Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1897-02-10
Railroads and Their Earnings.

~
ner in which the states finances are
dependent upon the success OF the
railroads is shown on a comparison
of the states revenues for the past
few years from thai source. Under
the law which requires the railroads
to pay into the state treasury four
per cent. OF their gross earnings, in
lieu of all other taxes, the state vir-
tually becomes partner In the rail
road business without assuming any
of the bother of their management
or any Of the liabilities for their
operation. AS thegovernor well says
in his message, this is a very simple
arrangement, but it is an arrange
ment whereby it becomes the states
interest to make the gross earnings
OF the railroads AS large as possible.
OF course, the four per cent. tax must
come from the people through their
patronage of the railroads, but COM
ing so indirectly, the people do not
realize that 1t is tax upon them
selves. Moreover, as it comes mostly
from those who can afford to travel
and pay railroad fare, and those
who pay railroad freights, it touches
principally the more we'll TODD and
relieves to that extent the poorer
classes. The amount of taxes re-
ceived from the railroads for the fiscal
year ending December 80, 1896, was
81, 172, 1872. This was more than
one half of the states total expendi,
lures for the year. Generally speak
Ing the taxes from the railroads,
telegraph and telephone companies
and sleeping car companies have US
ually furnished enough revenue to
meet the ordinary expenses of the
state government. The receipts from
these sources have naturally de-
creased considerably in the past three
years, owing to the depression Of the
times and the falling off of the gross
receipts of these corporations. For
the fiscal year of 1894 the taxes from
tie railroads amounted to 81 49,
1853, or about 100000 more than
for the past fiscal year. The state
Of Illinois derives it's entire revenue
from this source, and it is a very
large one. The interest which that
state has In keeping up the gross re-
celpts OF railroads is shown in a re-
cent report of the railroad commits.
sloners OF that state in reply to re-
solution Of the state grange asking
the commissioners to reduce the
passenger rates In that state to two
cents a mile. 1t transpires from the
reports OF the roads in that state,
that although the roads have a legal
right TO charge as high as three cents
| a mile, the communication rates, ex-
cursiOn rates and reduced rates for
| specified occasions reduced the actual
fares paid in that state during the
past year to ~ cents mile, which
was only a quarter of a cent higher
than the state grange demanded
| should be established by law. In
| their reply to this demand of the
| grangers the commissioners say that
| this is a bad time to ask them to en-
force lower passenger rates upon the
railroads., when most of the roads
are having a hard struggle to keep
out of receivers hands. The reduc.
ton, the commissioners say, might
| be borne by some of the stronger
/ trunk lines, but 1t would be a great
hardship on the smaller ones ard
branch lines that have paid no divi-
dends to stockholders, and can with
difficulty pay interest on their bonds,
! because OF the decrease of travel and
business. The commissioners say
any reduction in the rates of many OF
the roads would bring disaster to
them without good to the public. It
appears from the railroad reports OF
Illinois that only Is Of the 45 roads
operating in that state paid any diVi-
dends on their stock and that as q
whole there was a deficit of nearly
eight million dollars in their business
IN the state. Receipts of passenger
| departments fell off "a SO per cent.
| In the whole United States for the
year ending June so, 1895, there was
a total loss in the operation of rail
roads amounting to $29, 845, pa.
| That is. receipts were that much less
than operating expenses. Seventy
FIVE per cent. of all the roads In the
! United States failed to pay any divi-
dendS at all. and there was a default
In the payment of interest on II per
cent. of outstanding bonds. So it
does not look as though the railroads
were doing any better, or even as
well, as other branches of business
! And it does not seem as though this
was a proper time to Jump on the
railroads, when SO many of them are
in receivers hands and are having a
struggle to keep up their accommoda-
tions to the public.
|
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