The independent., 1903-07-02
PUBLIC OWNERSHIP
Being the Second Of Mr.. Snediksr's Letters
TO the Kansas City WorId-Trans-
portation at Cost

p0rtation at Cost
About a year ago Chairman Knapp
OF the interstate commerce commits
sion told us that discriminating
charges on our steam railways had
. been one OF the II in causes in build
ing up certain trusts, had bank
rupted thousands of our citizens and
built up the fortunes of few men.
That such power to discriminate was
the power to build up cities here and
destroy TEN there, ali at the Wnin
and caprice OF some railway manager.
The only means Of adjustment, said
Mr.. Knapp, ''is government owner
ship and operation
Every business man, every farmer
and stockman-in fact every man VINO
must need ride on steam railways, ami
those who would like to ride if they
had a pass, are more or less inter-
ested in the rates charged for use OF
our steam highways.
1t is not the purpose of this paper
to go into details, more than to show,
in round numbers, that it does not cost
much to carry one person mile or
q ton of freight mile, when train
OF freight or passenger train is head
ed for port. Some railway systems
move a ton of freight for three and
one-half mills per mile; other sys-
TENS charge three times as much for
the same serv.,e. A select few ride
on passes, some pay 4 quarter OF
cent per mile, tt, many pay six times
what the service is worth. So as a
matter of fact, nearly all of us are in
terested in cheaper Transportation OF
person and property.
In trying to demonstrate tlat 10
cent charge is all the service is worth,
to get on passenger train and ride
to the next station or end of the di-
vision, let that b, 100 or 200 or more
miles, no more figures will be used
than is necessary to show the aver
age man the present immense profits
in the monopoly of steam railways,
owned by few of our private citizens.
From the last report of the inter-
state commerce commission we find
for last year that the
Total earnings and in
come from all sources 81 ,768, ,272, ,486
Less operating expenses. 1,030,397 ,270
Total gross income. e...$ 738,875,216
In operating expenses, s220,410,298
we're expended in maintenance of way
and structures, bett.rments; 1884,
358, ,454 in the maintenance of equip
ment; $544 ,09S, ,S02 in conducting trans
portation and $S1 ,520,716 in meeting
general expenses.
AS the earnings and incomes were
from 195,561 miles of railway the av
erage income per eao-. mile of line
was $S,042 and operating expenses
SS,269, or 5S.3 per cent of all income.
While net income per mile of line was
So 3,773, or Alt per cent.
Assuming that money can be OBJ
tanned at 4 per cent and the net in
ccme being s3,773 per mile of line,
each mile is or can be capitalized in
round numbers for $4,000 per mile.
Or the 195,561 miles of railway have
a per cent earning power on capi-
talization of $1S,500, 900.
Now every mile of these railways
can be duplicated for less than s19.-
600 per mile of line. So that under
public ownership and operation, in
stead of net income C S3.773 per
mile, freight rates and passenger fare
could be reduced to one-third of the
present rate and pay per cent on
actual cost of the physical plant, thus
saving to the people as a whole over
$3.50, 900 annually as income on
steam railway franchises. This item
alone will show that the few men
who control our steam railways have
q taxing power on trade and COM
MERGE equal to If net greater than the
general government.
In the year 1901 the number of pas