The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-03-22
Jeremiah simpsons Grievances.


The thing Of which the alliance congress
man of Kansas, Mr.. jeremiah Simpson.
complains chiefly is the cost Of transporter
ton. In the speeches which be has been
making during the last two OF three weeks
he has said comparatively little about the
silver or tariff question. but be has SAIL a
great deal about railroad rates. According
to his statement, the farmers OF the west
are poor because the railroads get all the
profits OF their crops.
He declares that he does not object to fair
rates. He is willing that such rates shall
be charged as will yield a legitimate interest
on the actual cost of railroads, but be OBJ
jects 70 rates that are necessary to pay in
terest on watered stocks. In a recent
interview he said: "Take our state as
an example. We have 5000 miles OF
railroad there. The roads cost $780,
100 600 in round numbers. and the Sc
curities issued to that extent are reasonable
and right; but the people WHO own the roads
have bonded them for $500, 600 900 and issued
500, 900 900 more of watered stock. We
who use the roads are really paying interest
on $500, OOO, 900 instead Of $780, 0OO, 900, as we
ought to-"
A well-informed railroad man could show
Congressman Simpson, probably, that his
figures are not entirely correct But, as
Stunning that they are, is it not fact that
no dividends whatever are paid on a large
part of the stocks Of Kansas and other west
orn railroads. The earnings of the roads do
not permit of the payment of dividends. and
oil 1I,o so sok,
comes from the control Of the roads, and the
hope thas as the country beco mes more
thick settled the net incomes OF the roads
will be greatly increased.
Bat there is undoubtedly great deal of
truth in what Congressman Simpson says
about the practice of issuing more bonds
and stocks'on railroads than the amount of
the actual cost of the roads. The amount
ottbe bonds and stocks issued on roads built
nowadays is much greater than the amount
paid for the construction Of the roads,
ami the roads are expected to earn
enough to pay interest on the bonds, and
dividends on the stocks. It is fair to as
sumo that il the indebtedness of a road rep
resented only the roads actual cost the rates
of transportation would be less, and the
farmers would have less reason to complain.
But how can the building of railroads for
speculation be preventedl The legislatures,
perhaps, could provide in the charters
which they grant that the indebtedness of
the roads should not exceed a certain
sum per mile. but it would be
difficult matter to get even
an appro ximately fair estimate of what
some roads would cost. And there is an
other thing which would have to be taken
into consideration, and that is that there are
very few companies that have the money to
build the roads for which they get charters
They depend upon selling bonds as the build
ing of the roads progresses. aud it is seldom
that the bonds can be disposed Of at par, or
anywhere near it. About the only thing
the legislatures could do would be to place
the construction of railroads under the
supervision of the railroad commissions. and
provide that no more securities than enough
10 build the roads should be issued.
The farmers. who are large element in
the legislature of every state, are much to
blame for high transportation rates. Act
ing under the belief that competition al
ways produces lover rates, they favor grant
ing all railroad charters applied for. The
consequence often is that existing roads are
paralleled, and their lus ne SO seriously
crippled that combinations and higher rates
become a necessity
In the west many Of the roads are now in
bad financial condition. They cannot pay
their fixed charges, and dividends
are not even thought Of. Retrench-
ment is the order Of the day
and thousands Of the men who were en-
ploysd on railroads are out Of work. In
our dispatches yesterday the statement was
made that in some Of the western states
railroad employees were forming organiza
tons to counterfeit the influence Of the
farmers organization upon legislation.
From this it is seen that classes other than
| farmers have grievances.
While there is truth in what Congress-
man Simpson says, not all that he says is
true. And it would be mistake to make
sweeping attacks upon all railroads. The
| grievance which he presents should bt
dealt with carefully aud wisely, and the
burdens of farmers should be lightensd
wherever they can be without doing in
| justice to other classes.
/
| PIE So. ,4.i,o. Mo+oN, rr.o.aa-