Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1891-09-11

earnings of the Oregon Railway and
Navigation company for the year 1890
stated to be $4,954,711.32
1t appears from the evidence herein
that the settlement, development, and
Improvement Of all the country reached
by the road has haap very ma GRnd ard
rapid. The population has increased at
a wonderful rate. The productions of
the country for shipment have vastly in
creased, the acreage Of titled land has
multiplied, the business Of the road has
increased. After harvest in 1890 the
quantity of grain to be shipped was so
great that the roads were unable for
months to move it. There existed a
blockade in Whitman and also in other
counties in the state of Washington
which became known far and wide as the
wheat blockade"
This road has been and is paying
road, a profitable investment; with the
vast volume Of business done by the
road and the rates charged, 1t cannot be
otherwise, and the company ought not
to be allowed by d system of leasing and
/ snb-leasing and artificial bookkeeping t.
make it appear otherwise. neither should
the producer and shipper be made to
suffer by reason Of the ingenuity Of the
/ system Of bookkeeping adopted by the
corporations.
It may be that the road viii not pay
/ all expenses, interest on its bonded in
debtedness equal, or nearly SO, to the
entire cost of the road with its equip
ments and in addition dividends at five
/ or SIX per cent. per annum on $24,000,-
| 10000, stock representing but little, if
any, money actually invested in the
/ road.
/ Neither this state OF affairs, nor the
fact that one company may have guar
anteed to another such result as this,
will in our opinion justify the charging
/ patrons of the road eXorbitant rates for
/ transportation. So far as this lease is
/ concerned, it may or may not be a bad
. bargain, but in either event the people
who are dependent upon the road for
! shipping facilities should not be made
/ responsible for it.
4 However, according to the statement
of Mr.. Thurston this lease was one the
! Union Pacific was anxious to make and
hold. They were only enabled to de
feat the attempts made to set it aside by
obtaining control Of q majority Of the
stock of the o. r. & n. Co. Thus ma
ioritv of the dividends are payable to
themselves. If the claim of the com
pany in this behalf be once admitted as
proper basis of adjusting tariffs, all
provisions for the regulation of com
MERGE are at once nullifed. A corpora
ton may be organized and capitalized
beyond its cost. then leased to another
company organized expressly for that
purpose, the lessee agreeing to pay a
4 given rate Of interest on this excessive
capital stock. And this state of affairs
would then become an excuse for charg-
/ ing excessive rates. If this would be
accepted as a justification for unreason-
able charges the interstate commerce act
might just as well be repealed at once so
far as It's practical effect on commerce is
. concerned.
The bonded debt of the O. r. & n. Co,
+ IS $16,643, 10000, the alleged value of
all its property, including town sites,
lands, stone quarry etc, S27071,374.49.
It will thus be seen that it has actually
invested S10,228. 274.49 for its $4,000
10000 of stock, and should, after paying
interest on its bonded debt only expect
to earn interest at fair rate on its act
ual investment, viz, on S10,228, 374 49,
If it be allowed to pay five per cent. on
the face of its S24,000.0 10000 stock after