Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1892-04-13

Texas & Pacific. ......... Ss, ,7I0,9OO 241k IL
Toledo A. A. & N. Mich. 5,3OO000 423{i IL
Union Pacific. ........... 6S, ,95S, ,526 691s 40
2; p, Denver Gulf w 31,l5s7O0 s8ss II
Wabash. sh................. "a, 900, 600 1914 81
pref............. 2s,OOO,OOO SO 10
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 S674, ,9O6, 741, 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 l am driving at The notorious
Missouri Pacific is only worth 66 cents
on thd dollar From the same report
gather the fact that Atchison, Topeka
&c Santa Fe stock was worth 81 cents on
the dollar, while Atlantic & Pacific was
worth ~ cents. These two roads rep
resent capital stock of 1855, ,OOO, 900;
while New York, Lake Erie & Western,
with capital stock of $50, 200. 900, was
worth 23 cents on the dollar; or the
three roads, with S241 ,0OO, 900 of capital
on paper, could have been bought by
private individuals for So, 200, 900.
From these facts / assume that care
full comparison and examination of the
records of the New York stock exchange
Tor the live years ended December 81.
1890, will reveal the fact that the four
billions of dollars in railroad stock
shares is worth IN cash not more than
s1,60O,0OO, 900. And very 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?
Having condemned the railroads for
public use, let the people pay for them
the average market price for the next
preceding five years, such price to be
determined by United States commits
sion of arbitration and appraisement.
But it must not be forgotten that
there are numerous valuable rights,
privileges and appurtenances'' that be-
long to and should go with the owner
ship of the railroads-such as few mil
lion acres of land, for instance.
To simplify the matter and avoid
lengthy argument, we will assume that
the people bought the roads, water and
all, for IS, 600 ,eoo,eeo. in United States
two and one-half per cent bonds, paw
able, at the option of the government
after ten years. This is done in defer
ence to those who. like the Kansas Citv
Times, include the wilfully ignorant
holders of fictitious stocks and bonds.
in the class known as innocent pur-
chasers." 1t is, however, difficult to
comprehend why fraudulent paper
representing an outrageous swindle,
should be any more sacred than a stolen
horse or stolen watch. 1 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 1880, 900, 900 shall .be
collected each year This would call
for an annual interest paw
ment of $500, 600, 900, and an an
nual sinking fund of S16O, ,OOO. 600.
Now what do we find? The net annual
receipts are exactly large enough to
pay the 5000, 100000 in interest and pro-
vide sinking fund of s12O, ,OOO, 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, ZOO, 900, amounting at
the end of the first decade to 81 900. .O00.-
900, 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, 0,000, 900 population
for the fiscal year ended June 80. 1889.
the per capita cost of railroad facilities
for the nation was just s16 For the wear
ending June 80, 1899, the population
would be, say 100000 and the per
capita cost of railroad facilities s12-
a reduction of 25 per cent. At the end
of the second decade, or twenty years,
another one-fifth of the cost of the rail
roads would be paid, and as the popula-
ton would be increased to probably
100,000,000, while the gross cost of rail
road facilities remained at 5000. .OO0. 600
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 Der
capita reduction for the twenty wears 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 conse-
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 paople
annually would remain the same. there
would nevertheless be a steady reluc-
ton, 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 fictitious capitalization.
represented by stocks and bonds, which.
as the Times says, ''have gone into the
hands OF so many innocent purchasers
tnat even those who advocate any other
method would, on consideration. admit
1t tc be impossible of adoption" and
yet not be more than one-fifth of the
lo4 years in paying for them, while
rates would be reduced ..at least one
fourth" the first ten years.
Now, l want to notice one other feat
ure OF this programme. The accumula-
tlon and setting aside of an annual sink-
ing fund, amounting to s16O, 200, 900 each
year, would, If no provisions were made
TO counteract the effect, retire from cir
culatlon during the first daaada 4ba