South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-04-29
SHADE or OUR FORMER GENER-
OSITY WITH RAILROADS.


fore the United States supreme court
involving an attempt 10 recover lands
valued at 10000. 900 from the Oregon
& California Railroad CO. and others.
II is perhaps one of the most i'm
pOrtant government suits Instituted in
recent Years, significant just now be-
cause the railroads are having a des-
perate time informing the public as
10 how badly they are being abused,
and, because these western railroads
have been but a trife more supremely
blessed than many railroads in the
east
II was a hahit come years ago, not
only with the federal government but
the states, 10 make railroads happy
with land grants. Free land was more
plentiful then than now. The partic-
ular lands in question. incident 20 the
suit pending, comprise more than two
million acres. are part of the land
grants which we're made with lavish
hand to the transcontinental railroads
in the period after the close Of the
Civil war. If the government wins its
case, these lands Will be thrown open
TO settlement and Development and in
addition the railroad will have TO pay
the government for $4,000 acres
which the government claims have
been disposed of contrary 10 law. To
quote from the government brief:
The defendant company has fla
GRAVITY violated the congressional
acts. and now seems TO think the
government harsh in calling upOn
10 10 suffer the consequences of it's
misconduct. There is not a single
equity i'm the cOmpany's favor; for
every dollar in value given to the
government in the form Of free
transportation. il has received
about So from the proceeds of the
lands for every dollar in taxes
paid it has received more than So
out of the lands For up
wards Of a quarter OF a century
the company has. for its own sell
fish purposes and in contempt of
the laws of the country. withheld
these lands from home seekers,
and thwarted the industrial devel-
opment OF a large section of a
great state and at this moment
demands the right to continue in
its vicious work Of obstruction.
Unless il be reprehensible for the
government 20 enforce the laws
and there are some who think il
is-there is no room for the claim
that its action in demanding a
forfeiture of the lands in question
is inequitable and should he con-
demned The decree of the lower
court is right and we respectfully
ask that it be affirmed.
The governments brief declares that
between 1907 and 1912. at least
10000 individuals made application to
the railroad company for purchase of
plots of these lands for homesteading.
but the railroad claimed that these
applications were not made in good
faith. The United States answered
this argument in this way:
III the railroad company had
put these lands upon the market
for sale according to the terms of
the grants. il would have been
demonstrated within short time
that there were thousands of peO-
pie willing 10 take them and es-
tablish their abOdes thereon. If
that had been done. what is now
wilderness would he a land of
homes G'led with happy and pros
porous citizens.
What the governments suit amounts
TO is "a charge that this railroad COM
pany has monopolized these lands. I'M
lawfully Withholding them from settle
ment and entry to secure for itself the
increment In land value which it has
capitalized and upon which it is now
earning dividends.
The history of the great railroad
grants is probably the rottencst in the
economic and legislative history of the
United States. Vast areas of the pub
lie lands were given outright 10 the
railroads. one L. :. senator declared
in the senate during the last congress
that the L. :. government could have
built every mile of track and furnish
ed the equipment for the transconti-
mental Immigrant railroads and pre-
scented the whole outfit 10 the COM
panies and would still have been bet
ter of had il retained these public
lands.
One impOrtan; result OF winning this
suit (if the government should win IT'D
is the effect it may have on railroad
capitalization, rate-making and wage
disputes. The western railroads in
the present wage arbitration case now
being considered 10y the board OF ar
bitration In Chicago (and Que for
early decision). are claiming that they
cannot afford 20 grant wage increases
20 their employees. The railroad
brotherhoods on the other hand are
claiming that.
The increment i'm land value OF
these government land grants has
been capitalized by the roads and
has prevented "a participation or
employees and the public in the
unearned increment of value
arising from the retention OF this
land and In revenues produced
from strictly rail operations
Furthermore. dividend and inter
est payments on excessive capt.
talizauon issued IN this connec-
ton have 10 be met with revenue
gains produced in part by i'm
creased work and productive ef-
nciency OF locomotive engineers
and frarra4 rnI .afhrr rsnf1wnaI