The independent., 1907-04-18
Twentieth Year.
A NEBRASKA INSTANCE

country i'll Nebraska tfan the zone III
teen miles wide extending from Oma-
ha westward through Wahoo, Davld
City, Osceola and Aurora to Hastings.
This zone is the prospective domain
Of the Omaha & Nebraska Central eiec-
tric railroad to be tuilt in case suifl-
cient bonds are voted by the townships
traversed 900 has already been vol
ed-and sufficient stock subscribed by
anybody who has the money. AdVef-
tiseinents of this project offering Stock
for sale contain many interesting
statements. Stock of a par value OF
500 a share is offered for SIS, and be-
sides as a premium the purchaser gets
an order on the new road for Sll.2o
worth of passenger or freight trans-
portation. The net price asked for eacn
share Of stock is therefore $3.50 Tn1s
is important in view of the succeeding
statement that this stock is dead Ger
tain to advance to S1o0 as soon as the
road becomes operative" Persons VINO
wait too long to buy will be the losers
because. again referring to the adver-
tisement the offer cf q transportation
premium will be reduced IN lew
days.n The certainty Of prohtaele
business is based on the intention OF
the new line to '1aul everybody at one
and half cents a mile! Who is go
ing to do the business, the roads that
carry people for two cents mile u
those that haul them for cent ana
half?"
The railroad discussion Of the last
two wears has definitely established an
essential difference between establish
ing a railroad through rich, settled
AGRICULTURAL district and promoting a
gold mine in the Rocky mountalns. Inc
railroad as a semi-public enterprise
having special privileges in acqulfih2
a right of way and performing service
Of a public character, is obligated 70
nerforn, the service for which II is
chartered at a reasonable profit on the
actual capital invested. The purchaser
Of stock at s13.75 a share may reailze
a. fair profit, six, eight or ten per cent
on his s1375, but if the Nebraska rail-
road commission does it's duty the
nrofit will never be allowed to rise hlgn
enough to increase the value of the
share materially above the $3.50 PAID
for it. When profits grow so large as
to tend that way it will be the duty
of the railroad commission to reduce
the rates, even below the cent and a
half o, mile proposed to be charged
This would also apply to the lines with
which the new line would have to dl-
vide the business of its rich zone, the
lines it parallels between Omaha anc
Waboo. between David City and Osce-
ola. and between Aurora and Hastings
al, told considerably more than hall
IT'S l5o miles of proposed length. These
lines would of course, not permit the
new line TO get all the business at tht
lower rate unless lie lower rate wer'
unprofitable In which case the more
business the new line gets the better
il wonid be ultimately, for the old one
Rairoad stock, in line, must be an In
vestment, and in no sense a specula
ton.
these facts do not argue for q
against any particular new railroad
They do WARE the .ycsting public tha
the day OF railroad kiting IL past. tina
there Is 40 legal or legitimate wa
10 our i dollar into a railroad and TAX
o,F moro than a fair interest ON In
dorar itself, and that II Is therefore te
#lrahle Thai naw lines ha built purel'
with reference to tho commercial need
ma ah.nlntnlv Mlthont referenae V u