The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1892-12-23

| cent. or ten per cent. per annum, upon
| the actual value of their properties, the
| value to be determined by a compe
| tent appraisment committee, acting I'M
| der authority of the state. understand
| some such law was, and probably still Is
| In effect In the state of Pennsylvania. l
believe it worked quite admirably too, as
! the roads would expend their excessive
! earnings in improving the character OF
! their rolling stock, road beds and beauti-
! flying their depots and grounds, thus af-
! fording employment to labor as well as
| adding to the comfort aud convenience
| of their patrons. The coIonel's scheme
/ to have congress pass an enabling act
| empowering the states to issue bonds at
one per centum interest per annum. such
/ bonds to he deposited in the national
| treasury, In lieu OF which, treasury
/ notes 70 like amount shall be issued, Is
decidedly unfair, as compared with the
! law governing national banks (Which
comparison you Will observe Is made.
I The circulating notes OF banks are Sc
cured by United States government
/ bonds, direct obligation of The govern
ment. These notes are guaranteed by
the government, which they can afford
70 do with absolute safety, because they
are simply taking up one promise and
creating another. Ii they are compelled
to pay one obligation they Immediately
cancel the other. Furthermore. the gov
eminent requires that "A margin of ~ per
cent over the amount of notes issued
shall be kept on deposit, reference
always being had TO the face value of the
bonds. Thus if the bank deposits the
per cent bonds, the premium on which
=. - l,f.a iii ~.
per cent?, they would thus have 80 per
cent above their circulating notes tied up
as idle and non-productive capital. Nor
are these all the enticing requirements
of the circulation feature Of the national
banks. The banks are required to keep
constantly on deposit in cash with the
treasurer of the United States, without
interest, per cent of all the notes it has
in circulation, which fund is to insure
the prompt exchange with the colonel
of bran new crisp note, for the worn
out or mutilated one which he may have
in his vest pocket. The expense
of transportation, reprintiug, clerk
hire in asserting being always
paid by the bank of issue. There
is still another luxury in connection with
these circulating notes in which the hand
must indulge, and that is, to promptly
pay to the government every six months
tax of ! of per cent. or one per-
centum per annum on ali of its circulat-
ing notes. This little item alone would,
with one fell swoop" wipe out the col
onel's 1 per cent per annum on his pro-
posed issue of state bonds.
l am pleased to note that the colonel
is not IN favor Of government ownership
of railroads. He will doubtless agree
with US that if the government had the
money with which to pay for these roads,
that, judging from past experience as to
what they have always had TO pay FOR
what they have done, it is extremely
doubtful whether they could operate the
roads so as to give the public any cheaper
rates than they now receive at the hands
of the corporations. Then the delay and
ANNOYANCE which would naturally arise
in adjusting claims against the govern
ment in this branch OF their business |
fear would soon become wearisome.
This, ard many other Objectionable
features Of ''paernallsm," OF which the
loss to The state of taxes on the property
is perhaps not the most serious. have
been gone over SO often III the press and
elsewhere, that it Is useless to enumerate
them. Aud while the colonel seems to
share this view with US, to some extent
at least, his Duluth Galveston scheme
would seem TO indicate that he Is right
crosswise of the track. We do not agree
with him that the government created
the roads, nor that his enterprise or mine
has brought them here. TIE colonel
may have been here slightly in advance
of railroads, though | very much doubt
that he ever would have come had he not
felt pretty we'll assured that the roads
were seon to follow; nor would this vast
commonwealth have been brought into
existence scarcely but for the influence
of our railroads. [ also doubt very
seriously whether the roads have been
half so persistent in their opportunities
for the various counties, townships and
cities 10 vote aid to their construction,
as the municipalities have been to offer
their securities to the roads as an induce
ment to come their way.
Personally | nave no reason 10, nor am
/ disposed, to justify the roads in their
Determinations against Wichita and
central southern Kansas. Something
should be done as above stated TO cor
rect these evils, but we believe it can be
accomplished without confiscating the
railroad property, land payment III fiat
money is nothing short OF conflscatlon) !
or the government engaging in railroad
business in competition with the lines
now in operation. 1t seems 10 us that
Colonel JoceIyn's plan to foreclose the
mortgages upon the Union and Central
Padific systems Is rather inconsistent
with the teachings of that political party
whose cause he seems to spouse, our
understanding always, having been that
they were not specially advocating the
foreclosure 0f mortgages.
C. JORFS