The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1907-08-24
SEEK ONLY JUSTICE
PEOPLE HAVE NO THOUGHT OF
INJUaING RAIL ROADS.
Justice Brewer Seems to Look at
Events Through a Glass Hinged
with Corporation CoIors-
Democratic Position.

Judge Brewer of the supreme court
| has taken time by the forelock and
has decided against the reduction of
| railroad rates in advance Of the ap-
| peal of the railroads reaching the SUI
| preme court. In an address at MIL
waukee before the annual meeting OF
the agents of the Northwestern Mutual
Insurance company he said:
There is much said about the rail-
roads. 1t is a popular practice to say
that they are very wicked; for in
stance, like life insurance companies.
There has been a great deal of wrong,
such as granting of special favors,
bad stock speculations, and the like.
But l say to you that, taking the earn
ings and the MONEY invested in rail-
roads as a whole, there is not a fair
return on the money invested. The at
tempt to squeeze those who built up
the railroads, and through them the
country, is not right. The men who
invested their money are entitled to
a reasonable rate of interest"
But Judge Brewers conclusions are
not justified by the facts given by the
last report (1905) Of the interstate
commerce commission. On page IS OF
that official report will be found the
statement that, as the result of that
years operations of all the railroads
there was a surplus Of $89, 043, 400,
after paying all interest and dividends.
being an increase of $32,314,15 as
compared with the previous year. And
the report adds that:
This steady, constant surplus from
operation since 1898 Is evidence Of the
continued prosperity which attends
the operations of railroad prosperity"
AS the gross and net earnings great
iy increased during 1896, and LIE still
increasing during 1897, although the
operating expenses have somewhat in
creased SO that the net earnings are
not as large as during 1896, the rail-
roads on the average are making
much more than enough to pay reason
able dividends.
The Union Pacific, for instance, de-
clared a dividend Of ten per cent. on
it's stock, and it is said the Great
Northern aid Northern Pacific are
earning Is per cent. after paying in
terest on bonds and other fixed
charges. Many other railroads might
be cited that are earning enough to
pay much larger dividends than they
do pay. If there was space to point
out the overcapitalization of most OF
the railroads, and how they are pay
ing interest on watered stock and
bonds, there would be less cause to
assert that on "the railroads as a
whole there is not a fair return on the
money invested" Every railroad
whose stock is quoted above par is
earning much more than a fair inter-
est on the money invested, and many
Of those railroads whose stock is be-
low par, like the Southern and Rock
Island railroads, for instance, would
pay large dividends on a legitimate
capitalization.
Everyone, except perhaps the So
cialists and those who desire govern
ment ownership, must wish to see the
railroads prosperous, but they do not
feel that they should be called upon
to pay "all the traffic will BEAR" but
such reduced rates as would allow the
railroads a reasonable return upon the
money invested or upon what they
would actually cost to replace. That
is the Democratic position and will be
the policy of that party when entrust-
ed with power. Unreasonable railroad
rates will be made reasonable by state
and national legislation, and even
Judge Brewer and the balance of the
supreme court, if his brother justices
view the matter as he does, will dis
cover in the end that public opinion
will compel justice to the people as