The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1891-03-04

hibits of vital consequence to the people ?
Are they not of such importance 10 rail-
road employees az to prompt them to
study the subject with ever increasing
interest? Does not the average legislator
see that such statements are based on
colossal frauds-that where there is a
grain OF truth there is tor. of falsehOod?
The commissioners say the Illinois roads
paid dividends for the year 1890 amount
ing to $50. lO5,747, which is 2.0I per cent.
on 81, 769, 629, $50. Now, assuming that
the honest investment in the roads of Illi-
nois is for mileage of all tracks and sidings
$4,000 per mile, as We have stated, the
investment would be S42O,4S0,OOO. The
dividends paid, being SS6, los, 747, would
be at the rate OF 8.5 per cent.
This filching of earnings to pay
dividends on CGter is the colossal infamy
of the times. Il is robbery without one
redeeming incident, and it is robbery
under the sanction Of law, or In defiance
of all law, and in part, at least, accounts
for the millionaire plutocracy which
threatens the permanencs OF free inssitu-
tions.
Take the gafer out Of stocks and bonds,
eliminate the element of fraud which is
in the warp and wool of nearly every cor
porats enterprise in this land, and the
grievances of workingmen would be
hushed forever. In that event railroads
could pay literally for labor; labor would
be contented and prosperous. The i'm
provement of the condition of road.beds,
bridges and equipment would steadily
proceed and the public welfare would be
greatly promoted.
AS matters now stand, not only in Hi
nois but in every other state, the railroads
are required 10 pay dividends on loater,
and these dividends go to increase the
fortunes OF the few at the expense of the
many, and especially the wage carriers. In
the February arena Mr.. G. WooD DAVIS
discusses the question of lUdter in railroad
stocks and bonds in way well calculated to
arouse the attention of the country. Mr.
DAVIS places the actual cost of building
railroads in the United States at $4,000
per mile and says:
Available data does not admit of going
back of 1874 when 69,213 miles were III
operation, the cost of which, at $50. COO
per mile, being credited TO the builders /;
and adopting the net (tratficl earnings as
shown by Poor we find that in 1874, credit
ing each $500 with it's proportion Of
such earnings pro rata-and adopting the
capitalists theory that the water in the
capital is entitled to the same revenue as
the money part thereof-the earnings OF
the water ir the capitalization OF that year
amounted 10 S9l ,957, 500, being equal to
the cost OF 1905 miles of railway. Con-
tinuing such computations for fourteen
years and crediting the railway users with
the income of so much OF the railway
mileage as was from year to year built
from the tol S collected on the capitaliza-
ton in excess of $4,000 per mile, it ap-
pears that the users have within fifteen
years been nulcted, in the shape OF tolls
based wholly on. water, in the sum of
s., 4222, 5SS, 400, from " hich those in posses
sion have constructed 50, 752 miles of new
railway, leaving but 2,90l miles, costing
So. 03O,0O To have been built in the same
period from funds supplied by those claim
ing to own all the railways.
So far as our observation extends no
OnC Dlc ~ VIC letNlc d cCG
forth by Mr.. DAVIS. On the contrary,
they are admitted to be approximately
correct. Is it matter OF surprise that
the people are becoming FESTIVE under
such policy OF plumber? Is it not rather
a matter of profound astonishment that
the stupendous wrong has been borne so
long and so patiently by the peopleP
We see railroad corporations collecting
dividends upon water; we see them in
arms whenever any legislation is proposed
requiring them TO deal fairly by the pub
lie and by their employees, and We see
them fighting with unconquerabls zeal any
proposition requiring fair assessment of
their property for taxation. With fran
chises granted by the people, they thrust
the peop'e aside on all occasions and defy
legislatures.
The situation in Illinois is an object les
son, and the facts are we'll calculated TO
bring into deserved prominence the griev-
ances upon which the farmers alliance
bases hopes of success.