Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-03-04
uwallace's Farmer

[rWallace's Farmer.1
Last week a. number OF the genera
officers Of the railroads operating N
Iowa, came to Des Moines and called
upon the governor and the committees
in the legislature, and presented theil
formal request for law by the legts'
lature which will increase the passen-
ger rates to and IN cents
mile, and indicated their need for high
er freight rates. In our issues Of Feb
5 and Feb. IL, we discussed some
phases of this demand by tho railroads
We pointed out that an advance OF tbs
Iowa passenger rates to IN cents 9
mile would amount to about H,OOO,0OC
increase which the travelling public
would pay to the railroads each year;
and an advance Of 10 per cent In
freight rates would mean an additional
tax of very nearly 100000. The Inter-
state Commerce Commission, in 1910
said that in considering these matters
it would not do to take the extremely
rich roads nor the extremely poor
roads, but the condition. Vi the iaii
roads as whole should be considered
In the argument which the Iowa rail-
roads have advanced for an increase
in the rates, very little has been said
as to conditions in Iowa. Some fig
ures were quoted, purporting to give
the net earnings in Iowa, but these
figures are purely estimates, and would
not be relied upon by the railroads IN
the trial Of case. They have been
pronounced inaccurate and untrust-
worthy by the Iowa commission. The
railroad argument has dealt with con
ditions as a whole.
AS we have previously indicated, the
railroads, as q matter of common JUS
tice, are entitled to reasonable re-
turn upon the fair value of their prop
erty. But we have no means Of know
ing at the present time what the value
Of the Iowa railroad property Is. Iowa,
nor the railroads, so far as we know,
has never made any valuation. About
twenty other states have made valua-
lions of one or more railroads, and the
interstate commerce commission is
now making a valuation Of all the
roads in the United States, but this
valuation will not be completed for
five or six years. In the meantime
how are we going to determine what
are fair and reasonable rates?
very good idea Of the value Of the
railroad property in the state could be
obtained by an investigation covering
period of about six months, provided
100000 should be appropriated by the
legislature for this purpose. In view
of the fact that the advances asked by
the roads amount to about 100000
a year. how better can we spend $780,
600 than to give it to the commission
and tell the commission to find out
what the Iowa railroad property is
worth?
In their argument for an advance in
rates, the railroads people have made
great deal of the necessity Of main
tanning their property. The impress.
sion has been created that the Ameri-
can railroads have been forced to re-
trench. have been going backward,
have been unable to buy necessary
supplies and materials to keep up their
road beds, etc. This is no doubt true
as regards some of the weaker roads.
and there have been times when the
stronger roads have found economy
necessary for a short time. In this
the railroad business is like every other
business. All industries ind It nee
essary to economize, to stop new ex-
penditures occasionally. But the re-
ports Of the interstate commerce COM
mission show that during the past four
years maintenance allowance Of Ameri-
can railroads as q whole has been
greater than for any other four-year
period in their history. In 1918, the
maintenance allowances were more
than $100,0O0,000 greater than for any
other year in their history. In 1914,
during the year Of depression, their
allowances were 10000
900 greater than even the high water
mark of 1918. This is the true situa-
ton as revealed by the report Of the
railroads themselves to the interstate
commerce commission. and these fig
ures ought to be sufficient answer to
the talk that the railroads have not
been able to earn enough to maintain
their property.
There has been persistent effort to
create the impression that the rail-
roads have been greatly hampered
thru inability to borrow money with
which to carry on their business, that
their credit has suffered, and as con-
sequence they have been obliged to
lay Off men and retrench to an extent
which was Gripping all kinds of bust
ness,
It is quite true that the credit of
some roads has suffered. but this has
not been because Of lack of sufficient
but because Of dissipation of
the property Of the roads thru Wild.
cat management or financing. The New
Haven is case in point, and there
are some illustrations which might be
cited in the west. That the credit Of
managed roads has suffered
more than the credit OF other lines of
big business is utterly untrue. For
example, last July, Mr.. Willard, presi-
dent Of the Baltimore and Ohio. was
on the witness stand, and under cross
examination by Mr.. Thorne, he said
that they sold $35,000.000 note. bear
ing Az per cent interest, at par, pay
ing one-half cent commission, thus
making total Of 5 per cent on q one
year note for $s5, 10000 He was asked
to name any other industry In the
United States that was able to bor-
ing the wheat rows closer together we
may yet get sixty bushels to the aero.
The government warns planters not
to buy seed potatoes from Maine un-
less the sacks are tagged with the
- 1ob ol, ~ tho TYn1foH Eto$o IN