Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1907-01-23
contrary, according to universal ex-

perience, 1t will be increased. II on
'ln other hand. the railway COM
| lanies. with the right to demand two
ecrts per mile from all who travel,
| ind il advantageous. by reason of
Interior and eXtrinsic benefits, to re.
auoe the rates under certain circum.
stanes below the maximum. and thus
diminish the average rate actually re.
| ceived. they cannot assert that the law
| has done them an injustice. stand
firmly upon the proposition that the
travellers who are now paying three
cents per mile are paying the fares Of
other travellers who are abundantly
able TO pay their own; and the burden
Is laid upon the people who are least
able to bear it. 1t Is discrimination
which cannot he defended. and which
ought not TO continue. 1t will not be
forgotten, either, that the prohibition
| against passes already in force. and
an enlargement of the prohibition Of
which shall speak presently and
which | hope will shortly be in force.
will add materially to the revenue Of
the railway companies and will help
greatly IN maintaining the average at
or above its present point.
Earnings of Railways.
What have said has been upon the
hypothesis of strict division be.
tween the earnings of the passenger
and freight traffic. do not concede,
however, that the proposal for two
cent passenger fares is to be tested
wholly by any such criterion. prefer
TO look at the earnings Of the rail-
roads in Iowa rs a whole, and il they
are found to be more than they should
he. 1t Is not very material to inquire
whether two-cent passenger rate will
or will not he, in and Of itself, profit
able. The chief business of railroads
in this state is the transportation of
freight. and it clearly appears from
the arguments laid before you last
winter that they regard passenger traf-
| 81. as incidental, and do not attempt
! to make it the source of any consid-
able net earning.
The gross earnings of all the rail-
roads upon business done in Iowa for
The year 1909. not including interur-
ban railways was $62, 100, $1,000. In
ascortaining these earnings. Iowa is
| given mileage proportion upon all
Interstate traffic. II is not snfe to ac-
cept the report of any particular rail-
way company respecting the amount
expended for maintenance and opera.
ton, innsmuch as the variety In the
methods of bookkeeping destroys tile
value of any one report. 1t is fair.
however. TO resort to averages. and
according to the computations made
ny the interstate commerce commits.
sior. the average percentage of gross
EARNINGS for maintenance and opera
tlon throughout the United States is n
little less than GS per cent. Ii we as.
sumo 6S per cent as the fair proper
ton (and am Of the opinion that the
assumption will do the railway com.
panies no iniuSticel the net earnings
of our railroads upon business done
in Iowa for the year 1908 were $780,
M@.a3,i25 This sum Will pay G per
cent. interest upon 1884 .S9o, 3O4.OO 1t
Will pay . per cent. upon S2ST, 05O.-
hiG.oO The last assessment fixed the
actual value of the railroads in the
state at S249.3lS.1 5000. The eXecu.
tive council. however, chose to apply
the same proportion of value as it be-
ievcd had been applied to farm prop.
erty: namely, about fourfifths. In.
creasing the value by the addition Of
one-tifth. the result Is an actual value
of $299,21S.53G.0O
have heard it stated by the rep.
reSentatiyes of railway companies be.
iore the executive council. over and
over again. that the average actual
cost of the railroads in Iowa did not
exceed S20,00000 per mile. There are
now 9,S27 main track miles In the
state. which, tested by this theory
Of value, are worth $l96,540.0 10000
The net earnings of 1906. us you will
observe, We're sufficient to pay more
than 10 per cent. upon such valua-
ton. The average yearly net earnings
for five years would pay 94S-lOO per
cent. upon this valuation. If you take
the cost of reproduction as the proper
test, an average of $4,000 per mile is
about right. Upon this basis, the
"iiioaNS ttN with
submit these suggestions to you
to he reviewed by your mature judg.
ment. and to be used for the purpose
of any action that YOU may take that
will lessen the income of the railway
companies, whether from the passen-
ger or the freight service. ltis SUBJ
iect which invokes high sense of
responsibility, and it demands for its
consideration all the obligations of an
official oath. I know that you will
examine it, and set upon it without
fear. favor. prejudice or oppression.
For my own part, l am deeply con.
WINGED that reduction in the passen-
ger rate is fully warranted. and
therefore earnestly recommend the
substitution of 4 two-cent rate for the
existing tlree-cent rate.
1.-THE governor here submits figures
stowin. freight rates from Chicago to
various points in Iowa and says they
should he readjustedl
Demurrage.
Two propositions will be admitted
without controversy; first, that It is the
duty of every railway company to pro-
vide itself with sufficient motive power
and enough cars to carry the freight
offered to 1t with reasonable prompti-
tude, and to furnish these facilities
without discrimination to the shippers
who ask for them; second, it is the
duty of shippers and consignees to
load and unload cars with reasonable
promptitude, to the end that each car
may perform the maximum of service.
Shippers complain, and in recent times
the complaint has been emphatic, that
the railways do not furnish cars as
they should with reasonable diligence,
and do not move them when loaded,
with sufficient speed; and that they do
discriminate between patrons. The
railway companies complain that ship
pers and consignees are not careful in
loading and unloading ears when fur
nished, and to correct the latter evil
they impose penalty for detention.
which is called, in railway parlance,
"demurragc.'