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About Tillamook headlight. (Tillamook, Or.) 1888-1934 | View Entire Issue (March 23, 1905)
TILLAMOOK HEADLIGHT. MARCH 23. 1905. THE I -fc *■ J I i I i■ < ■ À J j h RAILROADS AND THE PEOPLE Over Capitalization and Stock - Watering.- -By Edward Rosewater, Editor Omaha Bee. ir you are in want of Good Trees, guaranteed true to name, The Thing in a Nutshell. In a nutshell, the 210,000 miles of railroad in the I nited States, stocked and bonded at an average of $63,000 per mile and capitalized on the aggregate for $13,250,000,000, or thereabouts, contains $4,500,000,000 of water, computing the average value of American railroads at $40,000 per mile. On this vast over- capitalization the American people are compelled to pay at least Fruit and Ornamental Trees, Small Fruits, Vines, 4 ¡»er cent, or $1,800,000,000, a year in the shape of freight and Fine Assortment of Rose Bushes. passenger tolls. Send us list of trees wanted and prices will be quoted by return mail. How is the water to be wrung out ? That is one of the pro blems which the future alone can solve. Periodically, or at least This is to certify, that 1 have this 27th day of December. 1904. inspected and once every twenty years, the water wrings itself out, but it is examined the Nursery »lock ot Mr E. P. Smith, of The Eastwood Nursenes, Gres- ham. Oregon, and so far as 1 am able to ascertain, have found it in good market, pumped in again almost by the same process by which it was able condition and clear of anv serious insect pest or disease. Their methods of originally injected, and the process will keep on repeating itself handling and growing stock are first class. ......... . . . " h WILBUR K. NEW ELL, Commissioner First District. for generations, growing tno'e dangerous to our financial system as the years go by, unless the nation and the states shall assume and exercise supervisory power over railroad capitalization. The EASTWOOD NURSERIES, Gresham, Oregon, America’s railway systems now comprise 210,000miles, capital ized, approximately, for $13,200,000,000 nearly equally divided be tween bondsand stocks. An idea of these stupendous figures can be formed by instituting some comparisons. The high water mark of our national debt three years after the close of the civil war was slightiy in excess of $2,844,649,626, less than one-half of the bonded debt of the railroads at this time. The aggregate national debt and the aggregate debt of all state, all the counties, all the school districts and all the cities of the United States will not exceed at this time $2,200,000,000, or one-third of the bonded debt of the railroads and one-sixth of their total capitalization, which is now computed to be equal to one-eighth of the wealth of the whole nation, including the rail Still Flocking into Canada. HAS THE BIG HEAD. roads. It goes without saying that if the bonds and stocks that Seth Bullock’s Opinion ofz New 1 The immigration of Americans into ’ Western Canada, which has now been York. represent the capitalization of the American railways system had been issued dollar for dollar for the money actually expended for N ew Y ork , March 18.—Captain Seth going on steadily for a number of years, the tangible properties of the railroads, the capitalization of rail Bullock, who, with his band of cow j is to continue this year as large as ever, if we are to believe the reports that issue roads would present no problem, either at this time or in the punchers, were here a-coupie of days from Winnipeg. A correspondent of the what he thought seeing the sights, told future. It is a matter of notoriety, however, that the {»resent Toronto News writes from Winnipeg as capitalization of American railways has been enormously inflated. of New York, and the story is not likely follows : to contribute any pleasure to New The excessive valuation affords an excuse for imposition of trans Yorkers, but will be extremely edifying “Hitherto the great bulk of the influx portation tolls that would otherwise have been justifiable and is to those dwellers west of the Alleghan- from the United States has been from also a constant menace to our entire financial fabric, whose basis ies,|who from time to time havejourney- along the international boundary and must always be confidence and credit. ed hither and have come to the same the great central states ; but now settlers are preparing to flock into our west from The peiiodical financial convulsions to which the country has ! couclusion as Bullock. all parts of the republic to the south. been subjected by reason of railroad overcapitalization has Bullock has been in New York before wrought wreck and ruin in ever commercial and industrial center He knows New York as well as though The bulk of the newcomers this year will probably continue to be from the great of America. he lived here. He pays his own way when he is here, and feels entitled to his Cause of Disastrous Panic. opinion of the place, though he never It is a matter of history that the disastrous financial panic ot felt warranted in making any voluntary 1873 was precipitated by the collapse of the Northern Pacific criticisms. But a criticism was demand railroad, financeered by the late Jay Cook. To be sure, other of him yesterday. He leaned back in his elements beside fictitious railroad capitalization and railroad stock chair, thrust his hands far down into his jobbing entered into the crash of 1873, but they were compara trousers’ pockets, turned his cold, gray eyes quizzically on his questioners. tively of secondary importance. Within one year after the crash of 1873 scores of railroads “Do you want to know what I think which had been excessively capitalized were driven into bank of this town ?” he asked in bis quiet, ruptcy and had to be operated by receivers. The disastrous effect chilled-steel way. “Now, mind, I know of railway overcapitalization was even more marked in 1893 than I as welljas you that there are.good people • in New York City. But, taken altogeth it had been twenty years provious. er, you are the most provinical outfit in A striking illustration of the methods pursued in the capitali the whole country. You’ve got so much zation of railroads is presented in an argument by former Comp you think you’ve got it all. You think troller of the United States Treasury Charles G. Dawes before the the Creator stopped work when he filled Nebraska legislative committee in 1891 relative to the extension the Hudson River with water, and all of the Burlington system in Nebraska, then covering a distance the rest of the country out