The Leon reporter. (Leon, Iowa) 1887-1930, 1914-12-31

Commerce Commission to certain
eastern railroads has very much
strengthened the plea of the western
lines for an increase in rates is ad-
mitted upon every hand. If the east
ern lines, where there is a greater
density of tonnage naturally are en-
titled to such an advance-how much
more are the western lines entitled
to 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
, today from those which prevailed a
few years ago. The abuses and
scandals which have been aired be-
fore the Interstate Commerce Com
mission during recent months were
perpetrated for the most part under
the old regime of dozen or so years
ago, and can never be repeated under
the conditions which now prevail.
On the one hand, the Interstate
Commerce Commission and the differ
ent states, either through their Public
Utility Commissions, Legislatures or
Railway Commissions say what rates
the railroads shall charge for serv-
ice. In addition to this, proposal is
now pending in Congress to give the
government the right to investigate
all new interstate securities before
they can be placed upon the market,
while similar authority is already be-
no or "
the different public service commits
sions. This means that the last vestige
of control over their finances will
have been taken away from the rail-
roads and that henceforth their fate
will lie absolutely in the hollow OF
the peoples hands. In this connec-
ton, we wish to again remind the
reader that the hundreds of honest
railroad officials throughout the coun-
try-men who have managed their
properties without breath of scan
dial or public 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 COOP
Grating with the different public au-
thorities on the other, we can safely
let by-gones 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 rea-
lie what tremendous factor the
railroads are in the everyday bust
ness life of the nation and what they
mean to it's 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 permanently withdrawn from the
thrift and industry of the people,
At the close of the fiscal year end
ing June 80, 1913, the records at
Washington show that the railrl ads OF
the United States had collected a
gross income from all branches of
their service amounting to SO, 11S,-
929,31S. OF this sum, $1,373,S3O,-
$50 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 to the
hundreds of thousands of men and
women whom they employ in the con-
duct Of their business. For main
tenance of way, equipment, depots,
ETC., they disbursed 1929, 167, 491-or
almost another thousand million dol
lars-and in this vast item the read
er can grasp what railroad prosperity
means to the great steel mills, the
lumber and coal industry, the big car
and locomotive building concerns, AMI
other sources of railroad supplies. In
taxes they paid out the enormous sum
of $129,052,922, which helped to
maintain the public schools, public
highways and other revenue expenses
of every state, county and Incorporate
ed town and city in the country. At
paying their operating expenses, the
on their funded debt and div
idends on their stock, which averaged
only 4.2S per cent, the railroads had
left in 1913 balance of $1S3,705,-
SAT with which to make improve
ments and to use as surplus fund
for emergencies of one kind and an
other In other words, after the rail-
roads got through paying for their
labor, steel, coal, lumber, interest,
dividends and other necessary ex-
penses the above $183, 100000 was
all the surplus they had left for
themselves out of an income of more
than three billion dollars and t
too, upon properties worth the gigan-
tic sum of twenty billion dollars. Fur
thermore, the lions share of this sur
plus was earned by the stronger roads
while such splendid but weaker lines
as the Wabash didn't earn enough to
pay interest on its receivers certifi-
Gates. Thus it can be seen that on
the basis of the present rates the rial
roads pay back to the public in one i
way and another almost every dollar
they receive for the services they
render to the people.
Burning Candle at Both Ends.
As matter of fact, if every rail-
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