The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-07-11


construction, permanent improve
ments. and equipment, was only $57.-
$50 mile. and a competent railroad
contractor told me recently that he
would reproduce the road as it is to-
day for S35, 900 a mile. Now here is
a railroad which according to its own
statement did not cost for cOnstruc-
ton. permanent improvements and
equipment but $57.6S2 a mile. which
could be reproduced today for $4,000
a mile. that has an interest bearing
indebtedness of about $4,000 and
has a full capitalized Indebtedness of
$152. 900 per mile. The interest bear
ing Indebtedness is mortgage on the
road and the interest must be paid
| from the earnings. This Indebtedness
| is, therefore. mortgage on the COM
| merce of the country through which
| the road runs. and about 1900 per
mile of that mortgage. onethird of
| it, represents no investment whatever.
1t is simple loot taken from the re-
sources of the country through which
the railroad runs. This money has
doubtless gone to make up the stu
pendous 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 a few months ago. and for which
this fellow called Prince Helie de
| Sagan has pursued Anna Gould with
such industry over Europe.
Long Votes to Maintain system.
From the foregoing it 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
I the entire cost of the railroad and
more than four times its actual value
| The interest on this mortgage is paid
hxFr Gov
| every citizen of whatever vocation
who ships pound over this railway.
| And this is the system which Sena
| tor Long votes to maintain. 1t is in
| defensible. and I contend that a law
should be enacted forbidding any rail-
road or public service corporation
| from bonding or stocking it's property
| for more than it cost, believe fur
| ther that it should be made a criminal
| offense for anyone representing a rail-
! road to spend any part of the money
received for the sale of the stocks and
bonds of the road for any other pur-
pose than the construction or i'm
provement of the property. and that
| the penalty for violating this law
should be imprisonment for the man
who violates it instead of a fine upon
the corporation, which in the end the
/ people would have to pay. In these
views I 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
| uneQuivocal position the president
| had taken against over-ca pitalization.
| He then said:
| L could cite many other instances
where the president has made similar
| declarations. yet Senator Long. who
for campaign purposes proclaims
| himself in harmony with the presi-
| dent in the UntpS a n eff linn +
ing the over-capitalization of public
| service corporations"
He then showed the alleged incon-
sistency of Senator Longs vote on the
amendment 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 Value Railroads.
Continuing. Mr.. Bristow said:
| Not only should a 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 these things must
| be provided; the road is entitled to
first earn money to pay it's 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 fur
return in interest and dividends on the
| volue of property. Any rate that does
| not make provision for these three
| items of expense will be declared I'M
| constitutional. Now what is the value
| of a railroad and how much money is
| 1T entitled to earn interests and divi-
dends upon. Take the Missouri Pa
cific railroad. 1t is stocked and bond
| ed for $152.000 a mile. 1t cost, ac-
cording to its own statement, up to
the year 1904 all told for construction,
| equipment and permanent improve
| ments about $4,000 a mile and a part
| of this sum was doubtless paid from
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