The great West. [volume], November 22, 1889, Image 1

About The great West. [volume] (St. Paul, Minn.) 1889-18??

Image provided by: Minnesota Historical Society; Saint Paul, MN

                
THE GREAT WEST
U PUBLISHED FRIDAYS AT
788 WABASHA St., St. PAUL,
BY THE
Great West Company.
SI.OO A YEAR IN ADVANCE.
Robinson’s Defense of the Railroads.
In Which he Makes Use of “Advance Sheets” before the Un
favored Few have Opened the Mysterious Volume.
This wonderful volume of 28 pages of reading matter has been laid up
on our table, by the kindness of a friend, with a request to probe it. The
“dedication”—even a pamphlet can have a dedication—is to “The Intelli
gent People of the Northwest.”
We think it will get there —falsehood, fraud, sophistry, casuistry, are
all fast travellers!
It continues: “Who consider Justice and the Public Prosperity as of
more importance than the personal advancement of individual politicians.”
We find no fault with this dedication provided we may add “and plu
tocratic railway sharks.”
Now, on the start our Harry says that his figures are taken from the
“advance sheets” of the 1888 Report of the Interstate Commerce Commis
sion. And he adds,
“This report (1888) has not yet been made public except by the distri
bution of advance sheets of certain portions thereof.”
Why?
Our full examination of this remarkable pamphlet, which is lazarous
with misrepresentation, will not be given until we get those “advance
sheets”—because the previous report of the “Senate Committee,” some
1800 pages in extent, is one vast furnace of figurative fire, roasting the rail
roads.
Harry observes:
“We have hitherto [before this Report of which he has the “advance
sheets”] been grasping in the dark —wandering in a labyrinth with no
clue to lead us to the daylight.”
Now, Mr. Robinson, do you mean by this that the sworn statements
made by the railways to the various state commissions have been largely
fabricacious (!) notable for what they did not contain—or have you ever
known of the remarkable history by which the Erie Canal shed luminosity
on the New York Central? Indeed, we commend your just reflection on
the State Reports, even though they are sworn to before God and
the Notary. But let us assure you that we have never “groped in the
dark,” though roped in by daylight. Not a fact have you discovered in your
pamphlet but is familiar to the Granger who goes to the polls and sends
men like Comstock and Washburn to the U. S. Congress. The facts are not
at fault—it is a trouble in the spinal column of the Goddess of Liberty by
which she has failed to stand erect.
In a foot note Mr. R. explains that he means no insult to the state
commission. He suggests that another person be added to the Commis
sion—to do the work which the three innocuities now representing that
board, with its salaried Secretary and its salaried Clerk, utterly fail to do.
That is about as ridiculous a proposition as can be suggested, and we
naturally conclude that Mr. Robinson has his eye “sot” on the commis
sion.
Before the writer gets into the merits of the matter, he introduces an ad
vertisement of Jim Hill’s daily Pioneer Press—in the shape of one of its
Jew-dicious editorials. In it we find that:
“The people of this state * * * do not propose that the rail
road companies should be wronged by unjust and confiscatory legisla
tion.”
Still, the people do have an idea that every dollar those public carriers
filch from the producers of the state, over and above operating expen
ses, reasonable salaries, and a just interest on investment, is a robbery—and
the road which does, it is a public thief, and the man who connives thereat
is “particeps.”
Then Harry launches forth thus:
“What is the situation then? What are the facts? Is there need of
more anti-railroad legislation, or has there already been too much?”
That last clause gives the cue to the sympathies which actuate this
man. And all through his 28 pages the Plutocrat is seen through the Minion.
What has been the legislation against the railroad ?
This splenetic sciolist will search the state and national statutes in
vain to find any laws passed “against” the railways other than in these
two channels, viz.:
Ist. — That railroads shall not discriminate against some town to the
upbuilding of others. And these laws are “privileges” to the roads —bar-
riers behind which they may protect themselves from the pleadings of great
cities to have their little neighbors wiped out. This barrier, or protection,
was asked for by nearly every railroad man who testified before the U. S.
