The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1914-06-09

Iowa railroad com mission. states
that the United States government
would have to pay in yearly inter-
est on bonds representing the full
market value OF all the railway Sc
Eourfties, including stocks and bonds.
S419, 075. 210. The difference be-
| tween this latter sum and the $685.
1851 now paid TO private bene-
+! fciaries IS s41i, 659,31o. Mr..
Thorne's figures are based on a gov
eminent rate OF interest Of three
per cent; but using four per cent
basis for railway bonds guaranteed
| by the government, the saving would
be approximately three hundred
million dollars annually.
The saving, regardless of the in
| be vast, nor does all this offered
present saving take into account the
| future saving. Here and now | can
| only indicate these. The -unearned
increment OF land values in city
terminals. country right of way, and
so forth, are piling up hundreds of
| millions Of capital values" that the
railroad rates under private owner
| ship must also return interest upon.
| The other increases" that result
| from the great tractive power Of
| locomotives and the vast increase in
carrying capacity Of freight cars
these benefits now inure to private
parties instead OF 70 the people. as
would be the case if the pubic We're
the owner.
With these increments piled up on
top OF speculations AMI excessive
capitalization, is il any wonder that
the following dialogue concerning
the railways present demand for in
creased rates took place in an inter-
state commerce hearing?
Commissioner Lane: Is there
any reason to believe that these in
creases would stop with the present
increase if it should be allowed?
President Willard, of the Balti-
more & Ohio: Increases the rates?
Commissioner Lane: Increases
the rates; yes. sir.
President Willard: No; l think
not 1 think the tendency of rates
will be to continue upward.
Commissioner Lane: You think
there will have to be a progressive
increase?
President Willard: Yes. sir.
l wonder whether the tremendous
Importance of an increase in freight
rates, with further advances in pros
pect, is generally appreciated. l fear
not. Many regard the proposed in
crease of five per cent. as a very
slight matter: but the cold facts are:
A five per cent increase for the East
ern roads. involving fifty million dol
lars, is but an opening wedge, that
in the end will mean general in
crease for all the railroads in the
country, aggregating one hundred
fifty million dollars. These increas-
ed charges will be paid primarily by
the merchants. and finally, in the
higher cost of food, clothing, shelter,
coal, lumber. and so on. by the pub |
lie. The most prosperous year for
the railways was 1913. Their total
income was the largest. and their
profits would have been the greatest !
in history if they had used the same
portion of their revenue for perma-
nent improvements and maintenance |
that had been expended during pre-
ceeding years. The excessive propo-
ton of railway revenues invested in |
cars, engines, terminals, tracks and
Improvements during 1913 represents
profits, but in the form Of property
instead of cash. There was not the |
slightest justification for the advance
in freight rates demanded by the rail- |
ways and refused by the commission
in 1910 and there is now no iustifi- |
cation for an increase. The facts
submitted by the railway officials
themselves condemn the whole
scheme.
The Public Suspicious
There has been an unreasonable |
increase in the wealth Of the world
and we are enjoying comforts and
Injuries undreamed OF by our ances-
tors, chiefly on account o. useful in
ventions and the advance from the
cruier methods Of transportation TO
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