Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1903-01-21

upon merchandise and farm products tex
cept a few articles which are shipped un
der higher rate than first class, or under
a lower rate than class d, or which like
cattle, grain, coal, lumber, etc, are shipped
at a different rate when moved in larger
quantities. the supper In Wisconsin pays
fr6 Is TO nearly 40 per cent. high IT than
tn hipper In Iowa where TRANSPORTATION
cha ges are controlled by a state railway
commission. 1t means that in comparison
with Illinois. we pay In Wisconsin on eat
from 1872 to 81 per cent. more than the
people of Illinois, who are protected from
excessive transportation charges by a state
railway commission. 1t means that these
differences in rates. so nrejudicial to Wis
cOnsln. are in every case presented in the
foregoing tables upon the same roads, for
the same class and kind of freight trans
ported the same number of miles. and in
all respects for identically the same serv-
ice.
Yield a Reasonable Profit.
Now 1t can be taken as conclusive that
the transportation charges in Iowa and in
Illinois are high enough to give the rail-
road companies at least reasonable profit
upon the railroad business in each of those
states. Nothing Is more certain than that
the rates for each of these states yield Ia
the railroad companies a reasonable net
return upon all their capital Invested 9th
erwise, they would not operate their roads
under that rate. If the rate afforded them
less than reasonable profit, they would
at once appeal 10 the courts to increase
the Legislature nor railroad commission
clothed with power to fix rates can compel
railroads to accept less than reasonably
profitable rate for all services as common
carriers Therefore, by acauiescing in the
commission rates in Iowa and Illinois with
out appeal to the courts the railroad com
panies admit the rate to be high enough
in those states. That the rates In Iowa
and Illinois have proven profitable to the
railroad companies will appear affirmative
ly later in the discussion of this subject.
"a II &c n n
lishPd by the railroad history of Illinois ana
Iowa that the rates are reasonable in those
states, what shall be said of the rates IN
Wisconsin which average 40 per cent Nigh
or than in Iowa and very much higher, as
shown. than in Illin6is?
The freight earnings of the railways In
were So. 2TS, 629.31 Assuming that the
larger portion of freight handled Is of Il
class in which the excess OF charge Is less
than the average difference between WIS
cOnsin and Iowa. vet making full allowance
therefor. and for the division between state
and Interstate business. in collecting the
S32,21S. 629.31 in transportation charges from
the people of Wisconsin In 1901. the rail-
reads received n great many millions of
dollars more than they collected from the
shippers Of Iowa for precisely the same
service as common carriers. In other
words, they taxed the people of Wisconsin
a great many millions of dollars more than
4 reasonable profit upon the freight busi.
ness of the state In twelve months.
iDuteu. II Is not strange Win these tuOEr
nous and unreasonable profits in Wisconsin
that the average net earnings of the rail
reads for this state during the last three
years. by their own admission, amounted to
G1j.4S3 762 90 each year; nor that the net
earnings Of the North Western and St
Paul systems for 1902 should amount to
S11. 33I .36S.4 A for the road in Wisconsin.
and $34, 81 .SG00S for the whole line nor
that they have been able to pay interest on
bonds aud from six to eight per cent. upon
common and preferred stock and have over
and above all expenses and charges total
surplus of SG594. 531 ~ for Wisconsin, and
S20.47J. 997. G3 for the whole line, Profits
In the oJspfation of these two great railway
systems have been increasing with great
rapdity during recent years. ine total net
earnings Of both the st. Paul and North
Western for a period Of FIVE years from 1888
10 1881 inclusive amounted to $50. s23. 49,. 90
for the road in Wisconsin, and Sl0l $50, 366.
20 for the whole line
Every dollar taken from the people OF
Wisconsin in overchdrges by the railroad
companies affects the values Of farms and
II tc~tes. the profits Of mercaa4.-- So. and
.. ges II labor. Why should Wisconsin
eve injured this great lossE Il is be
ca and only because, the railroads have
20 sued to exercise such control rs To de-
gisiation in Wisconsin creating
con. on 20 regulate transportation rates
such - the Legislatures Of Iowa and III
nois have adopted. Session after session
sEeh bills have been Introduced ONLY 10 de
in committee or be overwhelmingly defeated
IL the Legislature.
An Argument Answered.
1t has heretofore been urged IN opposi-
tion 10 the enactment Of a rate commission
law for Wisconsin that 1t would arrest all
further construction within the state. stop
improvements, infure manufacturing pref
uLice agricultural development sarieuslg
harm business Interests. and generally re
tard thu progress OF the state Iowa has
been held up as q warning example 70 deter
other states from adopting a similar law.