Morning journal and courier., 1891-02-16

the location of the lines and establish
union station in the suburbs of the city.
It has given Frankfurt magnificent I'M
ion station, but it was done by the issu-
ance of bonds of the several states, in |
proper proportions, to the amount of |
thirty-two million marks, or eight million |
dollars. It is doubtful whether any rail
road corporations would have ever issued
bonds to such an amount for such pur-
pose. The government directors conclu-
ded to create this additional debt for the
convenient operation of the railroads 1t
is not clear that the new station has added
anything to the earning capacity of those
roads Some of the old station properties
were sold for sums which have partly
reimbursed the states for the debt crea-
ted, but the Frankfurt case is fair il
which may be put upon the public by
government directors when railroads be-
come national property. Directors of
government railroads are much more care
less, liberal and extravaganza, with gov
eminent credit behind them, than are the
directors of private corporations.
It is extremely doubtful whether our
federal government has the constitutional
power to acquire any railroads either by
purchase or condemnation. An amend
ment to the constitution must be first
adopted. If such an amendment were
adopted the power of the federal govern
ment to acquire the railroads would be
limited by the provisions of the Fifth
amendment, which provides that private
property shall not be taken for public use
without just compensation. Taking the
railroads by exercising the power of emil
nent domain, therefore, involves the pay
ment of the appraised value for them
The appraised value would not vary ma
terialiy from the market value. That
means the payment of very large sum Of
money by the federal or state governments
before the railroads of the country
of all the railroads of the
United States is about 81, 900, OOO,O 900. The
floating debt one year ago was about
$400, 000,0 900. The par value of the stock
in existence is about $4,000, 900, 900. This
makes total capitalization of over S.
OOO, 100000. Much of the outstanding
stock is below par, but some of it is very
much above par. 1t is not probable that
any fair valuation of the railroad stocks of
the country would shrink the total to the
extent of Thousand million below the to-
tai par value. Upon this estimate the
government would, therefore, be obliged
to pay for the railroads of the United
States more than 100000, 06Q. Such a
national debt would be enormous. If such
an amount of bonds were issued, it is
doubtful whether they could be marketed
at less than five per cont. This would re-
quire an appropriation of at least $780,
0OO00 year to pay the interest alone
upon the debt created for the purchase of
the railroads. This interest charge would
be about $50, 100000 year in excess of
the average net earnings of all the rail
roads of the United States during tie past
e III. l.
nit to having the deficiency that would be
created by the ownership and operation of
the railroads made up by an increase of
taxation. It would, therefore, be neces-
sary for the government in the manage
ment of the railroads to increase the rates
| charged for freight and passenger trans
| portation. The west and the south would
/ not consent that rates for passenger trans
portation in the east should be less than
| those charged at the west and south. The
result would be that rates would necessari-
| ly be marked up in the east. The postal
| rates are greater than necessary to pay the
expenses of the postofice department in
tho northern and eastern states, but the
| charges are uniform throughout the csun-
try, and those sections where the govern
nent carries mails at profit are obliged
! to pay the expenses of the department. ir
those sections where it is improbable.
| If railroad rates are now low where there
| il water competition, the people dwelling on
the interior lines of road, where rates ar.
now higher, would insist upon equal rates
with those sections that are better favored
by nature. In those portions OF thu
country that have superior advan
tages of location, the people would
suffer on account of the demand
of other sections. Representatives to con
| rraos uou1d ha alanta6 7,poD icuuao Viii al
call for equal rates of transportation
throughout the whole country. The con
| troversies would repeat on larger seal
those which now take place between tn
wool-growers of Ohio and the miner
of western Pennsylvania on the one hant
and tho wooden and iron manufacturers 0
the Atlantic coast ON the other whenever
tariff bill is before congress for revision
The jobbery of river and harbor bill,
would sink into insignifcance when com
pared with the contests over equal o.
cheaper rates for railroad transportation
We should have either higher rates thar
now exist in all the populous sections o.
the country or increased taxation to max
up in the deficiencies created in the rail
road department of the government. New
lines would be built at government expens
in improbable sections in order that tn
electoral vote of a state might be delivered
in an important contest or that senators O.
the dominant party might be reelected
from a mountain state There would be
vast increase in government patronage, ant
if not political corruption at least scandal
GUS political influence enanating from th,
railroad bureau of the interior department
at Washington. We should have poorel
service at higher rates than have existed TO
many years. A form of government wher
all legislative, many judicial and nearly al
important executive officers are elected b,
the people, is the worst in the world unde
which to try the experiment Of govern
ment ownership of railroads.
1t is safe, however, for US to believ
that some generations will be gathered
unto their fathers in this country, befor
the fAnciful notions of Bethany are applied
to the railroad service of this country.
RELATIONS OF EMPLOYEES AND EMPLOYERS
But it is not necessary to wait for gov
eminent ownership before we have i'm
proved relations between the train service
of the railroads of the country and tn,
corporations which manage the roads
Within ten years the federal and state gov
ernments have become interested in legis
lation for the benefit of men engaged il
train service. Within twenty years, tn
leading railroad corporations of the coun
| NY Ao'O oesA0h Aaay oGooS GoWnIu Guo ILL
provement of the condition of their en-
ployes. One year ago the interstate com
merce commission devoted more space tt
the subject of federal regulation o,
safety appliances, than to any other sub
ject in their report. The president Of tn,
United States discussed this subject al
length in his last annual message The
state of Connecticut began legis
alton upon the subject nearly ter
years ago. The Master Car Builders
association considers the adoption Of
automatic freight ceuplers and the applica
ton of air brakes to freight trains as one
of the most important purposes of its e1
istsnce.
Ono yoar ago the interstate commerce
commission sent out circulars to eighty
five of the principal railroad corporations
of the country, making inquiries covering
several subjects, among which were ques
tons of insurance, guarantee funds, hos.
pital funds, benefit associations, lodging
houses, eating houses and reading rooms
and the system of appointments and pro
motions in the railroad service The
answers received from these companie.
show that many of them provide in some
manner for insurance, hospital or guaran
toe funds, and for benefit associations OF
railroad employees. A majority of the com
panies provide eating or lodging houses, OF
reading rooms for their employees. Nearly
| all IF than ot,ob wall