The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-03-13
RAILROAD NEWS.
Reason for Wave of AdverseRail-
road Legislation Is Not Clear.
a,--T -
One-third Of States Have Con-
sidered sReform" Measures.
PAY HIGHER TAXES
Than Other Institutions, Ac-
cOrdlng to a Late Report.
Other Railroad News of In
terest.
PAY HIGHER TAXES

| That the prevalent paroxism of an
tirailroad legislation does not origin
ate with the big shippers of the coun-
| try. is evident from the number of
| them who have taken a public stand
against it and argue that the interests
| of trade and commerce demand that
/ it should at once cease.
| In the latest issue of AT the Mar
| ket," published by Bartlett, Frazier &
| Darlington, there is an article in
/ which the whole matter is discussed
! with particular vigor, and in which the
| following occurs:
About one-third of the states have
recently passed or have under debate
in their legislatures bills intended to
harass the railroads. Most of the pro-
posed or enacted laws aim at hori-
zontal reduction of the passenger
fares; but some of them are to en-
| force reform ideas about operation
and management, all regardless of
| cost.
Almost all this legislation is based
! on the erroneous belief now generally
prevalent among those who have not
studied the matter that the railways,
as they stand, represent generous
bounties from the government; that
they habitually evade their just bur-
den Of taxation; that they have charg-
ed excessive prices for transportation
service; that by reason of these excess
sive charges they have earned unduly
large profits; that they have watered
CAPITALIZATION.
purpose of concealing excessive pro-
fits; that somehow they thrive by pre-
datory methods and not by dint of the
most careful and farsighted manage
ment.
1.-The American roads have been
built principally with private capital.
Practically not a dollar of cash sub
sidy ever was granted to them by the
government. 1t is true, indeed, that
they were granted liberal grants of
Io I've prt
from the railways. and when the roads
were built, in some cases, large parts
of the land grants were forfeited.
I'm point is the recent case of the
Missouri, Kansas and Texas, recently
decided by the supreme court. The
land grant included more than 3,00O.-
600 acres through Indian Territory.
Every condition precedent to its ten
ure was fulfilled by the road, but that
did not prevent the passage of the
Curtis act and the partition of the
lands in severaIty to the Indians.
This land at present would be
worth at least S30,00O,000 to the rail-
way; but the decision means that it
viii never yield dollar to the com
papy's treasury The same of the
Southern Pacific, which enjoyed a
nominal land grant, when the land
was valueless.
Passing now to the second point in
the case, taxes. what de we find? In
earned 1915, 626.500 net. after operat-
ing expenses Their tax bill for that
year was $25,435, 23O. In other words
they paid to the states in taxes about
one-twelfth of their net earnings
Rates per ton per mile have pro-
excessively gone down. According to
Senator Elkins's figures, the saving
to the public since 1870 has been 81
000.000.000. and our freight service
costs US three-fifths as much as the
European merchant has to pay for
less efficient transportation.
1.-The whole country is talking about
2 cents a mile, as if that would be a
revolutionary reduction in fares; but
the truth is that the railroads in 1905
received 400 of a cent less than 2
cents a mile per passenger 1t is per-
fectIy clear that to obtain for the 217.-
600 miles of all main line an average
rate per passenger per mile of 1862
cents, there must have been a very
large number of passengers carried at
I1A