Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1907-01-17
GOVERNORS MESSAGE
Declares for Two>Cent Fare and Reduced
Freight Rates.
SPEAKS FOR a PLURALITY PRIMARY Law
Contributions by Corporations for Political Purposes
Should Be Prohibited and the Professional
Lobbyist Should Be Abolished

hopelessly. wrong. 1t costs the railway
company Just as much to carry passen
ger VINO has purchased 2O00-mile book
per nile, as II does to carry a passenger
WHO mas bought single ticket for 100
miles; Indeed, I think the former costs
uttie more, for the use Of the mileage
oOok entails more expense in the main
tenance of extensive bureaus for identlf,
cation auditing and Relating than the
sale OF tickets of tickets at stations The
only advantage derived by the railway
company is the interest upon the pay
ment In advance, and this does not war
RAM any appreciable reduction In the rate.
! II the practice OF making low rates for
excursions, conventions, meetings of asso-
cations, and the like, Is Improbable,
ine railway companies can easily abolish
~. FOR my part | can see no justice in
| tne custom which compels the farmer and
ms family, or the merchant and his fam
| ny as they so from place to place, either
| Ior pleasure or for business, to pay a
part OF the cost of carrying men to con
| EehtlOns or TO gatherings of any kind !:
ana much less can | perceive the wisdom
OF making our people pay, as they move
ABOUT engaged In their ordinary affairs,
s sSf losses incurred In taking train load
| AFTER train load of pleasure seekers TO
points or entertainment or amusement, or
| Iand seekers, as they journey to distant
states In the hope of finding riches that
'hey could more easily discover at home.
These things, however, are entirely
within the control CT the railway compa.
MES. II we give them an opportunity to
TAKE Two cents per mile from everyone
VINO rides upon their trains In Iowa. and
they avail themselves of the opportunity.
as they can. their revenue from the pas.
senger traffic will not be reduced q sin
gle dollar; on the contrary, according to
universal experience. 1t will be increased.
III on the other hand, the railway com
panles. with the right to demand two
cents per mile from all who travel. find II
advsntageous, by reason Of Interior and
e1trinsic benefits. to reduce the rates IN
der certain circumstances below the maxi.
mum, and thus diminish the average rate
nctua lily received, they cannot assert that
the law has done them an injustice.
sranu nrmiy 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 paw
th Gvn; and the burden Is laid upon
II Is discriLlnation which cannot be
defended, and which ought not to con.
tihue. IL VIII not be forgotten. either,
r mat the prohibition, against passes al.
prohibition of which shall speak pres
entity, and which | hope will shortly be
IN torce. Will add materially to the reve-
nue. OF the railway companies, and will
help greatly Ia maintaining the average at
or above Its rr"sent point
What | have raid has been mon the
hypothesis OF T'-ict division between
the earnings of tin passenger and freight
, I'M, 40 NOT t'"cede, however that
the proposal for tive .4>ut passenger fares
Is TO be tested wholly by any such cri.
ttrion. I prefer to loo: OF the earnings
OF the railroads In Iowa -S whole, and
II they are found to be snore than they
should be. II Is not very material to in.
quire whether twC-IgLt passenger rate
viii or will not be, In arS OF itself. pro-
ntahie; The chief business Of railroads
IN m ms state is the transportation or
freight. and It clearly appears from the
arguments laid before you last winter
that they regard passenger tranfsc as in
cidentai, and do not attempt to make II
the source OF anV considerable net earning
The gross earnings OF all the railroads
upon business done in Iowa for the wear
1905. not including interurban railways
was S62. 1872. 10000. In ascertainIng these
earnings Iowa Is given a mileage proper
tion upon all Interstate traf1c. II is nor
safe to accept the report Of any partIcp
lar railway company respecting the amount
expended for maintenance and opera alton.
lnasmnch MS the variety In the methors |
OF bookkeeping destroys the value OF any
one report. 1t Is fair however TO resort |
10 averages, and according to the com |
made by the Interstate Com. |
merce commission, the average percentage
Of gross earnings for maintenance ana
operation throughout the United states f.
a little less than IS per cent II we as.
sumo 6S per cent as the fair proportion
land ! am OF the opinion that the as
will DO the railway compopIes
no injustice) the net earnings Of our
railroads upon business done in Iowa FOR
the year 1908 were $2O,O03. 53s "a. This
S S3gL s wiI' o pay per cent Interest upon
Interest upon S2s7.O5o. 90 The Iast
assessment fixed the actual value OF the
railroads In the state at s"49.34s 10000
me Executive Council. however. chose to
apply the same proportion of value as II
believed had been applied to farm prom
arty; namely. about four-ifths increase
Ing the value by the addition of one-ffth,
21S53G 10. 1t will be remembered. how
ever. that in reaching this value, the
Executive Council was. largely influenced
by the gross and net earnings. md in
been expended In the construction NJ +bo
properties II is manifest that when Won
come to determine whether the net earn.
,hgs are TOO great you cannot take SIS
earnings. but must adopt some Other
method. II II he asserted that n Is nm.
fnir to, take the gross and net earnings
IT single year, it may he OF interest
to inquire what these earnings have been
during the last FIVE years.
In 1901. the gross earnings were $50
99;o4$00 in 1909. $50, 466.3O5 90 In
1903. $5S.466. $4,000: in 1904 s57.3o6,. |
500. 792.3O7. 90. The average gross earn.
lngs for these five years are s5S, o4O 34S 90 |
Using the, percentage for ascertaIning net
earHtpgs ,s heretofore or 9 mentioned, the result
earnings per year during the last five |
years. This sum will pay per cent In
terest upon S310.615.1S9 1t will nav
per cent interest upon $500 POI 5e1 % |
These rates Of interest are snr1cientIn |
liberal when you take into consIdarotioS |
the fact that practically half the cani
talizatiOn of railway properties Is rs1pa
sented In bonds, the average interest mon
which Is about per cent. The osce,
tainment of the sum upon which .h
earnings of railway companies sbouhS
make reasonable return Is not easv ~ |
you accept the basis presented by the ne.
proper capitalization very quickly / have