The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-05-27
SCHEME.
He UnfOlds Plan to the People
of MankatO
For Solving the Problem of
Lower Freight Rates.
HAVETHEIR OWN ROAD
Tells Them How it Can Be Done
"Just as Easy"
Plans Are Already Well Under
Way, He Says.

Mankato. Kan, May 27.-Two thou
sand Populists held an Indignation
meeting here yesterday afternoon to
discuss railroad freight rates, and this
meeting afforded Gov. Leedy an oppor-
tunity to spring a surprise on the peo-
pie of Kansas. After referring to the
recent supreme c. urt decision further
curtailing the authority of the inter-
state commerce commission, he declar-
ed that the time had come for the peo-
pie Of the west TO act, and he asserted
that they must themselves furnish the
needed relief from exorbitant freight
rates.
ThereupOn he proceeded to outline a
plan which, he said, had been matur-
ing for four months. He announced
that he appeared before the meeting as
the representative of a company of
railroad men who desired to go into
partnership with the public in the
building of railroad from some point
in central Nebraska, through Kansas
Oklahoma, Indian Territory and Texas
to the Gulf
He said the company he spoke of was
able and ready to complete the road
provided the public would take the ma
jority interest in it and that the public
need not put up one cent until the rail
road should be completed.
The proposition is that the states and
municipalities shall hold the majority
OF stock. The men associated with him
did not propose to take in any outside
capital save that of the states and mu-
inequalities, which would be in the ma
jOrity, and they proposed to run the
road themselves, or to allow the ma
jOrity interests to run it. The stocks
and bonds of the company it is pro-
posed to issue through the Texas rail
road commissioners or the commission
=
might be agreed.
Prominent Texans, the governor said,
have expressed a Willingness to take
hold of the scheme, and he believes
that Texas is willing to invest some of
her $22, 600 600 of surplus school funds in
securing more equitable freight rates.
1t is claimed, too. that the 4,500 cOnvicts
in Texas could be put to work on the
road bed, the state receiving pay for
their labor in first mortgage bonds.
L read but yesterday in the papers"
he began, that by the decision of the
supreme court of the United States the
life and authority of the interstate
commerce commission is at an end. It
has taken us II years, long, weary years,
to find that it was ValUeless. 1t will
now be in order for congress to pass
another bill, and shall wait another
Il years until that has been tried and
tested?
Kansas and the west TO act. Let them
get for themselves the relief from ex-
orbitant freight rates that they seem
unable to get in any other way.
I stand here today ready to submit
a plan that would not have been sub
mitted to the public so soon had it not
been for this decision of the supreme
court against the interstate commerce
commission.
For four months this has been ma
turing, and am now before you as the
representative Of a company of gen
tlemen-railrOad men-WhO desire to
go into partnership with the public in
the building of a railroad from some
point in central Nebraska through Kan
Texas to the Gulf. The public need not
put uD one cent till the road is COM
pleted. The company L speak of is
able and ready to complete the road
provided the public Will take the ma
jOrity interest.
by public I mean the states and
municipalities shall hold the majority
of stock We do not intend to have one
dollar of private capital in it other than
our own We could not afford it. Eth
er we will run the road or the majority
interests may run it. We will take
equal chances with them.
This road as proposed would be
about 900 miles in length and need not
have a bonded Indebtedness Of over
S12 600 per mile. The valuation should
be fixed by the Texas railroad commits
sioners The idea of course, is to re-
duce the rates to the Gulf to the mini
mum. There is no excuse for new
road to the Gulf otherwise
THE main idea in having the public
own the majority of stock is this: We
want to go into partnership with the
people who will furnish the business.
You can readily see that if the people
have a road it will parrOnize 1t in its
private business far quicker than 1t
will a private road, all other things be-
ing equal Again, they would patron
ize it for the reason that if they did not,
and the road died they would be as
badly off as now. for the reason that
with the death of the road compelling
the low rates, the rates WOuId lh1Inedl-
ateIy go up again
'tProTpinent Texas men with whom
have talked believe that Texas would
he willing to take hold of the plan. She
has now in her school fund some $22,-
600 600 which she has difficulty in in
vesting Some 40 years ago she tried
an investment in railroad mortgage
bonds. and it has proved the best in
vestment she has ever made. The in
terest has always been promptly paid,
and the stock mas always peeh ABOVE
In Texas also are 4,50O convicts,
which. if the state wants to, she can
nut at work on the construction of the
road and received pay for their labor in
first mortgage bonds. This can be done
in Texas easily under the law, and the
same plan may be carried out in Kan
Sas without changing the constitution.
THE value of the railroad to it's own
arS doesn't depend so much upon the
ra te it charges for hauling as ii does
uDOn the volume of business done. It is
asserted by the roads that the mini
mum price for which freight can be
hauled is six mills per ton per mile.
Kansas people are paying IL Between
Buffalo and New York freight is carried
at the rate of two ard a half mills
Der ton per mile. We will accept any
rate the majority of the stockholders,