The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1891-03-13


Judges and juries-are supposed to do
nothing but execute legis. ative man
dates, but it is impossible for them to
/ wholly exclude the element of the arbi-
trary and irresponsible. The sovereign
Legislature has little to do with a court
in fits determination of whether given
accident shall cost the company $40 or
$4,000.
It must surely be against good public
policy to have securities such as stocks
and bonds in which the Government is
actually or constructively a maker be
subject to the extreme fluctuations
which characterize purely private Sc
curities.
! That the Government, State or Fed
eral, is, by its peculiar participation in
the birth and control of every railway,
maker of every railway stock and
bond, seems perfectly clear.
A National bank is not more closely
related to the Government, that is, to
the people, than is railway. There is
SUBSTANTIALLY the same obligation on
the Government to give both special
care and supervision.
FOR NOT EVEN PoTTAGE.
Again, the people have abandoned
birthright for not even pottage in per-
hitting railway companies to wantonly
4 pile up stock and bond obligations with
out reference to capital actually in
vested in the roads.
The right to regulate roads for traffic
| simply means the right to say what
profits railway investment may earn.
For the State to permit that invest
ment to be falsely stated, as in the case
of unnecessary bonds and stock not
pa d for, is to be put in the position of
having to choose between, on the one
hand, letting her people be bled, and,
on the other, slashing the values of
railway securities held by innocent
; third party purchasers. 1t is but just
to note here that there is not so much
water" in Western roads as is COM
monty supposed. Writers on railway
subjects are given to great exaggera-
ton on this point.
The excessive issue of railway stocks
stockholders and bondholders. 1t is
direct outrage on the public, in many
ways other than that suggested in the
preceding paragraph.
When the securities of road begin
to sag then the chief authorities call on
managers for economy at any cost.
Wages are cut and strikes ensue. Ma
chinists and track workers are dis
charged and set to tramping. The track
=. H.,
a way that can never be atoned for.
Rails are ruined and machinery is in
jured. The public suffers from in
creased danger TO life and property.
1t is not sentiment that makes every
railway superintendent broken-hearted
when he is ordered to neglect his track.
It is, rather, an absolute knowledge
that such economy is the rankest ex-
travagance and the boldest possible af-
front to the rights of the public.
THE OWNERS ALSO WRONG.
The blame attaching to owners of
railways Is more easily stated than that
attaching to the people. Some of the
facts about them are not commonly
considered.
ness there is usually shown the best
business Judgment, SO far as the operat-
ing end is concerned, while the financial
and proprietary end Is too often con-
Quoted in manner any thing but rational
No business can be more thoroughly
systematized and mDre safely and saw
ingly conducted than is the great body
of business in this country pertaining to
immediate and practical operation. In
nine cases out ten, where mistakes in
operation are made. they are not the
mistakes of the men in immediate
charge.
But the financial side of the railway
business is often run most wretchedly,
and this is why: The men who deter
mine rates of interest, amount of debt,
percentages of profit, etc, are not the
men who know what can be earned
The theory of small and compact
corporation business-a business which
all interested parties can know all
about, partnership, in facts applied
to business vast, technical, widely
scattered, complicated and confusing.
What does a railway stakeholder
know about the property he owns?
What knowledge has he on which to
base his annual vote for or against the
continuance of given dynasty? If
his stock is paying dividends, how does
be know but that it is by processes
which mean ultimate death to his prin-
cipal? If it is not paying, that settles
it. His proxy goes Immediately to
somebody-little matter who-just so
there be loud proclamations of honesty
and ability, or large and excellent
reputation.
UNPARDoNABLE GREED.
The greed of shareholders leads to
untold trouble. because it imposes on
those who represent them an unnatural
stimulus for making property appear to
yield in one way or period what il must
inevitably lose in another.
Railway owners have no more of an
inherent right to make money every year
than have tillers of the soil. When the
farmers fail to make money then it
would seem, in general way, time for
those who engage in transporting farm
products to go without profits.
OF course this rule must be subject to
many and great notifications, based on
the variations of industrial fortune at
various times in various places.
In this connection readers shouid re-