improvements then he would
have no quarrel with or grievance
against the railroads But he can not
do this. He has to take what he can
get for his grain. while the gold bugs
have legislated away the value of his
farm and his lifetime of toll, as repre-
sented by improvements.
In the face of this state of affairs ii
is astonishing to find that the railroads
have never limited themselves to either
''the first cost or actual value of their
plant"
t.Poor's Manual for 1883 sta tes that
the cost in money of all the railroads in
operation did not exceed the amount OF
the Indebtedness. to-wit: So 7S7, 410, 72s
and that the capital stock of So, 7O6,
060, 5S3 was water, or in excess of cost oi
construction. And he puts the cost al
$50, 600 per mile, which is too high. The
Railway Age puts the cost of construc-
ton in 1889 at $40, 900 per mile Mr..
Blaine's article in the North American
. Review. in reply to Mr.. Gladstone, take;
another billion dollars from the cost TIC
the stockholders of the road. He says
s'If all the advances to railway com
panies, together'with the outright gifts
] by towns, cities, counties, States and Ma
/ ton be added together the money value
/ would not fall short OF 81, 00o, 600, 600. ;
| And it may be added that since 1888 the
! issue of fraudu ent bonds and watered
stock has more than kept pace with the
: building of new railroads Now the
) farmers demand
Z First-That the capitalization of tht
railroads shall be reduced (by elimina
a tion of fraudulent bonds and stock II
3 the present value of the plant, l. e.. cos
of construction and subsequent i'm