The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-02-19
RAILWAY LEGISLATION.
John VIM. Smell Gives His Views on
the Subject.

the SUBJECT.
IF the state of Utah is to become an
ideal commonwealth many changes,
some of them amounting to innova-
lions, will have to be made in existing
laws
Among the most important subjects
to be treated of are: The use of water
for irrigation and for supplying cities
and towns, fuel, light, rapid transit
in cities and the TRANSPORTATION, by
railroads. of freight and passengers
Those who furnish and provide the
above are usually granted extraordin-
ary ADVANTAGES much greater than are
given, according to the light obtained
by examination OF results in other
states.
1t is the intention of this article to
deal only with the question of railway
transportation and adverse reflection
upon any official in Utah is emphatic
ally detained at the outset.
AS a class they are men whose fu-
ture is identified with the states fu-
ture and they are anxious to beneht
it and themselves.
Hence. while complaining of the sys-
tenn which controls them no personal
illusions are intended.
Remedies which will benefit railroad
owners and investors alike are herein
suggested Some of the evils of the
past and present are illustrated in the
following: A railroad is capitalized
and owes debts to the amount of $780,
900 per mile. 1t can be paralleled for
$4,000 per mile or less. the amount of
it's first mortgage. This mortgage is
held by European capitalists and is a
legitimate investment to be protected
by the state. The second mortgage is
for, say, $4,000 per mile, guaranteed
by the United States government and
is held also by European capital, not
because of its real value. but because
it is guaranteed. The balance
of the 100000 is held by the
people of the United States
and perhaps 3 few in EUROPE. The
debt is worthless and nothing more or
less than grand confidence game.
The men benefited havet withdrawn
their money after having sold stocks
as long as possible and had the peo-
pie evinced a willingness to stand it
would have doubtless run the debt up
to 100000 per mile. No matter how
/ much the road might earn, ways
would be found of diverting the profits.
Despite the fact that like our own lines
prices were charged aggregating $40
per ton on potatoes from Utah to
Colorado and such prices. a willing
ness has ever been evinced to give the
man with ability to get more revenue
by legalized robbery, a chance. The
more money the road made the surer
its going into the hands of receiver
The expenses of repairs were kept to
minimum and were just enough to
warrant safety from accidents.
The Union Pacific management has
probably been one grand swindle from
the beginning UP to within a short
, space of time commencing with the
Credit Mobilier affair, and including it's
! business in coal, iron ore, salt. oil,
sugar, Soda Springs water and other
products. At one time, under the
rules, but one man could buy grain
along the line. a company favorite.
I This policy injured one Utah man to
| the extent that it broke" him. besides
financially injuring many others.
At another period, no one was allow
ed to bring coal from Coalville. only
forty miles distant, but the favored
class coud ship from points miles
further away. This policy materially
injured many citizens several of whom
aided the road in many ways
] know one citizen of Utah who had
| five successful businesses in shipping
destroyed one by one by concerted .ac-
! ton of an organization which used
corrupt means to accomplish its ends.
| He retaliated with some effect how
ever.
One Utah tine has doubtless cleared
every dollar it cost, but is in the
hands of receiver and would be had
its earnings been double the amount
they were. The profits went into the
hands of the eastern capitalists.
| The government will not get it's ST.
900 per mile on the lines it controls.
The road is not worth the amount of
the first mortgage but if it were fore
closed at that figure and capitalized at
$4,000 per mile it might benefit the
people by doing business. The man
agement would not have 20 lie awake
nights devisfng means of declaring
dividends on watered stock. The in
vestors, patrons, employees could all
be literally dealt with.
/ Some radical measures are needed.
How would it do for government to
require the road to haul all mails,
naval and military material, officers
and men in consideration of cancelling
$1,000 per mile of debt. and accrued
interest per mile each year, until the
S27, 900 mortgage is paid in full? The
road might so be compelled to reduce
its capitalization at once, or when the
arrangement becomes operative. This
would reduce the dividends.
Here in Utah we want a road to
Deep Creek and to southern California.
but past experience ought to teach us
to go slow. We do not want road to
Deep Creek at $50, 900 per mile.
Let us have three railroad commits
sioners, one elected from three norni-
nees selected by the railroads. one
elected by the people with the gov
ernor as chairman. qualifications to be
defined by law.
This commission to make the maxi
mum rate for freight and passengers
on each railroad, the minimum rate
to be open for all equally. The
object is to permit the roads
to earn enough income to pay 10 per
cent each year to the stockholders, on
an actual cost capitalization Also
prevent fancy salaries Tor nominal SER
vices because of being in control of
holdings of stock or franchises.
If a road proposes to enter Utah at
| the southwest corner. require an esti-
mate of cost per mile, and if the COM