The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1891-02-13

commissioners, it is unadvlsaole aI ChIs
time to reduce the revenue OF the railroads
of the state, to in any manner curtain Cne
ability of such railroads TO MAINTAIN IL not
improve the facilities at present furnished
to the public, or TO in any manner reduce
the number employed or wages of the
thousands Of employees OF railroads IN the
state.
1t appears from statistics published 2y
| the board of railroad commissioners OF the
state that the railroads of the state of Kan
sas are bonded to a less amount per mile
on an average than the total average
bonded Indebtedness of the system OF rail
road of which they are part, operated IN
other states and territories; and 1t is also
fact appearing from the reports that none
of the railroads in the state OF Kansas have
during the past two years been enabled,
even at the present rates, to more than pay
operating expenses, taxes, and interest on
the bonded debt, and in no instances have
any of the railroads in the state OF Kansas
earned sufficient amount to enable them
to pay any dividends upon any portion OF
the stock of such companies.
At the rates of fare and freight at pres
ent in force in the state of Kansas about
6S per cent of the gross receipts are neces-
sary to the payment of operating expenses,
leaving only 32 per cent for the payment
of taxes, i'm crest on bonded debt and other
fixed charges, and any reduction of the
earning capacity of the railroads either n
fares or freights, must of necessity be
taken from this 30 per cent over and above
the expense of operating the road, or re-
duce the wages Of the labOrers, as the cost
to the companies for given amount OF
traffic either passenger or freight, Is the
same, without regard to the amount re-
ceived therefor.
Kansas is large state, and of necessity
requires very extensive railroad mileage
in order to afford facilities for transporta-
tiOn TO the inhabitants of the different
portions of the state, and, as matter OF
fact has today more mileage than any
other state in the union except the state OF
Illinois, and this Notwithstanding the to-
tai population of the state is little more
than that of the principal city Of the state
of Illinois. This great railway mileage of
the state of Kansas with its less than one
and One-half million of populatiOn-ex-
ceeding, as it does, the total railroad
mileage of the state of New York; with a
population of nearly six millions, and its
vast natural and manufacturing industries
developed, and the chief city of the union
for foreign commerce within its borders;
and exceeding the mileage of the state of
Pennsylvania, with over five millions pop
ulation, and unlimited mines of coal
and iron, and its extensive manu-
featuring and agricultural industries;
and exceeding that of all the New Eng
land states combined, with population of
over five millions, being the manufactur
ing center of this country and II the con-
tinent-has been constructed at the solici-
tation of and for the benefit Of the people
Of the state; and although II Is perhaps
true that the mileage is now greater than
the business of the state demands, yet with
development and progress, the time will
soon come when the demands of the state
will exceed even the extensive railroad
mileage which il now possesses; and it is
but right and just that the railroad COM
pBnies which have constructed these rail-
roads should be permitted TO charge at
least sufficient rate to pay operating eX-
pc ses and fixed charges until such time
as the increased growth and development
of the country will enable them to pay
profit upon the investment.
The total earning capacity of the rail
roads of the state at the present time,
based upon the rates now in force. and the
business which they were enabled to do
during the past year, only enabled the
companies to realize an average net In
come of 4 4 per cent upon the bonded debt
alone, with nothing in the way OF divi-
dends upon the immense sums invested in
the capital stock of the several companies;
and as tins amount Is only trlne over
two-thirds of the legal Interest authorized
by the statutes of the state upon all
moneys due in the absence of contract, it
is unjust to the railroads to enact any
laws which will prevent them from paying
this small interest on their Indebtedness.
The interests of the railroads within the
state and the interests of the citizens of
the state are identical, and any legislation
which tends to cripple or destroy the one,
will of necessity result equally disadvan-
tageously to the other.