Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1905-01-18
MESSAGE HAS
NEW ISSUES

=
reasons, a study of railway tariffs il
force in Wisconsin at the present
time discIoses the following facts
(which | take this occasion to presen,
for your consideration:
/, Wisconsin rates are still higher
than the rates charged under sub
stantially similar conditions on state
traffic in the neighboring states Of
Illinois and Iowa, where these rates
are regulated by law.
2 The interstate 1ates in Wiscon
sin are genrally higher than the rates
in Iowa and Illinois.
3. The rates charged on traffic in
Wisconsin, on the whole, yield a gross
income to the railroads considerably
above the amounts required for all
operating expenses, for the main,
tenance of property, and for a fair in,
terest or profit on the cost of the
roads.
4. The railway companies are guilty
of gross determinations in favor Oh
certain shippers, and their dis.
examinations as between favored
shippers are likewise rankly unjust.
resulting in the upbuilding OF
monopoly, controlling production and
markets alike.
Wisconsin Rates Excessive.
All figures submitted to you with re-
spect to railway earnings are taken
from the various reports issued by
the railway companies.
Significant as the foregoing rate
comparisons are standing alone, they
become still more pregnant with
meaning when considered in con,
nection with the enormous earn
ings of the railroads. In fact, the
earnings of these corporations better
determine whether the rates charged
are reasonable than any rate com
parsons which may be made.
The interstate commerce COMM S.
sion in a special report last spring,
stated that in 1900 about 240 articles
in the freight classification used in
Wisconsin were raised from lower to
higher classes, while only II reduc-
tons were made. These advances are
still in force, and changes made since
have operated to increase the rates.
The commission also stated that for
the country as whole the advances
in rates IRON 1899 to 1908. when ap
piled to the traffic of the latter year,
means an increase in the revenues Of
approximately $155.000 600.
The railroads are entitled to re-
ceive from the public reasonable
profit, interest or return upon the
capital invested in conducting the
business in which they are engaged.
If legislation were necessary to insure
this, it would be the duty OF the
legislature to pass, and of the execu,
tive TO approve, such legislation. An
analysis of the earnings of Wisconsin
railroads taken from their own re,
ports presents facts which cannot fan
to produce profound impression I'D
on the people of this commonwealth.
and urge every member of this legis-
lature forward in the discharge of his
duty.
Consolidation and Discrimination.
1t must be apparent that the railway
companies not only have the power
to maintain their present high rates.
but to increase them at will. Com
petltlCa can no longer be relied upon
to afford protection. 1t was never
operative excepting at competitive
points, and then only at intervals.
But even that frail check has been
eifectually removed The railroads OF
the country have been organized
through a system of consolidation
watch has united all interests and
eHectuaIy stitied all competition.
Under this new order of things the
railroads of the country are merged
into six great systems, controlled BY
SIX groups of men, each group prac
tically controlled by one individual.
Out of a total Of 100000 miles OF
railroad covering the country we have
today 17S,307 miles controlled by six
groups, with an identity Of interests
which IN effect makes it a single con.
trol. 1t does not oyerstate the case to
say that th5 six groups in question
control nearly 80 per cent of the vital
railroad mileage of the country.
Under this plan the country Is
divided by agreement among these
controlling groups, each group ruling
supreme in its own section. With the
interstate commerce commissico
powerless to afford relief in respect
to interstate traffic without congress.
sional legislation. the producers ana
consumers of the country are wholly
at the mercy of the men who rule in /
these six systems, except in such
states as afford protection upon the
traffic within the state under state
laws. With the exception of less than
Il per cent the steel railroad mileage
OF Wisconsin is either owned or con.
trolled by The owners of these six
systems.
The great trusts and combinations
OF the country, owe their life and are
largely dependent for their existence
upon special rates special privileges
and close association with the great
railway systems. The railroad is a
natural monopoly. It's line. once es-
taDHshed IN given territory. natural
y excludes other capital from invest.
ing in the field which it covers. OF
all monc1olies, the railroad is the
most extensive and far-reaching in IFS
control of industrial forces. Under
listing conditions al great business
enterprises stand in a relation NJ
railroad transportation, is apparent
and is Of great moment in considera-
.