The McCook tribune., 1891-03-27
Cost of Railroads and Far""

Kansas congressman, is not wlthout
traits OF cunning or ability to argue
plausibly. He has stated with conslu-
erable force the case OF the ufllance
against the railroads. he says tha1
the alliance does not want to confscate
railroad property nor even to so reduce
rates that the railroads will be unaole
to run ut profit. He says that tnelr
plan is to make rates so that the rail-
roads can earn or even 5 per cent on
their original cost or, as he expresses
it, on their actual stock without the
water it contains.
A moments consideration shows the
fallacy of this proposition. A railroad
is as much entitled to make profit on
its present value without regard 10 us
original value, as farmer has TO make
II profit on his farm according 10 its
present value without regard TO It's
original value. As Il rule the Kansas
farmer bought his lana of the govern
ment at price never exceeding sou
an acre But few of their number paid
over $1.25 and the great majority got
their land under the homestead, timber
culture and other acts OF congress.
Their cases in this respect are exactly
parallel to those of the railroad
companies which obtained their
roads at the bare cost of laying the
rails across the prairie and building
few shanties for stations, or which. by
Il system of subsidies, built the ROADS
at little or no individual cost. IL would
be as fair to say that the farms should
be operated by selling the products at
such prices as would pay or ) per
cent on the original investments, as to
say that the railroads should be oper-
ated at such rate for fares and freight
as would pay 6 or s per cent on the
original investment.
In the case Of the farmer his land,
in the first place, cost him but little.
He used Il little money in constructing
buildings and fences and in purchas-
ing stock and seed for his fields; or.
perhaps, he had no money and bor-
rowed what he needed for his improve
ments; or he lived in a squalid way
until he harvested his first crops and
made his improvements without incur
ring debt. Then followed years OF la
Dor; seed time and harvest came and
went and crop succeeded crop. the
proceeds OF which were used in further
mprovements-in building houses,
barns and fine fences; in increasing his
focks and herds, in the purchase of
expensive farming implements, andI
probably in adding more Lard to his
original acres. In this way the quar-
ter-section. which originally cost him
5000, or which he entered as Il home
stead, has become worth from $50 to
$50 an acre, or from s., 900 10 $3 900
in cash.
Take the case of the railroad COM
pany. 1t cost but few thousand dol
lars q mile 10 lay the track and the
equipment was cheaply bought or per-
haps, rented. Perhaps the entire out
lay was repaid TO the projectors in
local subsidies or in the proceeds of
land grants. The road ran through q
sparsely settled, or entirely unsettled
country, and its revenues, even at this
enormous rates charged in early times,
did not pay its expenses. 1t became
bankrupt and was sold out under mort
cages and judgments. Possibly the
original builders had become ricn by
crooked practices, while the company
had become bankrupt. Perhaps the
new owners of the road obtained it for
q song. But, like the farmer VINO
no =
farm which had cost him but little.
they began to improve the road. They
laid steel rails in place of the old iron
rails which had become little more
than streaks of rust; they built costly
stations and erected great warehouses
At terminal points: they put on great
locomotives TO haul the trains across
the continent; they supplied passenger
ears that were marvels OF comfort: they
built extensions into new territory.
and, at the cost OF millions ana mil
lions of dollars. transformed the frag-
lines which at first existed
into vast and complex railroad svs-
TENS, covering belts of territory thou
sands OF miles in extent.
The doctrine that this railroad. which
has thus increased in value from SO
300 mile to $50, 900 a mile, shall be
entitled to make only such charges as
will pay dividends on its original cost
is erroneous. 1t is true that railroad
have been built out OF
1t is also true that the cost
Of the farmers Improvements has been
Dug out OF the soil which originally
cost him but little or which ne took as
a homestead from the Government.
The unthinking or unreasonable man
calls the difference between the origi-
nal and present value OF the railroad
stock, on which no dividends
should be paid. He might in honesty
call the difference between the orig
inal and present value OF his farm wa
tered property not entitled to earn Il
profit for its owner.-Chicago journal.