Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1896-02-21
World Of Labor
Government Ownership of the
Railroads.
Across the Continent for One lo'' =.
BY F. C. r.. GORDON.

is the naturalization of the means OF dis
tribution. propose in the following pages
to show some Of the advantages of one part
e,f the system of distribution under govern
,oent ownership. With the last quarter OF
acentury the railway system of the United
States has assumed vast proportions. In
1893. there were 1,3, $40. OF miles Of rail
road in operation, with a total capitaliza-
ton Of $l1, 443, SSS, 500. The gross earnings
of these 173, $40 miles were for the year
1898, 81, 2o2, 6lS, 300 The net earnings were
s346, sol ,1O9 The history Of construction,
management and operation Of the railways
of this country is history of grand larceny
of the people. In the first place, the deals
and huge profits from construction are most
appalling. Here is the way the
railroads of America are built:
First. charter is secured
for the right of way. running a distance of
200 miles Ito illustrate) across the State OF
Iowa. The road will be capitalized at
$50, 900 per mile OF Sl2, 900, 000 Trusty
agents and subsidized press work up a
patriotic sentiment in the counties,
towns and cities through which the road
will be built AS result, many thousand
dollars in gratuities, valuable land sites
for depots, etc be-, are given the company
hundreds of towns and cities are in debt
to-day on this account. In the meantime
the company issues construction and
equipment bonds. The bonds thus issued
are quite often double the real cost of
4, hour in mind the
road bed is not really built, but left to the
overworked section hands to perfect, with
sometimes an extra gang, with charge
on the side Of operating expenses. The
total honest valuation of our railroads to-
day is not over 81, 900, 900, 900.
Again, there has often been double
watering of stock. To illustrate: When
the Vanderbilts obtained control Of the
N. Y. G. & II. r. road in 1869, it was
capitalized at S45, 900, 600. This was at
once watered up to $50, 600, 600 more eva
teri has been added, until at present the
capital is Sl46, 900, 600
The Erie road cost about $50, 600, 900, but
it pays dividends at present on over $780,,
600, 900. Now, here is the real point to look
at: The men who first charter and have
built railroad, furnish very little capital;
the result being that they make the effort
to pay, not only dividends on the capital OF
the road, but also interest on the debt
which the road owes TO the bondholders.
This plan Of issuing watered stock upon
which dividends are paid, has been pur-
sued by all railroads in the country. This
getting something for nothing has made
the millions for Vanderbilt, Gould and
others.
1t would give the death blow to the great
est lobby that ever existed. There would
be no more strikes, no more cut downs.
1t would give employment to 5000
hands in addition to the $50, 600 now EN-
ployed. 1t would treat all alike same as
our Post Office. 1t would save thou
sands of lives every year. 1t
would take the roads out of politics
with their corrupting and debauching
methods 1t would transport freight at
one fourth the present charges. AS the
express business would also go into the
hands of Uncle Sam with the railroads, it
would save the people S., 900, 900 or more
yearly on thaa Passenger rates would be-
reduced to so low rate that it is beyond
calculation, the enjoyment and luxury Of
travel, and the immense saying that would
result.
Let me illustrate one of the present sys
tens, the struggle for trade. Some three
years ago friend contemplated trip to
the Pacific coast: and at his request Iwrote
to several Boston agents of the great Trunk
lines. As result of the correspondence,
we were flooded with several bushels of
books, papers and pamphlets, advertising
the advantages of the Burlington route, -
the ''Sante Fe route, - Union Pacific
route, - and several others. In about ten
days the travelling agents put in an appear
ance. They were bright men, dressed well,
understood their business, and illustrated
to ry friend the respective advantages of
the road they worked for. Now, who pays
for all this advertising, the expenses of
the travelling agents and their salariesy
Who pays for the $40, 900 offices that line
the streets Of all our great cities? Here is a
direct loss of not less than $50, 600, 900 every
year, il we reckon the commission evil with
the Struggle for trade. There would be
saving of $25, 600, 900 by dispensing with
presidents (salaIies); savings from consoli-
dation of business, $50, 900, 900; savings
from legal expenses, SIS, 900, 600; savings
from pass evil, $50, 600, 600 Gf the pass evil
is as extensive in all States as in New
Hampshire the saving would be 500, OOO
OOO.)
Savings from abolishing hangers on
officers who only draw their salary-and
traffic associatings S25, 600, 600, saving from
political corruption fund $50, 900, 900, saw
ing from net profits s346, 900, 600, saving
from secret rebates to trusts 500, 600, 900.
A grand total of S691 900, 600.
The fear that the roads would be in poll
tics under government is foolish when once
investigated. Says Mr.. Palmer in Coming
Confetti mime ont Of ten railroad en-
ployes Of this country must necessarily be
experts in their particular branch of the
husinasc ~