The Oakley herald. [volume] (Oakley, Idaho) 1908-1961, 1911-02-17
Those 800 Per Cent Divi-
dends.
Boise StatesmAn,l J

|
Now every time a big strike
threatens, and the engineers,
fremen, conductors, traipmen or
machinists serve notice that
they will walk out unless they
get quick raise, the railroads
come into court and show that
if they give this raise they will
have to proportionately raise
freight rates in order to meet
the extrs cut to their employees.
OF course. the trainmen get their
raise every time, because the
railroads can't afford to suffer a
complete tie-up and allow the
country's business to be ruined
by stopping transportation
everywhere. When the railroads
start to raise their rates to
meet this added cost Of employ
ment the commission troths at
the mouth.
7 Every reasonable man con-
cedes that the railroad ra te
problem is a deep one, and that
the railroads as we'll as the ship
pers have their side and their
rights.
But, what about these robber
express companies'
Leaving diatribe aside. let us
just take a few significant hg-
ures: They prove that the ex-
press companies, which are mere
ly railroad "side shows" are a
thousand times worse than the
railroads. The truth is the rail-
roads do the work but the ex
press companies get most of the
graft, and are guilty of worse
robberies of the public.
The Adams express company
was paying 8 per cent dividends
on practically $11, 100000 CAPT
talization in 1890. Its actual
Investment, by its own books,
was less than $1,OOO,OOO. 1t
really paid dividends amounting
to about 8 per cent per annum
on it's actual investment. Be-
sides that, it was accumulatinR
a surplus. That surplus amount
ing to $12, 100000 in 1890, was
distributed to its stockholde rs
in four per cent bonds, the $12,
100000 being deposited ia trust
to meet bond principal and in
terest.
At the same time, the divi-
dends on American Express Co.
stock were reduced from 8 to A
r per cent. But as the stockhold-
ers had been given 4 per cent
bonds, they suffered no loss.
In 1904 the dividends on stock
had mounted up TO 10 per cent
per annum. The stockholders
were still drawing 4 per cent in
! terest on $12,OOO,OOO of bonds
In 1907 another surplus o
$24, 100000 had accumulatedir in
the company's treasury. This
was also distributed as 4 pei
cent b n d s to stockholders
Dividends on the stock have beer
maintained since then at IL pei
cent per annum. In the mean
time, however, another surplus
, of $25, 100000 has accumulated
But the actual value of the com
pany's property has increased
only from 81 900, 900 to Sc, ,OOO,,
} 900. In surplus alone the com
pany has accumulated SCI ,OOO,'
900. Besides that, it has paid
in dividends and bond interest
another $5O,OOO,OOO. This
makes total of $11O,OOO,OOC
in profits. This has been got
ten out Of an actual investment
never greater than $6,OOO,OOO
1t is nothing short of robbery
Take Wells, Fargo and com
p panv. This corporatIon h .
paid regular annual dividends o
10 per cent on its enormously
watered capitalization. Beside,
; doing that, IN 1910 it paid ar
extra dividend of 300 per cent
Just try to remember that d1vi
= dend-3OO per cent!
Other express companies hav,
been equally successful in rob
bing the public. Express com
panics, like railroad companies
street car companies, telephone
companies and water companle,
are strictly public service" cor
porations.
No public service" corpora
tion should be permitted to rol
the public, taking profits far il
|. excess of value of service
Some facetious cynlc once oh
=" served that thare are three rea
sons why there is no parcels pos
lsystem in the United States-th,