Senate Committee! Certainly this is not “destructive granger legislation.”
2d.—The control of freight rates. But this power, though asserted and
maintained in the courts, has been exercised in extremely few instances —
and never to any extent. In the state where Robinson constructs his mis
erable casuistry the Commission ignore their legal rights practically, and
permit the roads to charge on level prairie lines with old ten-ton, wheezy
locomotives, three times the rates of roads built through hilly, almost
mountainous regions (Mich. Central for instance). In lowa the rate is put
down a trifle —a mere trifle —being still above the rates of same lines in
other sections.
The roads establish their own rates practically. Mr. Robinson, if he be
not as ignorant as his pamphlet indicates, knows that railroads give
lower rates to transportation companies than any state commission ever
dreamed of asking. And we can suggest that a 70011). press can be carried
from Chicago to St. Paul, 420 or more miles, for one-half what the same road,
and a more cheaply built section, will carry it two hundred and ten miles —
twice the rate and one-half the distance.
Mr. Robinson may be aware that the railroad interests testified under
oath before the U. S. Senate committee, that these local freights had to
bear the burden of the interest on the vast blocks of bonds —of which mat
ter more will be said later.
He quotes the capital of the roads at nine billion of dollars. This is an
average of $58,000 to the mile. Then the writer asks the great question
for which his 28 pages were written, viz.:
“Does this immense capital earn too large revenues, or does it not?”
We will aid Mr. R. in answering this question. In the first place the
nine billions, entire, have no right to earn any income. We have from his
own figures the statement that nine billions means $58,000 to the mile.
Now, we will soon refer to cost of construction more extensively. But
right here let us urge that no man yet has been insane enough to claim
that the railroads and equipments cost over $40,000 to the mile. Mr.
Robinson fights over the question of $20,000 to the mile. Personally, we
claim that SIO,OOO to the mile avei’aging east and west will build every
railroad in the United States, and we defy the production of contracts
which will say to the contrary! But suppose we quadruple our own
statement, and double the estimate in dispute (20,000) —and allow $40,000
to the mile. This is liberal. Then 152,780 miles gives us a capital of only
six billion! Here we have, at an enormous estimate per mile (four times
what any contracts can show, and if the western roads be averaged
with the eastern, twice the amount laid down by commissions and in
dispute by this writer) a direct and unequivocal bulge of six billions into
nine billions.
Now on the nine billions Mr. Robinson figures out an interest on total
debt of 4% per cent (4.55) or 2.18 per cent on the entire nine billions ! This
2.18 per cent on nine billions is a trifle over three per cent on six billidns !
and three per cent is the rate at which people take government bonds —in
fact they stand in row’s all night to get a chance at them in the morning.
but this is only the face of the matter !
There’s a wonderful fact back of this facial expression! These bonds
and this stock represent but a slight investment!!
How slight?
In the case of the “stock” it represents on most railroads not a solitary
dollar!
In case of bonds, we request the reader to get a daily paper and look
over the bond quotations of the bust of them. Out of over nearly 2000
lines of road there are only about 75 quotable on Stock Exchange; and in
Rhodes’ Journal of Banking you will find a fairly complete list of the
bonds. Strike an average, and you will find that you can purchase the
entire
THREE BILLION, FIVE HUNDRED MILLIONS OF BONDS,
which are dra wing interest at the rate of over 4% percent according to
Robinson, for the suggestive sum of
‘ TWO AND ONE-HALF BILLIONS!
The average income of the roads, on market value is over six per
cent including three million dollars of stock which never cost the owner
five cents on the dollar!
There is no possible way for Mr. Robinson to squirm out of these facts.
There it is. The irrevocable edict of the Stock Exchange puts its dial finger
on these properties every day. Now’ is your time Mr. Robinson—buy, buy
and be happy.
But as Mr. Robinson says this is the great question, we propose to go
still further. It is true that two billion and a half of the bonds and stocks
area steal—and a diabolical steal too. It is true that the steal and the
actual investment get an income of from 2.18 percent to 4% per cent a year.
