The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1891-01-20

element to take into consideration, but
nothing above hat.
Senator Har1is-Do you mean the
actual cash cost2
Mr. Wallace-No, the actual cash value.
Senator HarIis-No matter what it
cost? T..
Mr.. Wallace-No matter what it cost.
Senator Harris-Tne actual cash value
IS the proper element of consideration
Mr.. Wallac Yes sir.
STATE COMMISSIONER RODGERS, OF NEW
Commissioner Rodgers-Where COM
plant is made that too much is being
charged from a particular point, the
method in which our commission deals
wi b it is this: We take up the question
of the cost of the construction of the road,
We find out how much it has taken to
build it, how much sto * and how many
bonds ar out, and how much has gone in
good faith into the construction of the
road. We then take their revenues and
see whether those revenues are paying a
tair rate, after the costs of hauling and
han, ling are taken out, upon the cost o:
construction. If so, w reach the conclu-
sion that the general rates upon that road
ought not to be diminis ned.
Senator Platt-In dealing with this
question do you call the cost of construe-
ton" what the company represents the
| cost Of construction to be, or do you try
to get at wnat the road was actually con-
structed for2
Mr.. Rogers-We get at what it wa ao-
tually constructed for. What amount of
money actually went in and take out the
water"
COMMISSIONER o'DoNNELL.
Nj. O'Donnell, member of the board of
railroad commissioners, N. Y.-Railroads
are struggling to make 10 per cent. upon
dishonest capital The struggle is not to
I make fair dividends upon an hoL est cap
ital, but to force the commerce of he
county to pay earnings upon capital
friends of the railroads, just as they were
in the State of New York to the canals.
The lime will come when the people will
be the friends of the railroads, as they
have been to the canals, and do every
thing they can to make them cheap ways
of carrying freights and passengers over
and through the different States. The
p%rejudices against railroads will be dissi-
pated when railroads are honest, or are
made to be honest by bas:ng their earn
ings upon honest capital
Senator Platt-Supoose that the stock
of a railroad, or any other corporation,
falls to a point where it correctly repre-
sents the cost you say that some of these
! elevated roads have a capital largely in
excess of their cost-suopose the stock of
such railroad 81 ould fall to a point that
actually represented its cost or value, is
here any way you know Of that the
State can oblige the C ,mpany to reorganize
on hat bssis2
Mr.. O'Donnell-Probsbly not but the
Sta e can limit their earnings SO that 1t IS
q practicalre-orgGnizatio on a basis of hon.
est capital. They can reduce the rates OF
fare and freight.
Senator Platt-Do you think it ought
to be done2
Mr.. O'Donnell-Certainly 1 think
railroads should only be permitted to earn
q fair dividend on honest capital.
F. W. o EXPERT.
MI. Poor-The introduction of "Water"
into the share capital of railroads from
the enormou amount issued is the chief
cause of the condition of things so much
| complaint has been made, and which was
the occasion for the appointment of your
committee. After /" water " Is issued the
next thing is to make it valuable by the
imposition, of exorbitant charges upon the
tariffs passing over the roads issuing 1t
There have never been wanting earnest