Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-05-10
THE RAILROAD PROBLEM.

To the Editor OF the Register
The present unhappy Railway SItua-
ton resulted from managing public
highways contrary TO sound business
principles and contrary to common hon
eSty. Railroads combine
I. To prevent competition-between COM
>cnies seeking the same traffic; between
honest capitalization and watered stock;
or, between a short and long haul
II. To build up localities in which Off
cialS are interested, or, TO prevent new
roads from invading occupied territory.
III. To put different communities on an
equality as regards the same market For
example, making the same rate from Chi
cago 70 New York. Baltimore and Norfolk.
". To give stockholders the profits Of
industries along the line. For example,
the pool to control the output and price Of
anthracite coal: the contract to sive this
Standard oil Company such rates as
would enable it TO bankrupt competing
producers.
So-called statesmen may profess TO dir
fer about the duty of government TO pro-
hibit some of these combines" but done
dare question its duty to prohibit such
combines as the anthracite coal pool, or
the Standard Oil contract; and every man.
al all acquainted with pubic affairs knows
that such combines would be instantly
broken up except for railroad attorneys
IN Congress.
These combines" grow out Of attempts,
% 10 compel the public 10 pay interest on
fraudulent capitalization, and C) to en-
force the Illegal rule Of making The rate
as hich as TIE traffic VIII bear The
remedy Is simPle:-
Fus,-Reduce. capitalization 70 the
amount security holders have pat into
the roads. Bettermen,s. II paid for QUE
Of earnings, were paid for by the public,
not bv security holders anu 10 capitalize
such betterments IS equivalent TO watering
stock. The public ought not 10 be tolled
for using what the public have paid fo".
Sacond-AIake a schedule based on the
cost of service. Express companies pro
fess 10 charge on this basis. II the cos,
o. insuriu- against theft be added, It costs
the same 20 transport a pound Of lead
worth only ten cents. as R pound Of gold.
worth S2fS The factors OF the cost OF SER
vice should be. ID interest on the money
contributed by security holders, and 60
operating expenses. viz: pay Of employees,
/ reuairs. and al legitimate disbursements.
.Contributions to campaign funds; pay
ments TO corrupt elections: salaries TO po-
Htical agents: subsidies to newspapers;
| she cost Of BARR aiding access 10 the pub
/ Tic ear. and the cost Of the free pass brib-
/ cry. are not legitimate disbursements.
.Third-Absolute publicity respecting all
| the details OF management. 1t Is impossi-
! bile. 20 suggest a motive for secrecy unless
| some. scheme Is on foot to rob the public
/ or to swindle security holders.
Legitimate management involves only
three departments: %. keeping the track
/ and equipment In order; (2) regulating
| trains to prevent collisions; and 81, r.
ceivinE and disbursing the money coll
| lected from the public.
II the rule making rates at high as the
tariff will bear be abolished. then it will
not require the present enormously ex>
! pensive and demoralizjng departments
/ which regulate charges; devise methods TO
| extort the maximum revenue from terri
| tory under duress: to aid stock gamblers
/ selling unsafe and fraudulent securities;
to appoint political emissaries and feebly
resist b,ackmail.
According TO correct theory. reasonable
rates" are such as will meet the cost of
the three departments above mentioned
and interest on the capital invested.
Rates are reasonable when they yield
only such a margin, above expenses, as
will give reasonable remuneration to tho
capital invested. and. al the same time.
distribute the burden so that each service
rendered will bear it's proportionate share
of the amount collected from the public.
II violates the fundamentals TO adjust
/ rates to make q railroad the wet nurse for
any community or industry. \ violation of
the fundamentals is certain, in the long
run. to hurt more people than are bene-
| fitted
\ profit resulting from increase of popu-
Iation belongs to the public, not to the
owner of a franchise. and this profit should
be secured to the public by reducing rates.
Ferry rates between New York and
BROOKLYN which were reasonable when
those cities were villages. would be un>
reasonable when a million persons cross
daiv. In 1893 the railroads collected from
the public SI22O00.OO0 or $122 for every
voter then in the country. As this vast
sum largely exceeds the amount required
10 nav all legitimate expenses and ten per
cent. on all the money security holders
ever contributed. rates may be greatly re-
duced If correct methods be adopted. The
situation must rapidly grow worse unless
the whole system of management is re-
constructed to conform to these '9lain
principles All the companies may be con-
solidated. under government supervision,
not ownership. and may be so consolidated
without detriment to the public or injus-
tice to security holders. Half million
dollars invested in honest brains would
solve every problem within six months,
and devise a harmonious system to super
se5e the present tottering patchwork Of
.sunorarv make-shifts. II is practicable
IN hiring about a sound and permanent
railway situation. II is practicable to re-
tire an outstanding bonds and stocks, by
an issue based on the total amount which
shall he collected from the public. I'm
sourd methods cannot produce healthy
conditions. Pooling contracts may bolster
M, the present situation for a brief period,
but viii aggravate the disease ana make
the reform more difficult and costly We
have come TO the parting of the ways.
one way means that industry will feel
safe TO settle beside a railroad. although
its president owns the competing factory,
and capital cease TO fear railway securi-
ties. The other way means increasing dis
trust and incalculabie loss to security
ha