It is true tliat you can buy up the properties for two and one-half" bil
lions — less than two-thirds the sophisticated cost. Now w’e say still
further—that all theoretical consideration of income should be based on
MARKET VALUES.
If Harry Robinson acts like a fool, and puts twenty thousand dollars
in a tenement house ten miles out of St. Paul, he will receive rent-in-
yiwn Historical
Society 1-
The Great West
Representing the Financial and Political Interests of the Fanners of the Northwest.
ST. PAUL, MINN., FRIDAY, NOV. 22, 1889,
The following sentiment was uttered by this
paper recently. Bre’r Dnnn, of Princeton Union,
and Sheets, of Todd County Argus, call ns a
demagogue for its utterance. We propose now
to keep it where It can be seen for a few weeks:
No farmer should ever vote, in primary or at
the polls, for a middle man, a wheat buyer, or
even a railroad sympathiser, for the legislature.
We don’t see how you can do it.
We have on article on “Silver Currency” from
Friend Ball, which we wiU publish soon.
Thirty-nine sheriff sales in one
week! That’s the trans-Mississippi
prosperity evolved by the railroads
in this “wonderful west!” Get out!
1
A letter from Litchfield says Edi
tor Birch, of Willmar, is trying to
down the Alliance because it downed
him last election.
THE RAILROAD BONUS.
Farmers, will you aid us in getting at the amount paid
to railroads in the shape of Bonuses? The roads have
declined to publish them in their sworn reports!
Write us of your County, of your Township, of your vil
lage or city—or of any other County, Township or City in
the State. Will the Alliances please take up this matter offi
cially—at earliest possible .moment.
Let each one write personally, too; several reports from
same section will be all the better.
I “I’ve Read it to the Comers!” r
p £< Tlie following comes in a glorious letter clear from Da- 1|
| “The article is so long that lam afraid too many wont gl
S read it. I have read it over and over. I’ve read it to the S|
m corners. Pat Meegan, at the blacksmith shop, and Mr.
S Mason, who stood by, said it was good enough to keep Bg
PM butter from spoiling. I say so too —and when I read it to K
Ij one of our farmers he said he’d never lived in Minnesota, H|
ijjfi hut his brother did, and he’d give five dollars to see it put »
O in big type and nailed to the bridge post. * * * * * ” Ej
m We cant ‘ ‘nail it to the bridge post, ’ ’ but we can republish
m the part of the article to which he refers. It was a part of R
|jj our criticism of the St. Paul Dispatch, The Dispatch Hi
m a granger statesman appeared on the scene and ad
m P e( t to the turmoil and folly of fhe situation by undertak- jw
M run i r ? ada his own way 'and for his own purposes, rofl
jS to the exclusion of and at the cost of their owners.” Rj
>4 more brainless bray of assininity was never published. K
BThe granger did appear on the scene. He came when he p
saw every factory, wagon shop, tannery, cooper shop, jj|
P commerical mill, ashery, boot and shoe factory, foundry, ill
yg etc., etc., driven from the villages by shameless discrimina- •?
I tions. He came when he could not ship a bushel of grain |
where he wished. He came when a railroad actually refus- I
aed transfer cars. He came when no man could sell a I
bushel of wheat except to a corporate elevator which pro- 1
p nounced the price and compelled a sale. He came when he 1
was paying freight three times larger than required to pav »
p cost of transportation and interest on cost of road. He ffi
I came when the infamous Millers’ Association sat on the
|j corpse of agriculture and demanded the shroud! Came P
S when the farmer was dickering for w ooden shoes! When W
P he came, these banded cutthroats leaped upon him. They ||
1 ade S^ 11 dnmk - . The J bribed him. They laughed at H
5 him. They took him to houses of prostitution and dis- tk
M graced him—then put on the screws and bartered his hon- |
1 or > an( i made him an adept in political treachery. Then V
yk tb e Daily Press, often miserable tools of a miserable lot §.
g of lavender-breeched old rascals, came up to the help of 1
| the mighty against the weak. They patted the Cross-field I
lawyers on the back and relegated the honest men to the %
JR depths where “barnacles” and other w orms fester and feed &
| in the darkness! That’s the how of it, and the Dispatch 1
p knows it all—and more too. jjjjjj
Non-partisan.
