The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1910-11-04
ACCUSES RAILROADS
Of FRAUDS
COMPILATION OF EARNING RE.
WIZ PORTS is ATTACKED BY
STUBS.
Governor of Kansas Also Offers to
Drove That Valuation Of Railroad
lines Are Excessive-curse OF the
business in This Country-is High
Finance.

chicago. Oct. 29.-Gov. w. r.
c+ubbs of Kansas on the witness stand
;, the interstate commerce commits
zion rate hearing, declared that
W. could reproduce at a profit to him
no1f as A railroad contractor all the
noin lines of railroads in Kansas at
1000 a mile and reproduce the
sroncb lines for $4,000 mile less.
In addition to presenting these esti-
MATES as a railroad contractor, the rail
road reproduction figures being many
Zines as large as his figures, Gov.
ctubbs declared that he views the rail
road situation literally but he pro-
tested vigorously against stock manip-
ulation and excessive valuation Of
properties.
Bames the People.
81 don't believe the carriers should
no trodden down." said Gov. Stubs.
"but he should be made to show to the
interstate commerce commission what
he has invested. He should have q
liberal return on his actual invest
ment, but he ought to bring in his
hooks and show just what he owns.
THE people are good deal to
blame for the present conditions.
They have allowed conditions to grow
I'D and many persons have bought
stocks and bonds of railroads on alb
normal returns. And all the while
the carriers have been taking millions
and millions out of the returns to
build expensive structures and then
the next year have capitalized the
structures and expect to pay dividends
on the increased capitalization.
But there, l don't want to make a
speech"
Calls Railways Methods Fraud.
Il think it is a fraud" continued the
witness, for a railroad to take out
millions from it's earnings and build
permanent structures and improve
cars, as the Santa Fee did, and appro-
pirate it to be used for betterments
and improy ements and then say only
sS65,0OO of net revenue was on hand
when, as matter of fact, they had
100000 and had taken out all kinds
Of money for improvements"
Gov. Stubs declared that as his
figures Of $4,000 a mile of main line
road he would make 100000 on a
contract to reproduce the Kansas rail
roads,
Right of Way Donated.
Il had proposition up about four
years ago. said Gov. Stubs, ito put a
line $50 miles through the best part OF
Kansas, from BelIeville to Wichita.
agreed to build the road, furnish the
right of way, lay hardwood ties and
furnish everything for $4,000 mile
and would have made money on the
Jop. But the railroads did not want it
lhlnk they had an agreement and did
nOt want north and south line in
Kansas. The right of way would have
peen donated. Talk about right OF
way. Why, gentlemen, one-sixth of the
ialla IN Kansas has been given to the
railroads.
High Finance Curse.
Inc curse of the railroad business
~ .hls country is stock juggling and
Isn nnance. Stop this high finance
Make every dollar of capitalization
lepresent dollar invested in the road
anu people will fall over themselves te
W! railroad stocks and bonds"
FRANK Ryan of the Topeka state
vOard Of railway commissioners; Will
a nam Nuirhead of Topeka, special as
als'"nl TO the attorney general of Kan
ssS' ana }. R. White, traffic manager
Dig Kansas City dry goods house
preceded Gov. Stubs.
Rebates Cut Jobbers' Profits.
MT Ryan and Mr.. Muirhead told o.
.alhentable condition of the prop
ss OF the Missouri Pacific in 100;
st aen, Mr.. Ryan said, people were
naiu 10 ride on it, and of later i'm
pEovements
W., between 1900 and 19O5,' said Mr.
l'e' we paid from 80 to 40 cents
t tsS nan the s1.47 rate from the Allan
eSo seaooard. This condition was no
cos ep'onal with us; it was matter o.
spa unloh knowledge that others were
wv the low rates."
all ' ;es said the rebates applied t.
ca,. Inbound freight and covered 80 pei
noa ' Vi the goods received by his com