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

Wabash ................. 100000 i6s 81
a." pref............ $4,000 70 ! Is
Now here are twenty-nine roads,
among them eight or ten of the most
valuable roads in the United States. the
twenty-nine roads representing a stock
capital of 1914, 9O6,7 al, the stock shares
Of which, figured roughly, are worth
upon an average 81 cents on the dollar.
This must serve as an illustration Of
what | am driving at. The notorious
Missouri Pacific is only worth Sc cents
on thd dollar. From the same report |
gather the fact that Atchiscu, Topeka
Il Santa Fe stock was worth 81 cents on
the dollar, while Atlantic & Pacific was
worth ~ cents. These two roads rep
resent capital stock of S155. ZOO. 600:
while New York, Lake Erie & Western.
with a capital stock of $4,000, 900, was
worth 90 cents on the dollar; or the
three roads, with S24l, 100000 of capital
on paper, could have been bought by
private individuals for 53,OOO,OOO.
From these facts | assume that 4 care
full comparison and examination of the
records Of the New York stock exchange
for the five years ended December 81,
1890, willreveal the fact that the four
billions of dollars in railroad stock
shares is worth in cash not more than
s1,6OO, 100000. Andvery much the same
state of affairs will be revealed in refer
ence to railroad bonds. Why, then,
should the people, or government, be
expected to pay eight billions of dollars
for something private individuals have
bought and sold, over and over again,
for less than one-half that amount?
To simplify the matter and avoid
lengthy argument, we will assume that
the people bought the roads, water and
all, for 1000, 900, in United States
two and one-half per cent. bonds, pay
able, at the option of the government
after ten years. This is done in defer
ence to those who, like the Kansas City
Times, include the wilfrlly ignorant
holders of fictitious stocks and bonds,
in the class known as innocent pur.
chasers." 1t is, however, difficult Ia
comprehend why fraudulent paper
representing an outrageous swindle,
should be any more sacred than a stolen
horse or stolen watch. sympathize
with Cass county, Mo-. 1t is to be
understood that freight and passenger
rates are to be kept so adjusted that no
greater sum than SO6O,OOO,OOO shall be
collected each year. This would call
for an annual interest paw.
ment of S2OO,OOO,OOO, and an an
nual sinking fund of slGO,OOO.OOO.
Now what do we find? The net annual
receipts are exactly large enough to
pay the 500, 900, 900 in interest and pro.
vide sinking fund of $4,000, 900 each
year, which we will assume, for the
nonce, Is swelled by savings effected in
operating expenses to an annual sink
ing fund of S16O,OOO,OOO, amounting at
the end of the first decade to 81, 600. OOO.-
600, being the amount of the first in
stallment of bonds. Now note this
fact: While there has been no apparent
reduction of rates there has been a very
material actual reduction in rates.
Upon basis of GO,OOO,OOO population
for the fiscal year ended June 30. 1889,
the per capita cost of railroad facilities
for the nation was just SIG. For the year
ending June 80, 1899, the population
would be, say sO,OOO,OOO, and the per
capita cost of railroad facilities Sl9-
a reduction Of % per cent. At the end
of the second decade, or twenty years.
another one-ffth of the cost of the rail-
roads would be paid, and as the popula-
ton would be increased to probably
100, OOO,O 900, while the gross cost of rail
road facilities remained at 100000, 900
the same as for the year 1Ss9-the net
per capita rates would be $500, a re-
duction of 20 per cent, or a gross per
capita reduction for the twenty years of
40 per cent, and so on to the end of
fifty years.
In explanation of above it NAV be
stated that it will be readily seen that
the increase Of population and eonse-
quent density of settlement would be
accompanied by a corresponding increase
of freight transportation and rail
road travel; so that, while the
gross amount collected from the people
annually would remain the same, there
would neverth .less be a steady reduc-
ton, year after year, in freight rates
per hundred or bushel, ETC., and cor.
responding reduction in passenger rates.
/ trust that have made it plain that
the people cou d buy the railroads, even
at the price Of fictitious capitalization,
represented by stocks and bonds, which
as the Times says, ''have gone into the
hands of so many innocent purchaser:
that even those who advocate any Other
method would, on consideration, admit
it to be impossible of adoption" and
yet not be more than one-ffth of the
154 wears in paving for them. while