Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1892-11-02
A SIMPLE PROPOSITION.

Ihe Mo 'ey Now Paid as Transportation
Charges Will Pay For the Roads In
Sixty Years.
A great many two-by-four demo-re-
publicratic statesmen, who pride them
selves upon their abnormal brain devel-
opment, are prancing about the coun-
try and ridiculing the idea of govern
ment ownership of railroads. These
modern Solomons, with owlish gravity,
declare that it is ridiculously impossible
for the people to buy and pay for the
railroads. And yet it is a plain and
simple problem
To illustrate the simplicity of the
problem and the ease with which it may
be solved, we here reproduce portions
of an article which was very gener ally
published just about one year ago. 1t
will be noticed that it is the year 1889
the article deals with, but the same ar
guInents and almost the same figures
will apply to the year 1891, as the pop
ulation and the gross and net earnings
of the railroads have increased in just
about the same ratio. We quote;
AT the close of the fiscal year ended
June 80, 1885, the cost of the railroads
proper mot including real estate and
other investment0 and deducting the
amount of railroad stocks and bonds
held by the railroad corporations, was
something less than eight billion of
dollars When 1 say cost 1 mean cap
italization,' represented by stocks and
bonds held by so-called innocent pur-
chasers.'"
The gross earnings of the roads for
the year, in round numbers, was $780,
100000 and the net earnings, also round
numbers, was 1920, 000,000
To simplify the matter and avoid
lengthy argument, we will assume that
the people bought the roads, water and
all, for IS, 900, 900, 900, in United States
two and one-half per cent bonds, pay
able, at the option of the government
after ten years. 1t is to be understood
that freight and passenger rates are to
be Kept SO adjusted that no greater sum
than 1860, 900, 900 shall be collected each
year. This plan would call for an an
nual interest payment of 5000, 900, 600,
and an annual sinking fund of $3.50, ,000,
600. Now what do we find? The net
annual receipts are exactly large enough
to pay the 5000, 600, 900 in interest and
provide sinking fund of s12O, 200, 900
each year, which we will assume, for
the nonce, is swelled by savings effected
In operating expenses to an annual
sinking fund of S16O, 200, 900, amount
ing at the end of the first
decade to $1,000, 100000. being
the amount of the first in
stallment of bonds. Now note this
fact: While there has been no apparent
reduction in rates there has been a very
material actual reduction in rates
Upon basis of 60,0O0,OO0 population
for the fiscal year ended June 30, 1854,
the per capita cost of railroad facilities
for the nation was just SIG. For the
year ended June so, 1899, the popula-
ton would be, say S0,G09,00O, and the
per capita cost of railroad facilities St2
"a reduction of % per cent At the end
of the second decade, or twenty years,
another cne-ffth of the cost OF the rail
roads would be paid, and as the popula-
tion would be Increased to probably
100, 900. 00o, while the gross cost Of rail-
road facilities remained at 1850, 900, 900
the same as for the year 1SS9-the net
per capita rates would be $500, a re-
ductlon of 20 per cent, or a gross per
capita reduction for the twenty wears
OF 40 per cent, and SO on to the end of
fifty years,
In explanation of above it may be
stated that it will be readily seen that
the increase of population and conse-
quent density of settlement would be
accompanied by a corresponding in
crease of freight transportation and
railroad travel; so that, while the gross
amount collected from the people an
nually would remain the same, there
would nevertheless be steady reduc-
tion, year after year, in freight rates
per hundred or bushel. etc, and a cor
responding reduction in passenger rates.
trust that have made it plain that
the people could buy the railroads, even
at the price OF their present fictitious
capitalization, represented by stocks
and bonds, and yet not be more than
fifty years in paying for them, while
rates would be reduced "at least one
fourth the first ten years
Now, want to notice one other feat
ure of this programme. The accumula-
ton and setting aside of an annual sink
ing fund, amounting to s16G, 000, 900 each
year, would, if no provisions were made
to counteract the effect, retire from cir
culation during the first decade the
enormous sum of $1,000, ,O0o. 600. How,
then, shall we obyiate this difficulty?
we can do this--make OF the sinking
fund the vehicle or means for the in
auguration of the land loan system de-
manded in the platform of the peoples
party and also an easy method of In
creasing the volume of curr N ~, slowly
and conservatively, in accor.lIa@c with
the peoples demands,
How can we do this? Accord to both
gold and silver free and unlimited coin
age, continuing the present system of
issuing either coin. or gold and silver
certificates. at the option of the owner
OF the bullion. Then as fast as gold or
silver coin or certificates are received
and sunk into the railroad sinking
fund, pay out upon legal appropriations
United States full legal ten Ter paper
money in the same amount - take the
place of the gold and silver held to re
deem the railroad pIrch &c bonds,
which should be loaned to farmers
1pon their productive real estate, max
ing the loans become payable in nine,
eight, seven, six, five, four, three, two
and one year. Bear In mind, however,