Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-11-12
our computations. and challenge you

your computations, and challenge you
to explain them.
Your first specific charge against
my statement ia, after quoting the total
interest and dividends, ($SSs,2l5.3S1):
Ion the contrary. the total net OPP
Grating revenue Of all the railways for
which as yet we have the statistics OF
the interstate commerce commission
for 1912. was in that year only $751;
954,536; and after the payment of taxes
they had left only $755, 1856 net OPP
Grating income. In other words. the
figures given by YOU for interest and
dividends exceed by over $4,000, 900
the total amount Of net revenue that
the railways had left after paying their
operating expense and taxes, which
shows for them to have paid the
amount OF return on capital which you
say they paid would have been ply
sically impossible
IN the figure you give as the total
net operating income OF $I55.s69. 1856,
you exclude S255,611, 495 representing
other income as we'll asSl23. sos. 207 in
come from. Incorporating roads. A
substantial! portion, but not all, OF
these figures should legitimately be in
Guided. The net figure for other in
come in 1912, is unattainable at this
date. These figures are given in the
preliminary statement Of the interstate
commerce commission, under date of
July l, 1913. The purchase 81 all capt.
tai issues would certainly include Sc
curities issued for outside Investments;
and this should entitle us to the earn
ings on the same.
Unfairness Alleged.
You arr trying to take an unfair
advantage. when you attempt to limit
the total income or funds Of American
railroads. available for all appropri-
atoms including interest charges, to
the item Known as net operating in
come Il do not criticize your use of
the term income as technically cor
rect). The owner of all the securities
owns all these funds. 1t would be a
queer proposition. indeed, to have the
government own the property, and be
cut off from some portions Of the pro-
fits Of sad property, as you propose to
do
Your second proposition concerns
the total dividends and interest paid.
Our statist!cians figures we're correct
" copied and he still insists that his
deductions therefrom We're correct
that such interest and dividends
should be counted, whether paid to the
public or to the railroads. B. F. Yoa-
kum while chairman of the board of
directors OF the St. Louis & San Fran
cisco railroad. estimated the saving on
bonds, If owned by the gov
eminent. at $4,000 900. (world's
Work. October. 1912, page $3.50. This
is 100000 more than our statis- /
tician estimated as a saving on bonds.
tais figure, as shown in the original
statements, was s17o.ooo,oo0 in round
Notwithstanding the posi-
ton Of these two eminent gentlemen, I
believe your point is correct. that such
totals include Implications which
should be deducted, because of pay
ments TO railroads by other railroads.
resulting from mutual stock and bond
ownerships. If this is correct, the saw
ings on dividends and interest exclu-
sively. (because the government can
borrow at per cent or less; while the
railroads have to pay from TO per
cent) would be only s250,000,0 900 every
year. To me, even this tTif1ing sum
seems worth while. But can readily
the difference in the view
point of a railroad commissioner and
a railroad president.
Even $3.50 900 900 a year would per-
NIT us to grant all the advances being
asked for by the eastern railroads, to
be used-sc they affirm-for better
cars AMI better roadbeds, ETC.; and to