The “non-partisan” cry has gone
forth into the land, on broad wings,
and it will not rest again. This is the
edict: “Defeat every party, at every
succeeding election, that refuses to
come up to the high moral standard
of redressing human wrongs.”
From this time on we will have no
party ties—or party names. Men
are wanted. And we know men by
their adherence to principles. If they
do not stick to justice and execute it
then they are not “men!”.
Never again will party get a grip
on us which is stronger than love of
country. Let it be democrat, repub
lican, prohibition, labor party, green
back, woman suffrage, anything for
a name, if it puts up good men and
sound principles—and stands by its
pledges.
It is better to deny all party names
until parties come to their senses.
“Are you a republican?” “No, sir
I am a laboring man.”
“Are you a democrat?” “No sir, I
am a farmer!”
“What, haven’t you a party?”
“No sir, I have a country.”
-A friend from Dawson writes,
“The Great West is doing good
work, and takes well in this county.
I wish you unbounded success.”
Patriotism against Party.
Is it true that you will stick to a
party when it is corrupt? Is it true
that you will keep up a party ma
chine because “it is as good as any
Other!” Is it true that you put fidel
ity to party above fidelity to your
country ? Is it true that your love
of a rotten old “party harvester” is
stronger than your patriotism? Is
it true that you* would rather stand
by the rich plutocrats who steal
your country’s prosperity than
stand bv your neighbor in distress?
Is it true? If it is then why shall we
not describe your “politics” as una
dulterated treason ? Why not?
The railroads of Minnesota have
cost less than SIO,OOO to the mile.
The farmers pay $40,000 to get
them built, pay interest on the debt,
and then don’t own the roads!
THE GREAT WEST
Princeton Union
Gen. James H. Baker was one of
Gov. Merriam’s most eloquent sup
porters in the last campaign. But
the silver-tongued orator has soured
on his excellency. Gov. Merriam
cannot afford to lose the support of
many such men as Gen. Baker.
You will find Gen. Baker on the
Alliance stump. The stump has
sprouted with a million sprouts—and
some of the sprouts have dropped
the “r” out. We want more of those
‘sprouts.”
Any party that asks for your sup
port when it is in league with vicious
principles or vicious combinations,
is rebellious to the republic, and is
in truth a traitorous organization.
The anarchist is not more guilty—
but possesses vastly more courage.
Once more let it be said, and said
with emphasis, Mr. Donnelly, nor
any other than the one published, is
editing this paper. Mr. D. aids us
in Alliance news and items, as be
comes the State Lecturer, and all
the work he does he does well. The
editor of the journal feels flattered
to have it inferred that the scholar,
and the orator, and broad humani
tarian, Ignatius Donnelly, is the
man at the helm. It is the best of
praise, but it is unearned.
HISTORICAL
come proportionate to his folly inversely—the greater the folly the less
the rent. We ask any
SAXE MAX
If it is right that he and we should be taxed to give such young and as
piring idiot an income better than equal|to government bond-interest—on
an old shell inhabited by bats, rats and cats on the bank of the raging
St. Croix?
Does this “stand to reason?”
It does not.
Railroad properties are built on borrowed money. Whether the bor
rowed money comes from New York or Liverpool matters but little. The
amount borrowed is always from twice to thrice the amount used in
building. The farmerpays it all, and interest while being paid. And as it
is loaned by the eastern capitalist on the strength of the credit of the
farmers whose freights are to repay it, it is practically a loan from the
farmers,themselves. If this is so, these farmers allow themselves to be
mortgaged for millions—they never see the money, nor handle it, nor is
one-half of it ever invested in the roads—but they pay interest on it ALL
the time, and finally pay the principal itself.
Robinson states that 2% billion dollars worth of railways was “ab
solutely unproductive.” This is in those “advance sheets.” Well, we are
disposed to say that in the way Robinson puts it, the statement is a false
hood. There is not an unproductive railroad in the United States. Not
one. big or little. As to whether there are roads which pay enormous
salaries, interest on vast blocks of watered bonds and bogus stock—is an
other question.
