The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-08-01


lied value of all the railroads in the United
States at 100000 900. but the actual cash
value does not in all probabilit exceed
one-fourth that amount evidenced as fol-
lows: Stocks. quoted in any daily paper
show up as follows See few examples:
Atchison .................. 414 cts on the dollar
Nor Pac., pfd...........14 cts on the dollar
Reading ...........-...17I cts on the dollar
Union Pacific ..........10 cts on the dollar
Erie ......................13 1872 cts on the dollar
Erie pfd ............2 cts on the dollar
MISSOURI Pacific ........ IS cts on the dollar
ROCK Island .............67l4 cts on the dollar
Mlchisan Central ....-.95 cts on the dollar
Great Northern..........99 cts on the dollar
Lake Shore ............1 291s cts the dollar
Del. Lack. & West. 1884 cts on the dollar
The bulk of this capitalization is watered
stock, and the value of all depends upon
the dividends paid Dividends come from
net earnings. Large earnings can only be
secured by high rates for passenger and
freight traffic and low wages for employees
On this point Poor says that in 1892 the
total earnings of all railroads in the United
States was 81 205.272.023 that the operating
expenses We're 1916, 633 503. and that $50, 1885,
Hl was paid out as dividends; $239, 259 1888
was required to pay interest on bonds etc
from the amount of dividends paid we are
forced to the conclusion that the capitalized
STOCK is only worth 2777. 1893, 70O figuring
per cent interest but if we were to figure
buy piece of property for an investment
VIZ, per cent net, then the real value of
the roads is but half the above figure. But
yet another view forces us to the conclu-
sion that $2,5OO000,00 is a big price The
original cost of construction was two and
three times as much it is today Rail-
road properties have deprecated in value
In the same proportion other property.
When the railroads need land for track
age, depots, etc. they condemn it, AT
present cash value boom prices do not
60 Likewise when the public needs the
railroads it will pay actual cash value not
exorbltant cost prices a fictitious price
given special lines by reason of large bust
ness yielding fancy dividends on watered
STOCK But is it for the public good that
Uncle Sam should own and operate the rail-
roads? If that question can be unouestion-
aply answered in the affirmative, then it
is the duty of congress to provide the WAYS
ana means. The amount of Indebtedness
neeu not frlghten anyone so long as the
revenue is sufficient to pay the interest on
ponds, operating expenses, and to replenish
the Iund necessary to be kept for repairs
etc. claim that the greatest benefit will
result from government ownership by rea-
son of the fact that then and not till then
can we nave a single freight and pas
senger rate of the entire country and by
that [ mean uniform standard price of
about S150 per ton for carrying freight re-
gardlesss of distance and a passenger rate
of about 81 for any distance up to 500
miles, with an additional 81 for every 80
miles or traction thereof If we can get
coal, fruits, farm machinery. sugar teas
dry goods, etc, from the East and West
for only $l.5O a ton, and are allowed to
snip our wheat, beef, pork, corn lumber
iron, etc, to New York or San Francisco
for Sl.5o ton it will be admitted without
question that Matchmaking the railroads
ana nxjng rates as suggested will work
complete revolution of values, and will
even up at one stroke many
of the inequalities that now exist.
Land near large cities will fall in
value three-fourths, while farms a thou
Sand miles from the great market centers
would Immediately increase in proportion
dakota, Kansas and Oklahoma lands would
be worth quite as much for farming mr.
poses as would be Illinois or Ohio of same
quaiity, located same distance from rail-
road. Travelling then would be as common
as riding on street cars now Such q
scheme is not as preposterous as some
mlSnt thlnk, as Will be seen from the fol-
lowing figures taken from Poor's Manual:
In 1892 the total earnings of all the rail-
roads in the United States We're:
Passenger traffic ....,, 5000 557 47e
Freight traffic ...... S16 716 75o
So "i0 ''''''''''.''........... Sl,582,S64
EieVateo ACKNOWLEDGEMENTS. 13414,924
Number of passengers carried -. SIS, 769, SIS
Average paid by each passenger. 81 cts
Number of tons freight carried in 1899
'49,33l,S6O; average rate per ton, $1O1
In 1882 the. average passenger rate was
% cents, and average freight rate ST. 35 per
ton For the IL years the average passen-
ger rate mas been 30 cents, and average
freight rate $1.14 a ton. From which II
will be seen that had each passenger heen
compelled to pay 81 ride and each ton of
freight carried $l50, that the earnings would
nave been much more than they were
while the operating expenses could not
n yy0 hnn %A,
Instances freight can be handled by teams
if the owner objects to paying $780, Pas
sengers can take electric cars, drive or foot
1T. Long distances what deplete the
travellers pocketbook and keeps the pro-
Queer in debt. Single rates will overcome
this obstacle, and kill off all trusts and
monopoles at the same time. Railroads
are the great equalizers of modern times
but to work perfectly they must be ma
tionalized and placed completely under one
management, same as the postal system,
and that management must work for the
interest of the whole people, not for large
dividends, as is done Two billion five
hundred million dollars is fair price for
all of these roads, and their earnings will
pay per cent on that amount Doubtless
the stockholders would prefer $1,000
government bond drawing 3 per cent inter-
est to a $4,000 railroad bond worth only %
cents on the dollar, with no guaranteed
interest. Their real wealth would not be
decreased, but the figures would be
changed.
1 have been fighting for tariff reduction
for 20 years, and now that the Democrats
have the power to redeem their pledges
we see them fighting like a lot of MONKEYS
and absolutely doing nothing worthy the
effort New issues must be taken up and
new men sent to congress to act I be-
lieve the financial and transporta ton prob
lens to be the most important For 20
years l have urged men to assert their in
dependence, and to vote as their conscience,