The representative. [volume] (St. Paul, Minn.) 1893-1901, 1899-02-01
THE RAILROAD QUESTION
The Southern Mercury Believes 1t
Will Loom Up a Great Issue In
notwithstanding Facts and Fig
ures-Shall We Go Across the Con-
tinent for One DOllar:

tinent for One Dollnr:
A very intelligent writer in recent
number of the New Time Magazine
treats the subject of government owner
ship of railroads in a very thorough and
interesting manner. His facts and fig
ures, made up from government and CT
fetal railroad reports, are in some re-
spects absolutely startling, and in all
others profoundly interesting. This is
one of the great questions that will
soon come prominently before the peO-
pie for settlement, and every citizen
should therefore give it an intelligent
consideration. The writer referred to
says in part:
Whether the government-the people
shall own the railroads, or the rail
roads own the people and the govern
ment, is a question that will in the near
future be discussed in every town, vii
lage and hamlet in this country.
The railway is necessity. The na-
tionalization of railways is a perfectly
sound commercial undertaking, and its
realization will confer untold blessings
and benefits upon the whole people.
Within the last quarter Of a century
the railway systems Of the United
States have assumed vast proportions.
The number of miles of railway in op-
Grafton for 1896 in this country was
179,162.18. The capital stock, funded
debt, unfunded debt and current ac-
counts amounted to $11 go, ,9O1 GA, truly
1896 were 1927 sos, ,242. The business
panic which has lasted for the past
several years decreased earnings and
must be taken into consideration. In
1898 the net earnings were 1864, ,592 ,1O9.
Notwithstanding the fact that our
roads are capitalized at over eleven
billions of dollars. the honest value is
much less than four billions of dollars
The New York Central and Hudson
River railroad in 1869 was capitalized
at $45,OoO,000. In one year it was Wa
tered up to 500 1000, 900. Sound busi-'
ness management has since added more
water, until now the road is capitalized
at $146, ,OOO,O 900.
For the year ending June 80, 1896,
the total earnings of this road were
$45,144,967. The operating expenses
were $35, ,455,570, leaving as net earnings
the sum of $14,689,397. The other great
railway systems are just as bad as the
New York Central and Hudson River
railway. Here is the point to look at.
The men-the corporations-who first
charter and build railroad furnish
very little capital. The railway cor
porations 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.
Here are two sets of dividends; but this
hence they water up the stock to double
or quadruple it's first cost, and the dear
public, which the modern capitalist
loves so we'll, is forced to pay three or
four sets of dividends. This getting ct
something for nothing has made the
millions of Gould, Sage, Vanderbilt and
others.
That our railroads are in politics
every intelligent person knows. They
control state legislatures, congress, and
even the courts. The greatest LOBBY
that ever existed is the railroad lobby.
If any there be who are disposed to dis
pute this statement, let them read the
following from the New York Board of
Trade and Transportation: THAT they
the railroads-absolutely control the
legislatures of majority of the states
of the Union; make and unmake COVER
nors, United States senator's and con-
gressmen, and under the forms of popu-
lar government are practically dictators
of the governmental policy of the United
States, is not to be questioned. They
corrupt our elections, legislatures and
courts" Mr.. Jay Gould testified before
contributed money to control legislation
in four states, and under his manage
ment the Erie road spent one million
dollars for bribery in one year. Mr.
e. D. Worcester, treasurer of the
road, testified before the constitutional
convention of the state of New York.
that his road paid the sum of S205 900
in one year for legislation. Mr.. Gowen.
the president of the Philadelphia and
Reading railroad, made an argument
before the committee on commerce of
the house of representatives on Jan. 27
1880, in which he said: Il have heard
counsel of the Pennsylvania Railroad
company, standing in the supreme court
of Pennsylvania, threaten that court
with the displeasure of his clients if it
decided against them"
In its report on railroad corruption
In the state Of California, the grand
jury of San Francisco fled in omen
court, Dec. %, 1891, said: "It has de-
bauched both parties until an honest
man cannot without fear of contamina-
tion aspire to political office. The
fear that railroads would be in politics