New-York tribune., 1892-01-08
TREATMENT OF RdILROADS.

II is not TO be supposed that the people of this
country deliberately desire to rob anybody OF his
property. Of it's rghtful use or OF reasonable
prntits from it's use Tho crusade against the
railroads is not expainable on the theory that a
minority Of the voters in this country, or in any
large part of this country, are intentionally dis
honest. But because they have been led to be-
love untnnths. because they are not rightly
or well informed, because they see only tho
evidences of accumulated wealth resulting from
transportation of products, but do not see tho
losses or sacrifices which have been forced upon
many Transporting companies, they cast votes,
which, If not excused by ignorance would too
often be dishonest.
A statement has just been made by "The
Financial Chronicle Of the dividends paid by
railroad companies in the year 1891. 1t forms
part or an annual review which that journal
hbors TO make as accurate rs possible Tor the
benefit Of all who buy or soll railroad securities
and il dcscrvoly accepted with entire conii-
dcncc. It compares the dividends OF companies
for ton years and includes a number which have
nad some dividends within that time but do not
now. Among all the vast network OF railroads
numbering several hnndcd, which cover tho
Wcst and make agriculture possible Tor tho
millions that now nhabt that fertile region, only
eleven railroads are mentioned as paying dlyi-
dends on the common stock and four others aS
having dividends on preferred stock only. The
dividends paid by these roads on their common
stock averaged in s9l only - per cent, and
the dividends on preferred stock averaged n lit
tie moro than & per cent. But the mileage OF
them all is only a small fraction of the miloage
in the Western States
The South also has been rapidly covering itself
with a network of railroads, thereby enormously
increasing The prosperity Of the people and the
value of their land in farms and real estate in
towns. But ont of about 200 railroads at tho
south only seven arc mentioned aS paying dyi-
dcnds on their common stock and three on the
prcfcrlcd stock ony Until the records Of con-
sruction for the last year have been completed
it is not easy to compare the mileage on which
dividends are paid in the different sections with
that upon which no dividends whatever are paid,
but it is obvious that at tho South and at tho
West the proportion is small. From other sources
it is well known that there are some other roads
in each section, mainly branches leased or short
connecting lines, on which dividends arc paid.
I'm 1888. according to the Interstate Commerce
report these numbered about thirty re-
ceiving dividends on the common stock at the
West. and ton on preferred stock only, out of
over 800 railroads then reported, and at tho
South twenty y-nnc on common stock out Of
nearly 200. On about twO-hirds Of the stock
then outstanding in the whole country no diyi-
dcnds whatever were paid, and q large share of
this unproftablo stock was thai of Western and
Southern railroads.
IT is under such circumstances as these that
new laws are constantly proposed, and more OPP
prcssive regulations made by State authorities, in
ordor to deprive the railroads of part of the
revenue which they now receive Because only
q very few railroads ont of many are able to pay
fixed charges and have something left for own.
erS, it is proposed not only to take from these
what the owners now get, but in doing so 10
force into bankruptcy great number Of less
fortunate roads which are even now bmcly able
to earn fixed charges. This is done because the
voters in many States have been falsely informed
50 long and so pcrsstently in regard to the real
condition and earnings Of the railroad companies
that they appear to believe that the many are
even more profitable than tho fortunate few are
in reality.
Tho penalty for such injustice comes surely
and swiftly in tho refusal of capital to build
any moro lines OF transportation in regions whore
public opinion is so griovoJsly misled, and the
action OF governments so unjust Only about
1000 miles of road were built in 1891. Less
than one mile and half was built in the great
State Of Kansas twenty-cight miles in Iowa,
fcrty-four miles in Nebraska and less than fifty
one miles In South Dakota. \ very short timo
ago these States were being rapidly settled with
thrifty and enterprisng men, as new railroads
were completed by the thousand miles in
single year, rendering rich land accessible. A