The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1908-07-31

which the railroad runs. This money
has doubtless gone to make up the
stupendous fortunes of the Goulds and
promoters of this railroad. 1t is a
part of this money that Count Boni
of France gave up with such reluct'
ance few months ago, and for
which this fellow called Prince Hello
de Sagan has pursued Anna Gould
with such industry from Europe.
Long Votes to Maintain the System.
From the foregoing 1t appears that
the people in the country through
which the Missouri Pacific railroad
runs are compelled to pay rates on
their traffic to provide interest and
dividends upon practically three times
the entire cost of the railroad and
more than four times its actual value.
The interest on this mortgage is paid
by every farmer, every merchant, and
every citizen of whatever vocation
who ships a pound over this railway.
And this is the system which Sena'
tor Long votes to maintain. 1t is in
defensible, and | contend that law
should be enacted forbidding any rail
road or public service corporation
from bonding or stocking its property
for more than it cost, l believe fur
Their that 1t should be made a Grimm
al offence for anyone representing a
railroad to spend any part of the
money received for the sale of the
stock and bonds of the road for any
other purposes than the construction
or improvements Of the property, AMI
that the penalty for violating this
law should be Imprisonment for the
man who violates it instead of fine
upon the corporation, which in the
end the people would have to pay.
In these views l am glad to say that
! am in harmony with the president.
Mr. Bristow then quoted extensively
from the presidents messages and
speeches, showing the positive and un,
equivocal position the president had
taken against over capitalization. He
then said:
where the president has made similar
declarations, yet Senator Long, who
for campaign purposes proclaims him
self in harmony with the president, in
the senate votes against limiting the
over capitalization Of public service
corporations.
He then showed the inconsistency OF
Senator Longs vote on the amend
ment to the Lake Erie and Ohio River
Canal bill wherein LaFollette sought
to limit the capitalization of the canal
to its actual cost
Should Ascertain the Value Of Rail
roads.
Continuing, Mr.. Brlstow said:
Not only should law be enacted
limiting the capitalization Of public
service corporations to their actual
cost, but an amendment to the Inter.
state Commerce Law should be made
giving the Interstate Commerce Com
mission authority to ascertain the val
ue of the railroads we now have.
The supreme court of the United
States has decided that Congress has
the authority to fix the rates which
public service corporations may
charge for serving the public, but in
fixing these rates three things must
be provided; the road is entitled to
frst cara money to pay its operating
expenses; second, for its maintenance
that is, to keep the line in good con
ditions and make necessary improve
ments, and third, to provide a fair
return in interest and dividends on the
value of property. Any rate that
does not make provision for these
three items of expense will be declared
unconstitutional. Now what is the
money is it entitled to earn interests
and dividends upon. Take the Mis-
souri, Pacific railroad. 1t Is stocked
and bonded for $4,000 a mile. 1t
cost, according to its own statement,
up to the year 1904 all told for con-
struction, equipment and permanent
improvements about $4,000 a mile
and a part of this sum was doubtless
paid from earnings. Competent author
ity says that the road can be repro
duced for $4,000 a mile, or less. Now
in Kansas we have new tax law and
under that law property, is assessed
for what it is worth, what it would
sell for under normal conditions. The
law requires the railroads to state to
the tax commission what is the actual
value of their lines, and the Missouri
Pacific in compliance with this re-
qulrement, made a statement to the
state tax commission giving the act
ual value Of its lines in Kansas, and
the highest value placed on any part
of that road in this state was the line
running from Atchison to Leaven
worth, which was valued at $22,5
mile, and the average value of all
of its mileage, including the subsidiary
lines in Kansas was fixed at 1898
mile.
Now let me ask what is the actual
value OF the Missouri Pacific railroad