Jasper County Democrat, Volume 6, Number 19, Rensselaer, Jasper County, 15 August 1903 — POLITICS OF THE DAY [ARTICLE]

POLITICS OF THE DAY

Impending Disaster. There Is something rotten about the financial condition of the railroads, if the various reports of their conditions are to be believed. The Interstate Commerce Commission gives tbe official figures to show that the railroads have Increased their net earnings during the past five years 02 per cent. The annual statement of the Baltimore and Ohio for the fiscal year ending June 30, 1903, shows an Increase of the net earnings over the previous year of $2,798,321. Yet with this unparalleled increase of the B. & 0., which for tbe month of June has a new high record, the market price of the stock has declined during this year 23 per cent. AU the railroad stocks have declined. Chicago and Northwestern, one of the Vanderbilt group, has declined over 00 per cent during the same period, and this stock is looked upon as representing one of the most stable and conservatively managed roads in the United States. The Pennsylvania Railroad stock has declined 40 per cent during the present year, and this stock has been regnrd?d as good as Government bonds, and its earnings -liave increased beyond all previous records. The railroads Included in the Northern Securities Cornpuny, the merger of which the administration has attempted to prevent, have a surplus of over $41,000,000 for the last fiscal year, and yet that stock Is rapidly declining in value. One of the roads leased'by the

merger Is the Chicago, Burlington and Quincy Railroad, and It ha# just borrowed $5,000,000, for which 8 per cent was paid, the loan to run until next March. The Union Pacific has also just borrowed $10,000,000 on short time notes. What posnlble need cau there be for railroads to borrow money and pay big Interest when they have, according to their own report*, a vast surplus. There must be something rotten In the state of Denmark. Are all these railroad reports of vast earnings and their targe surplus tricks of bookkeeping to Induce the lambs to buy their stock In Wall street? There Is uo doubt the railroads are doing more business than ever before and are charging the public exorbitant rates for carrying freight and passengers. So they have undoubtedly earned the Increased money, and their expenses have not kept pace with their earnings. What have they done with the money? Have the managers invested it In Wall street or loaned It to the banks —those with which they are connected? Wall street Is In a bad way and the New York banks are Inextricably mixed up with speculation; they are louded down with vast amounts of undigested securities —the watered stocks t)f the trusts and corporations. The ephemeral prosperity of Wall street and the New York banks has turned to tight times that forbodes disaster. Those of us who are not Interested In Wall street could view the discomfiture of the speculators and the extremity of the banks with composure If It did not affect business elsewhere. but unfortunately It does. Wall street and the New York banks and the railroad magnates are also the trust managers; they control directly or indirectly about all the products that compose the necessaries of life. Their Unlades extend to the uttermost ends of the United States. Disaster In Wall street stops the wheels of commerce; the banks all over the country draw In their horns and decline to make loans. Even the farmer feels the Impending disaster, for he cannot borrow a few dollars to pay the hired man. The country merchant stops buying goods and the wholesale houses reduce stocks and the manufacturer and the Importer do a restricted business. Hard times come pi». Beal estate is unsalable and mortgage* and Interest are impaired. The Republican policy of letting well enough alone when the Impending panic materializes will be viewed her the people as letting bad enough alone and the cry for reform will be sharp and urgent. The protection to the trusts and the millions they have piled up cannot stem the tide of disaster, for

in linrd times high trust prices fall more heavily on the consumer. That sucfi a revulsion Is coming no one with his eyes open can doubt; tlife wise few will prepare for it, the many will suffer for their Hick of observation. Tbe trust and railroad magnate? are at the bottom of the impending evil; they have controlled the policy of the dominant party and have supplied .the funds to keep It in power for their own selfish ends. The Republican leaders are responsible; they have had full swing and must abide by the result of their own work. —Exchange. How Carnegie Catches Suckers. Mr. Andrew Carnegie is a sort of Dr. Jekyl and Mr. Hyde man on tbe tariff Question. In this country he Is a high protectionist, and has probably made over $300,000,000 out of tariff duties on iron and steel; in fact, he probably has more tariff profits in his breeches or banks than any other man. He has shown his appreciation of our tariff generosity by giving nearly SIOO,000,000 of bis protected profits back to us In library buildings, etc. Or, perhaps this amount returned is a “conscience fund - ’ Instead of a “thank you.” strange to say, Mr. Carnegie, who also resides in England, is opposed to protection for that country. He is solemnly warning England against the clangers of protection, and is deprecating the possibility of a three-cornered tariff war between Unl-

ted Suites, Great Britain and Germany. He fears, lie says, that such a fight would prevent the English-speaking race from becoming the “dominant world-power.” Just what Mr. Carnegie has In mind is hard to say. In fact, It is difficult to follow the meanderlngs of a protectionist's ideas, or, rather, assertions, for it is by no means certain that they always speak their minds, if Mr. Carnegie would dUclose all that Is back of his assertions he would say substantially: “I am a protectionist In America because my steel mills are there; that Is, the steel mills which I built, and which, though sold, may return to me any year because of the mortgage 1 hold cn them. Protection In America adds about $75,000,000 a year to the profits of these steel mills, because It enables them to sell at much higher prices In America than In foreign countries. I am a free trader In other countries because I tvant to keep as ? mauy foreign markets as possible open to the products of my steel mills. Of course It would never do for me to state my real reasons, so I must try to fool the people of both countries by talking about the ‘English-speaking race,' ‘the dominant world-power’ and gnch rot. It is remarkable how easy It Is to catch suckers.” Mr. Carnegie is like the late Jay Gould In politics. He said: “I’m a Republican in a Republican State, a Democrat in a Democratic State, and an Erie Railroad man everywhere and always.” Rise and Cheer. To the Impoverished observer ol this era of unparalleled prosperity for the prosperous, the fact will be interesting that the net earnings of the steel trust f</r the six months ending June 30, 1003, were $61,5063,235. TL| Is about 4% per cent (at the rate of 0 per cent per annum) on the total capitalisation of the trust, water and all. That Is truly a prosperous figure. But It Is at the rate of about 30 per cent per n.uiutn on that part of the capitalization which Isn’t water, which is prosperity indeed. The farmers who hive helped to make these profits by paying high prices, and the workingmen who hare done ft by taking low wages, are conltally Invited to rise up and cheer. —Chicago Public. The water of the future city will be pun, the temperature will be equalised, food will be scientifically preserved and prepared, and men win more and more obey the common sense laws of health, avoiding extremes and stimulation.