People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1892-04-08
THE RAILROAD QUESTION.

The North Dakota state alliance recently
adopted resolutions demanding the government
ownership OF Railways. A great number Of
alliance organizations have made similar de-
mand within the past year. Whether or not
the government should own the railways Is
merely business question and II ought to be
considered in q business way.
AT the close Of the war the debt OF the United
States was S9,573, 235l72 In 1888 the debt had
been reduced TO a,7Gg9!,SaO 1t consumed
nearly the entire energies OF the nation TO re-
duce the debt one billion dollars In twenty-five
years. The payment was only possible through
the medium Of constantly increasing tariffs.
The strain has been so great that taxpayers
feel the burden grievously when TO IL IS coupled
The other burden Of exiravagant administra-
ton. But with all its energy and all its re-
sources the United States was able 10 reduce
the principal OF its war debt but a little over a
billion dollars in twenty-five years, and then
the nations OF the world looked on in amazed
wondement
IN 1858 the common stock, preferred stock.
funded debt floating debt and current liabilities
resting on 10 90 miles OF the l521sl miles Of
railways then in the United States amounted TO
within fraction Of seven billion dollars. None
OF the bodies which demand government owner
ship Of the railways have as yet formulated any
plan whereby the government is TO acquire such
ownership In vague way it has been pro-
posed that stocks and bonds issued in excess Of
the cost Of RAILWAYS be disregarded in the event
that the government shall purchase, but the
securities Of the railways have gone into the
hands Of so many innocent purchasers that even
those who advocate such a measure would on
consideration, admit II y be impossible OF adop-
ton.
Assuming that within the past two years the
Increase in value by betterments and otherwise
Of railway properties has been such that the
seven billion dollar estimate OF | 50 may be
taken as at least not an overestimate to-day
then the government would have to increase its
debt by at least that amount II 1t were TO &C
qulre the ownership Of the railways All the
development Of our resources and all our natural
prosperity, unexampled in the history OF the
world enabled Us TO pay but a billion dollars OF
debt in twenty-five years and the people now
groan under the burden OF taxation. At the
same unprecedented rate Of payment, it would
require Isl years to pay OF the debt incurred by
the purchase Of the railways OF the country, and
the mere matter Of interest with such debt,
added to the present deb, coupled with the ex-
penses OF the government, would amount to
about two million dollars day.
II is argued that the profits derived from
operating the railways would much more than
counterbalance the interest charges and pro-
vide a sinking fund for the payment OF the debt
incurred BY their purchase In considering
this phase Of the question, those who believe
that the government should own the roads
should remember that in 1858 over 81 per Ger I.
Of the railway stocks Of the United States did
not earn one penny Of dividend and nearly II
per cent earned less than per cent The chief
argument for government ownership is based
upon the theory that rates would be greatly
reduced The statistican of the interstate
commerce commission reported that the total
income for 1888 Of the 10000 miles Of lines rep
resented in his report was ssOO,S9S, $40. Those
who demand government ownership would not
be content unless rates were reduced at least
one-fourth, which would reduce the revenue to
SOO,64,lS. The total operating expenses Of
the roads amounted to SjO7,79j3l5 This would
leave but little over S92,OOOOO) to pay the in
terest on s. 0J0 10000 Of bonds, amounting at
least to 500, 10000 This is based upon the
supposition that the government could operate
the railways as cheaply as they are operated
to-day, which is far from certain. II is more
than likely that the operating expenses would
be so increased that the net revenue would not
meet even the interes: charges on the amount
Of the purchase.
Government ownership Of the railways would
make railway employees government appointees
and the dangers which might spring up out Of
such a condition are so apparent that they need
not be specifically indicated.
The producers who believe government
ownership 10 be desirable thing are earnest
and sincere in their opinions, but they will do
well to carefully consider every phase OF the
question before they commit themselves to its
advocacy.-Kansas CITY Times, June q 1891.
At the close of the fiscal year ended
June 80, 1889, the cost of the railroads
proper mot including real estate and
other investment'O and deducting the
amount of railroad stocks and bonds
helds by the railroad corporations, was
something less than eight billion of dol.
lars. When l say cost" l mean "cap.
italization," represented by stocks and
bonds held by so-called innocent pur.
| chaSers."
While many of the roads paid nc
stock dividends or interest upon mort.
cages, the average rate of dividends
paid upon total stock issue, amounting
to Just about one-half Of the eight bill
lion dollars, was per cent, while the
average rate of interest paid upon the
bonded indebtedness was ~ per cent.
now want to take up and examine
this assertion, or claim, that the rail.
roads must necessarily cost the people
the sum of eight billions of dollars, be.
cause, forsoOth, that amount of stock
shares and railroad bonds are held BY
innocent purchasers" In the first
place the roads did not begin to cost
that amount of money. Poors Manual
has stated more than once that the rail.
roads did not cost to exceed thirty
thousand dollars a mile, or just one,
half Of their present capitalization.
c. Wood Davis, who is considered by
experts good authority on their cost,
and who>has superintendent the build.
ing of many roads, figures the cost Of
existing roads per mile as follows:
| Grubbing and clearing ....................s iOI
Right Of way and land damage. ........... $50,
| Earth work and rock cuttings ........... 4,5OI
Bridges culverts and masonry. 800
Ties-S,OOO.. ................. ZOO
Rails, spices bolts and spikes. 400,
Switches, side-tracks, cattle guards, road
roppings and fences ..................... i,l0C
Track laying, suriaclng and ballasting... go.
| Depots, wster-tanks, stock yards, shops
and terminals. ........................... $500
| Equipments ACKNOWLEDGEMENTS. 40
Engineering, rents, interests and contin-
| gencleS. ........................... 250
Total cost per $50 90
This on the existing 156,0S2 miles Of
railway June 80, 1889, was 8, $50, 246, OOO
We will presume that the government
first exercises its undoubted prerorativf