The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-04-13
how THE PEOPLE ARE TAXED.

In Bulletin No. 172 of the Census Bureau.
the business of group No. X of tile rail-
road system of the United States is elabo-
rateIy detailed. That group includes all
the railroads in the States of California,
Oregon, Washington, Idaho and Nevada.
tie Territories of Arizona and Utah. ana
that portion of the Territory of New Mexico
lying west of line drawn from Santa te
TO FL PaSo The railroads are examined as
whole, no attempt being made to segre-
gate them, bat, as the total mileage of the
group is IL, l64 miles. the lions share of this
group belongs to the Southern Pacific sys-
tenn.
1t appears from the bulletin that the earn
ings of the group from all sources doubled
in the ten years from 1880 to 1889 inclusive
the amount for 1880 being 500, 9s3, 4S7, while
the amount for 1889 was Sol, 442, 2l9. This
does not look as though railroadng on this
coast was such a bad business, or as if the
people did not patronize the roads suffi-
clently, though the average charges would
stagger Eastern railroad economists, the
receipts per passenger per mile being 2.96
cents, and the receipts per mile per ton OF
freight being 3.16 cents. At such rates it is
no wonder that the companies have been
able to pay interest on their large funded
debt. The average charge per passenger
and per ton OF freight on the Eastern roads
is not far from one-half these rates, and in
some of the more thickly settled States it
is even less, as the census returns show. The
rates in group Y are not much higher than
they are i'll Louisiana and Texas, where the
population is sparse, and the commercial
movement light. In group III, which in
cludeS Ohio and Indiana, and parts of
Michigan, parts of Pennsylvania and part
of New York, the average receipts per mile
per passenger are 2.16 cents, and per ton OF
freight @. SO cents.
During the ten years ending on Deem
Der 81, 1889, the railroads embraced in
group y took in from all sources $3.50, 964, ISL
or S5405 per mile of road operated; and to
earn this money they spent S241. 92O. 3S7, or
S3034 per mile. They thus earned net
$3.50, GA, 1885, or an annual average of nearly
$4,000 600. Out of this net income they
paid SOP, 254, 2S1 for interest on bonds.
SIS, 465. 092 FOR rentals of leases. nearly
S12,000,000 for taxes. and spent 1888, $685.,
21S for purposes which are conveniently
embraced under the head of 'miscellane-
GUS" They received from 'other sources"
presumably land sales and income of tele-
graph lines, S29,599, 353. Thus at the end OF
ten years they had so, 556. 351 to the credit Of
livestock which WAS mainly issued as bonus
to the bondholders. and was in effect
water" But in order to reward these
stockholders. and TO get so much out OF the
fire, they paid dividends amounting to
S32 "a. 378 thus increasing their Indebted
ness. in the shape Of floating debt, by
S969l, 027. In other words, they taxed the
public Of the territory they trayersed enough
to pay interest-ehiefiy per cent-on the
whole cost Of the roads, and enough to
| divide $50, 100000 among stockholders who
had not paid dollar for their shares.
Here are reasons enough for the discon-
tent which is breaking cut in the shape of
rural organizati tons for the construction of
competing roads. and city organizations for
/ the reduction of freight rates. The roads
| whose chief purpose. according to Mr..
| Huntington, is to develop the Western
! country, may or may not be attaining that
purpose; but they are certainly developing
the fortunes Of their owners. Il does not
| often happen that capitalists discover
enterprises which pay per cent from the
start, and contain within them untold pos
| siblities Of wealth in the future. Nor does
| it often occur that communities meekly
submit to the taxation necessary to achieve
this result, without resistance.
The tons Of freight moved on the rail
roads of this group increased from 2,SS6, SIS
in 1880 to 10.555,073 in 1889. The number of
passengers increased from S.642, so in
1880 to 20, 466, 345 in 1889, The total earn
| iGgs from all sources increased from
| S29. 9S3, 4s7 in 1880 to SCI, Az, 219-more than
100 per cent in len years. According 10 the
census, the territory traversed by this
| group Of roads contains 2, 257, 600 people.
| Thus the taxation of there people for the
maintenance of these railroads, for the
| payment Of interest on the bonds with
whose proceeds they were built. and for
such dividends as their directors may
choose to pay either out Of money on hand
or from money borrowed, amounts to $50 a
head. Is it any wonder that people should
show signs of rebelling against such bur-
| dens?