THE PRODUCTIVENESS OF “NOTHINGNESS.”
“In 1886, 58.12 per cent of the capital stock was non-productive.”
If railroads are built by money borrowed on bonds, and the bonds rep
resent more than the real investment, what right to income does the
stock have?
None whatever —and the 42 per cent of stock which draws income
filches that much out of the public purse. Stock has no rights unless it
represents an interest in the expense.
“And 10.88 per cent of the bonds are unproductive.”
That is a scorcher!! *
Here we have stated, by the Senate Committee Report, that nearly 40
per cent of the bonds of the country were bogus—and yet less than 11 per
cent of the entire 3% billion is unproductive! Crcesus was a poor man!
Robinson sententiously asks:
“In the first place, is 3.40 [say 3%] per cent a reasonable return on an
investment of thousands of millions of dollars?”
We will answer:
1. —lt is larger than any “borrower” in the world “receives.” Or, to
put it easily, it is more than any one else could get on a loan to that
amount.
2. —When Robinson uses the word “investment” he knows he is mean
ing a printed “mortgage” (bond) on which little money was ever applied as
principal. He knows that one-half of the bonded interest is “-water.” If he
don’t know it he is a fool. We don’t think he is. We measure him a knave
—knaves are usually for sale.
MINNESOTA IS NUMBER TWENTY-SEVEN.
Mr. Poor shows that Minnesota stands 27th on the list of states ar
ranged with regard to the productiveness of their roads per mile! We are
glad he gave us this table —for if the roads of Minnesota grade low—and
yet are so wonderfully profitable as to make 20-millionaires of coal
clerks in a few years, wbat princely incomes other roads must have! There
is not a road in Minnesota not paying 22 per cent on investment—think
then, of roads which pay their interest regularly on a capitalization of
$lll,OOO to the mile, in the eastern states!
27th IN VISIBLE PROFITS AND FIRBT IN INVISIBLE.
Did it ever occur to this poor man that the railroad always provided
stocks or bonds to absorb any surplus income? Yes, my son, they dd-
And this surplus eater, the bond, becomes capitalization, and “invests
ment,” and “expense.” Weigh that matter well, my little child* and then
come and sit upon our knee and we’ll give you some more sage counsel,
Mr. Robinson puts on the jacket of the court fool though When h© per*
petrates the following:
“As a matter of fact the lines of the Chi. & Northw. Fv in +.
were absolutely unproductive!” n Minnesot a
We cnar«C terize fIU? statement R falsehood so fool-hardy that it
must require monumental brass to perpeirj?*® He must take his readers
for idiots, On these lines there has been a pT°St 90 cost of roads be
yond the rights of any legitimate business. “The Winona & St. Peter
showed an actual deficit (short of paying operating expenses and fixed
charges) of $450,000.” We quote this for the purpose of getting those two
words “fixed charges.” There’s the spike on which Robinson stubs his
toe. “Fixed charges” means mortgages intended to eat up and absorb
every dollar of income. The Winona & St. Peter pays over twelve per cent
on actual cost after deducting operating expenses—and we might add
eight per cent more with safety. If the Commission would give us the facts
as to trams run, men employed, etc., we could stab these infernal lies with
the truth, and fling the carrion into the faces of such miserable minions as
Robinson.
