The herald., 1895-04-03
REDUCTION OF RAILWAY CHARGES

lower than they have been, and for these
reasons, if for no other the people think
transportation charges should be reduced.
But an inconsderable part of the pro-
ducts of California can be consumed at
home, and the people must reduce trans
portation or find market for the surplus
in the east. The haul is long and the
burden is greater than upon those pro-
ducers who are near the centers OF con-
sumption. From the burden of railway
charges upon what is brought hither
there may be relief through extension of
manufacturing industries which will en-
able our people in larger measure to sup
ply themselves with much that is now
imported from other sections of the coun-
try. Railway carriers are entitled to reas-
enable compensation for their services,
and the question is, what should that be
under existing circumstances? The fixed
charges, that is the interest on the
bonded indebtedness, remain the same
whatever the conditions may be. Pro-
vided railway stock is genuine, which
means that it represents cash investment,
| it is entitled to a compensation or divi-
| dend, and what is a reasonable dividend
| NCpCiiQo upOi CllCuluoIdllSCS. IL 10 SSi
| tainly not entitled to as much when the
prices of the products of the farm and
shop are low, and when labor is obliged
to submit to reduced wages, as when the
profits of business are large and wages
are high. Capital should not be allowed the
same earning when business is de-
pressed and the country lis distressed. as
when there is activity and general prosper
! ity. It should lessen its demands to co..
respond with lessened profits that dealers
and wage earners are compelled to sub
nit to.
| Railway operation and maintenance
are not as expensive as they were few
years ago. Steel rails, fastenngs, lum-
| ber engines cars, and all otner supplies
are cheaper, and 50 IS fuel, and wages are
much less, except, perhaps those that are
paid to the officials. These have much
to do in determining what the charges
should be. 1t is true, on the whole,
that the volume of traffic is not so great
as formerly, owing to business depression
and hard times. People neither travel nor
consume so much as when times are
easy and money is plentiful. A reduc-
| ton of the volume of traffic does not pro-
portionately reduce the cost of operation
and maintenance, nor does an increase
| proportionately enhance that cost. But
the reduction in prices of materials and
of wages much more than balance the
| increase of cost of transportation per
| capita and per ton or hundred pounds of
| freight, and therefore railroads should be
able to reduce their charges appreciably
| below those that were in force before the
prices of materials fell and when wages
were higher.
! 1t is undeniable that railway ca pitaliza-
| ton is far in excess of the value of the
| properties, basing that value upon present
cost of reproduction. Part of that excess
is the result of the greater cost at the
time of construction than it would be
now. This fact does not entitle the stock
holders to an earning upon all they have
invested, for if they embarked in ven
ture that has turned out badly they
must stand it, and not the patrons of the
road. Railway investment is like any
other. The investor in lands or houses
or any other property does not expect
that misfortune should be visited upon
Others and himself saved harmless. In
making charges the roads should take
into consideration tile conditions of the
country the small profits to those en-
gagged in productive industries and the
| circumstances of those who are compelled
to earn a livelihood by manual toll The
| charges should be such as will relieve to
! some extent the burdens of those
| who are victims of hard times. If this
| is not what is called a good business
principle it is certainly a humane one
| Railway managers strive to earn all
they can for capital, and they treat the
entirety OF the bonds and stock as so
much capital. The fact that part of the
| capitalizatio is fraudulent or fictitious
and really entitled to no compensation is
not taken into account. Though mate
rals are cheaper and wages of shopmen.
trackmen, fremen and clerks are reduced,
| the salaries of the officials are generally
kept up TO high pressure figures. In some
cases the salaries of presidents, which are
| $50, 900, and the traffic managers, which
are $25, 900, and general managers which
are at some high figure. have been re-
| duced 10 per cent IN order to take the
| curse from the reduction of the wages of
the employees by the same percentage.
Excessive capitalization and high salaries
Of the officials are the chief causes of high
rates for transportation. If capitaliza-
ton were just and salaries were but rea-
sonably compensatory charges could be
materially reduced without taking from
actual investment what would be reasona-
bic compensation.
So long as railway companies disregard
what is morally right between man anc
man there will be complaint and political
action that will surround the whole SUBJ
| ject with embarrassment and vexation.
1t cannot be expected that the masses
will rest under injustice, under burdens
that they ought not to bear. 1t is not the
question whether transportation i greatly
cheapened as compared with that by
primitive methods, but whether capital is
not getting more than it's fair share and
whether railway officials are not securing
more pay than their services are worth.
| The people have right to complain of
undue compensation for services. because
they and not the stockholders foot the
! bills.
The people are often charged with de-
sign to destroy railroads, because they ia
vor government ownership or control, or
advocate other measures that interfere
with railway exorbitance. All reasonable