The independent., 1903-04-09

1.-THE Burlington & Missouri in Nebras-
ka. which is 191 miles long and on
which, according to the last report to
the state auditor, the net earnings
were $2,498,306 or $13.038 per mile.
Capitalizing the value of the road on
/, the basis of 4 per cent, he showed
that its value, based on earning ca
pacity, is $312, ,288 per mile. And yet,
he asserted its reconstruction value is
not to exceed $4,000 mile, the differ
ence in reconstruction value and
earning value giving just an idea Of
how much money the producers and
CONSUMERS of Nebraska are contribut-
ing TO the profits of the railroads.
This same main line of the Burling-
ton is assessed by the state board for
taxation at only $l0,580 per mile.
Continuing, Mr.. Kennedy said: 'In
! the years 1891, 1899 and 1893 1893 an av=
erage of 2,242 miles of Burlington
railroad in Nebraska earned $8,0H, :
308.37 net, after paying all legitimate
operating expenses, repairs, better
ments and taxes, tc say nothing of
lobbyist expenses. This was abso-
lutely clear profit to be devoted to
paying interest on bonds and divi-
dends. 1t amounts to $3,572.27 net for
every mile of Burlington line in Ne
braska. At that time, on this Show
ling, the maximum freight rate law
was held in conflict with the four
lteenth amendment.
In the years 1899, 1900 and 1901 an
average of 2,275.77 miles of line in
Nebraska earned $14,331 ,703.83 net af-
ter paying the expenses aforemen-
toned. The increase in mileage was
only 1913 miles, or about 11-2 per
cent. The increase in net earnings was
$6,32O, ,395.46, or 1888 per cent-almost
~ per cent. The earnings per mile Of
line were $6,296.64, an increase of ST.
724.37 per mile over the previous
three-year period, or almost 76 per
lcent.
In the period of 1873 every man.
woman and child in Nebraska contri-
Duted about 50 of the net earnings of
the Burlington, either directly or in
directly. In the period of 1899-19O1
this contribution was increased to
about $l4 for every man, woman and
chlld-an increased tax Of $6 each, or
% per year.
BY the aid of iuggled figures pre-
pared by a subservient republican
board OF transportation working for
their railroad masters it was as much
as the federal court could do to find its
way clear to hold the law bad at that
time. Yet the Burlingtons net earn
ings were only $8,000.000 in three
Iyears-now they are more than $14,-
100000. Does any reasonable man be-
lleVe that those rates would be too
low today under the improved con-
ditions?
Other roads will show a similar
state OF affairs. None but a man will
fully blinded to conditions can deny
that the railroad earnings have in
creased enormously, both by reason
OF increased traffic and by reason of
coyertly increased rate.
Owing to peculiar methods of rail-
road bookkeeping the net earnings by
no means tell the whole story. Oper-
atlng expenses are now made to cov-
er betterments, which were formerly
paid for by an issue of bonds. The
Omaha station, for example. was
doubtless paid for out of gross earn
ings. We take the railroad figures,
however, as reported to the state au-
ditor, and there is not a particle of
doubt that the rates prescribed in the
maximum rate law are reasonable.
THE Burlington has considerably
less than half of the $500 miles of
railroad in Nebraska, but if we as
sumo its earnings to be half of the to-
tai our calculations would be about
like this:
"In 1873 every man, woman and
child in Nebraska contributed SIG to
railroad net earnings-say SIS a year
for convenience. In 1899-1901 this
contribution rose to nearly $29, but
call it SO a year to be conservative.
twenty-five dollars a year for the
head Of the family then-$45 now"
The republican railroad members
made no effort to answer this speech.
They sneered and ridiculed and COM
planned. and finally Thompson of Mer-
rick moved to lay on the table the mo-
tion to advance the bills. On the
motion to table the vote resulted, ayes
l39, nays AZ, and it was lost. Thirty
mine republicans voted aye and twen-