Minnesota roads earned a gross income of $6,570 to the mile (on their
own returns, and if they will lie to cheat and defraud each other in “pool
ing” why will they not use us so)—and the cost of the Minnesota railroad
is less than SIO,OOO to tl«e mile. The cost of operating a road is about one
thousand dollars a mile a year. Hence, the debt expenses of the Minneso
ta roads amounts to over $5,000 a mile every year—according to Robinson'
We quote on expenses
“The lav public has no idea of the multiplicity of considerations which
enter into the making of a rate. It is not uncommon to see in print cal
culations by non-experts of the profit of a certain charge made for a cer
tain haul. The popular method of conducting such a calculation is to es
timate the capacity of a loaded train of cars, and find out what that would
come to at so much a ton per mile for the distance hauled. Against this
is balanced the cost of fuel and train hands’ wages. The balance between
the sum of these items and the revenue from the loaded train is set dow n
as profit. A very little thought w ould suggest that the revenue from
transportation forms the entire income of a railroad company; and that
from it all the expenses of conducting the company’s business have to be
paid. These expenses include, not merely fuel and train hands’ wages but
all cost of maintaining the road, with its thousands ot track hands and
station agents; all the expenses of the general offices; all the expenses of
maintaining equipment and of building and operating its shops; all ex
penditure in the machinery of advertising for and soliciting business.”
Now' let us see. The Manitoba has about 1250 miles in Minnesota. An
expense of SI,OOO to the mile would yield $1,250,000 a year for running this
extra-visible expense. The gross income of Minnesota roads is given at
$6,570 per mile. SI,OOO pays operating expenses visible. SI,OOO ($1,200,000
for the Minnesota portion) ought to pay the invisible. We put this so’be
cause it does pay them twice over! Still there are $4,500 to the mile for
bonds, bogusness and boodle.
[Since putting this in type we have obtained the Manitoba figures. 'The “general exuense*’ ne
count amounts to the enormous sum of *173 to the mile! Including the keeping un of roads and
maintenance of cars, it amounts to *740 to the mile! Was not our estimate of *I,OOO a liberal one?]
Mr. Robinson says: “The gross tonnage of a road can be doubled
with an addition of perhaps 15 per cent to gross [operating] expenses.”
He is certainly ingenious in looking up new avenues for fraud. This is
one ot them. When a road does not do enough business to run one train
of say ten cars (local and through averaged) each way each day, thev cut
off one train, and run the other, up one day and down the next. Every
train they run costs precisely the same, with a possible difference of
perhaps one clerk at $8 a week at one terminus. These alternate roads
cut down expenses, even to having no passenger trains and having migra
tory station agents, The expenses which are “static,” that is, remain un
changed by changes in amount of traffic, are very small—the smallest con
ceivable. For instance, a road 78 miles in length employs ten station
agents at $lO a w’eek. But that road on one mixed train a day, the poorest
“branch” imaginable, invoices a business of $2,200 a week! As far as trains
go, and “mileage” on leased cars go, the cost of operating is varied but a
trifle, train for train.
But to put the crucial test to this matter, one of these branch
roads w hich runs one mixed train a day, does a net profit of over $1,500 a
w'eek, and yet it freights a distance of 163 miles for the same figure as its
competitor—which freights 120 miles. Passenger service ditto.
Mr. Robinson says the freight rates have been reduced in Minnesota in
fifteen years from three cents (ton-mile) to 1.204 cents! Fifteen years is a
good while—a long period. But nevertheless the statement is false. This
is almost as much as to call
MR. ROBINSON A LIAR.
But as that would be severe, we retract, and say that he prevaricates.
The 1.204 cents per ton-mile comes from averaging through freights with
local freights. Now- the grangers of Minnesota are not fighting the battle
of the Winnepeggyans, nor the San Franciscans, via Seattle and Alaska
(in competition w ith the Southern Pacific to Los Angles or City of Mex
ico). We are fighting for our local rates. Our local rates average from 3
cents to 17cents per ton-mile. Not one mill drop hah been made in local
rates in fifteen years except the schedules forced by the Inter-state Com
merce Law! Is this true Robby—or is it the figment of treacherous freight
schedules hanging in the depots!
We regret the necessity of closing our remarks on this hireling’s sup
port of his master’s infamy, because it is an easy task to string it out
But further remarks must be postponed a week or two. By that time we
may secure some “advance sheets” ourselves!
This Republic was tounded
upon principles which involved
the Dignity of Labor. To des
troy the power oi Labor is to
construct Caste. A Caste cannot
co-exist with a Republic.
but they did earn something
THE AWFUL INVISIBLE,
VOL. I, NO. 6.