The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-12-31

state commerce commission to certain
eastern railroads has very much
strengthened the Plea OF the western
Inns for an increase in rates is adj
mitted upon every hand. II the east
ern lines, where there is greater
density of tonnage naturally are en-
titled to such an advance-how much
more are the western lines entitled
Ito it?
In contemplating the crisis which
confronts the railroads at the present
time, and which was briefly explained
in last weeks article. it is important
for the reader to realize that the rail-
roads and the public face each other
under radically changed conditions to-
day from those which prevailed a few
years ago. The abuses and scandals
which have been aired before the IN
Iterstate commerce commission during
recent months were perpetrated for
the most part under the old regime Of
la dozen or so years ago. and cas.
never be repeated under the condi-
itions which row prevail. On the one
hand, the interstate commerce COM
mission and the different states. either
through their public utility commits
sions, legislatures or railway COM
missions say what rates the rail-
roads shall charge for service. In adj
dition to this. proposal is now pend
ing in congress to give the government
the right to investigate all new in
terstate securities before they can be
placed upon the market, while similar
authority is already being exercised
within the states by the different pub
lie service commissions. This means
that the last vestige Of control over
their finances will have been taken
away from the railroads and that
henceforth their fate will lie absolute
ily in the hollow OF the peoples hands.
In this connection, we wish to again
remind the reader that the hundreds
of honest railroad officials throughout
the country-men who have managed
their properties without breath Of
scandal or public criticism should not
be condemned because of the misdeeds
of the few. With an aroused public
conscience on the one hand and
scores Of railroad officials throughout
the country sincerely and actively CO.
operating with the different public
authorities on the other, we can safe
~ let bygones be by-gones-wipe the
slate, and. with square deal for the
people, the investor and the railroads
alike, start over again
WHERE RAILROAD RECEIPTS GO.
In order that the reader may realize
what a tremendous factor the rail-
roads are In the every day business
life Of the nation and what they mean
Ito its prosperity, we wish to analyze
briefly what becomes of an average
years railroad income. Just as the
idea has prevailed in the minds OF
many that the railroads are owned by
a few rich men, SO the thought has
also found deep root that they collect
millions of dollars from the public
which go into the Golfers OF handful
of millionaires. and which are perm
anently withdrawn from the thrift
and industry OF the people.
At the close of the fiscal year end
ing June 80, 1913. the records at Wash
ington show that the railroads Of the
United States had collected gross
income from all branches OF their ser.
vice amounting to S3.118,929,318. OF
this sum, 1878 ,s30,5s9 was paid out
for labor-or, to put it in another way,
almost SO cents out OF every dollar
they took in was Immediately paid out
ito the hundreds OF thousands of men
and women whom they employ in the
conduct of their business. For main
ltenance Of way, equipment, depots
ietc., they disbursed 1928, 167, 491-ol
almost another thousand million dol
IIars-and In this vast item the reader
can grasp what railroad prosperity
means to the great steel mills, the
, lumber and coal industry, the big cal
and locomotive building concerns, and
ether sources OF railroad supplies IN
taxes they paid out the enormous sum
OF s129,O52 1922, which helped to main
tain the public schools, public high
WAYS and other revenue expenses Of
every state, county and incorporated
town and city In the country. After
paying their operating expenses. the
Interest on their funded debt and diyi
bends on their stock, which averaged
only 4.2s per cent, the railroads hat
left in 1918 balance OF s3,7o5,54,
with which to make improvements and
to use as a surplus fund for emery
iencfes OF one kind and another. 1r
other words, after the railroads got
through paying for their labor. steel
coal, lumber, interest. dividends and
other necessary expenses the above
s1s3 ,oOO, 600 was all the surplus they
had left for themselves out OF an in
come of more. than three billion dol
lars and this, too, upon propertie:
worth the gigantic sum of twenty bill
lion dollars. Furthermore. the lions
share of this surplus was earned By
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