Newark evening star and Newark advertiser., 1910-06-20

rives its profits of operation from the
public in It's passenger, freight and
| other sources entire. II the rates In
any one department are not sufficiently
remunerative, and for that reason
should be advanced, then why should
not the rates from which enormous
profits are derived be correspondingly
reduced?
1t is the business as a whole that
shows a profit or loss. Should our
railroad friends convince you that
| they are losing very small per cent,
on the present communication rates-a
matter of very grave doubt--as basis
for advancing their rates, as they pro-
| pose in some instances nearly 80 per
cent, let us inquire as to the enor-
| nous profit on coal and miscellaneous
freight, and the other sources of reve-
nue. which enables, for instance. the
Lackawanna Company to earn not 80
| per cent. on the entire outstanding
| capital. and the other roads cores
pondingly excessive profits. as the
! Erie road has also shown on its pur-
chase price few years ago at $3.50 per
share of the Pennsylvania Coal Com
pany. It's poor rule that won't work
| both ways, even in railroad bookkeep-
| Ing legerdemain.
You may, perhaps, remember that at
the time of the settlement of the an
thracite coal strike through President
Roosevelt's Intervention a number of
years ago, 1t was shown that the in
crease OF pay to the miners averaged
about ten cents per ton. This was at
once made the excuse by the coal COM
bine to boost the price of that article
to the public fifty cents per ton. And
under the "Divinely appointed" head
of that combination this increase was
agreed upon by all the coal roads, and
has since remained. The exactions of
this overbearing and over-mastering
monopoly in one of the first necessities
of life Is we'll known. The fabulous
profits in handling this product of the
mines, all prepared, almost ready for
use by nature, and the small cost of its
transportation. has been repeatedly
shown The prices the public are now
forced to pay under the present monop-
| olistic conditions constitute. 1t seems
to me, an injustice compared with
which the proposed increase in passen-
ger rates. unwarranted and unjust as
that may be, Is of secondary import
ance.
Then. too, consider the water in the
capitalizations. One of the great for
tunes acquired years ago grew out of
the capital stock issued by the Morris
and Essex Company. and then loaded
on the D., L. and w. Company by
lease, somewhat after the plan of the
lease of the South Orange trolley line
to the North Jersey Company
You will recall this thimble rigging
deal by which few estimable gentle
men. organizers. owners and In control
OF the North Jersey Company issued,
virtually to themselves for that 999-
year lease, $6, 400. 900 of per cent. bonds
and $15,000.000 OF North Jersey Company
stock. And how. as time went on and
the dear public continued to pay the
freight" the Public Service Corpora
ton was organized and proceeded to
squeeze out the water (?)--as its presi-
dent has repeatedly contended since
by issuing for and in exchange the flf-
teen millions of on-dividend-paying
stock for 40 per- cent.-$6, 900, 900 of the
interest-bearing P. s. C. certificates.
So that the South Orange branch of the
p. s. c. line is now, like the Morris and
Essex road, bearing an enormous bur-
den This in fact in the P. S. C. white
mans burden Is no less than per cent.
interest on the $6,400.0O0 of the bonds
and per cent on the s6,OOo.0O0 of Public
Service certificates. total interest
charge of more than 100000 annually,
and for the coming $50 years future.
Even the waterlogged Reading Com
pany, with its huge capitalization. is
today selling at $154 per share for its
common stock
The proposed Lehigh Valley stock
dividend Of SO per cent. to the stock
holders of that company free gratis;
and the extra per cent. on Central of
New Jersey stock recently declared,
putting that stock on a 10 per cent. an
nual basis and enhancing it's market
price to s2S5 per share. are other in
stances apropos of this same old, old
story.
Next in order we should have the
P. s. c. representative before your COM
mission. urging the right to charge
higher trolley rates, in order to meet the
'inceased cost" and incidentally to en-
able the company to pay the expenses
| C)-interest, of course, included--on its
| South Orange avenue line.
| And SO the play goes on. with the
| Dalzells of New Jersey In many of the
| official saddles to help out the drama.
tweedling the public by obscuring the
fundamental substance In chasing the
lesser shadows; and in exactlng enough
to keep the stock-watering factories go
ing and the prices Of the gilt-edged
stocks rising.
In the meantime the spirit of progress
toward improved conditions Is active.
these colossal stock jobbing operations
are becoming better understood. and
such fallacious contentious as are now
being put forward to Justify increased
transportation profit under present con-
ditions will soon be measured by their
worth.
doubt IL you can perform more val
liable public service than by taking an
advance active position in these matters;
and your official position gives you an
opportunity to do so and to brush tside
the cobwebs of sophistry which the In
terested corporations are now endeavor-
ing to spin in beclouding this subject.
Sincerely yours.
| FRED'K w. KELSEY.