beyond just of 1,493 miles of road, which was constructed and equipped for a happened so. Nothing counts unless it total of $32,518,645 20, for which bonds were issued aggregating is done in New York and by New York $32,183,480.84 and sold for $33,040,388.84, or an average of except to laugh at. “Now, out in our country we k n o w $22,325 per mile. I11 addition to this the company received from New York is a good town. We know land grants and municipal and county bonds $7,670 per mile. we'er all right, too. We think the coast A Tax Upon the Country’s Products. is prettv good grazing, We’er proud of Practically, therefore, the mortgage and subsidy covered the the whole country. But New York is cost of the road, and the stock issued, at an average of $25,000 proud of itself, and thinks the rest of the per mile, represented no investment whatever, but was simply a country in luck to be on the same con capitalization of the railroad franchise. Assuming that the fran tinent. I’m not speaking in harshness chise value of the Burlington in Nebraska, which was converted or bitterness. But sometimes I think into stocks, represented honest investment, the enormity of the you miss a lot of the joy of being Aireri recent conversion of that stock into bonds of the Great Northern cans. and Northern Pacific Railroad company at the rate of $2 in bonds “And another thing. A man from out for $t in stock, must be apparent. These bonds bearing 4 per our way can’t help seeing the way a lot of sheepfaces along these subways and cent interest have become and will continue to be acharge, in other street cars of ¡¡yours crowd the women words, a permanent tax upon the products of the country tribu and stamp on their feet to get ahead of tary to the Burlington system and the Great Northern and North them. Great God A’mighcy ! I came over ern Pacific systems, inasmuch as fixed charges representing the in from Washington yesterday on the Con terest upon the bonded debt constitute the foundation for the gressional limited, and tilings they called tolls charged by railroad for the transportation of freight and men pushed their way by women who passengers. Nobody who has given the American railway problem serious consideration will contend that the capitalization of railroads should include only the original cost of the roads minus the amount of subsidies received by them from the government, the states, counties, townships and cities. That would not be a fair valuation, because the value of every railroad is materially en hanced by the increase in the value of its right-of-way and termi nals, as well as by the bettennent of its equipment and gradual improvement of trackage, roadbeds, bridges, etc., but all these elements of value, in fact, the entire physical property of Amer ican railroads, would scarcely more than equal their bonded debt, which averages about $32,000 [»er mile. The relation which the bonded debt of the railroads bears to the public in general, and the patrons of the railroads in particu lar, can best be understood when it is born in mind that a railroad niorgage covers not only the right-of-way, roadbed, trackage and rolling stock of the road, but in reality constitutes a blanket mortgage upon the products of the country tributary to it, which means a strip of country from ten to twenty miles in width on each side ot its roadway. were there before ’em into the dining- car, and when they were through with dinners, these sainn critters sat there and smoked their cigars and let the women wait. “Now, you don't see doings like that out in our country. If that’s typical of the Eastern gentlemen, then the real American gentlemen are to be found out West. “Let me tell you. I don’t think it is typical. I think I recognize some of these critters. For many years the West has been shipping hogs East to Chicago, and I can’t help thinking I see a lot of thosesame blankety-blank hogs romping around here in New York with two of their legs missing—having passed Chica go and the scalding vats.” Unfortunately, there is ample evidence of the truth of Mr. Bullock’s charge that New York men show no consideration for women. In the struggles to get on and off the subway trains at Forty-second and Fourteenth streets this morning and last evening the wildest disorder pre vailed, and in sume instances out-and. out fist tights, Blood was spilled and clothing torn, Women and voting girls were helpless, Some of the men after they had been thrown tree of the crowd, continued their fighting in the clear spaces of the station platforms. Must be Paid by the Public. In the very nature of things, the * fixed charge,” that is, the interest on the bonded debt of every railroad, must be [»aid by the people who patronize it, willingly or unwilling, and it is for this reason that railroad promotets find no difficulty in securing loans tor the entire cost of the railroad and sometimes in excess of its cost, while owners of other property, whether it consists of farm ing lauds or city lots and buildings, can only secure mortgage loans equal to 30 per cent to 50 per cent of the total value of the pro- pertv mortgaged. According to the latest report of the Interstate Commerce com Dr. Ernest J. Lederle, ex.Health Com- mission 32 | er cent ot the earnings of American railroad repre missioner, pulled Inmselt free of a group sents fixed charges or interest upon the bonded debt, while the of tussling men, struggling to get aboard a down town express, and then watched remainder goes tor operating expenses and dividends. the scene about him. From this source it is also gleaned that the bonds issued by | “Not another citv in the world would American railroads represents from 40 to 61 {»er cent of their stand for such scenes,” he »aid. “There total capitalization, while the stocks represent from 45 to 59’ in the Grand Central Police Station, at per eent of the total capitalization. In dollar and cenW, the the head of the stairs, 30 feet away, was bonds range from $21,855 per mile to $(>2,217 per mile, while the a Captain and two Sergeants and a stocks range from $18,557 per mile to $59,274 per mile. large force of police. Herr grown-up _ I lie increase ot bonded debt for 1904 aggregates $355,000,000. men were mauling women nnd fighting \\ hile all the bonds outstanding have for the last three years each other, cursing, swearing, and with paid interest on their face value at from 1 per cent to 8 per cent, none even to attempt objection. Just a 50 per cent ot the stock representing $3,500,000,000, paid dividends few trained men could have handled the crow d.” in I903 *nd 1904 at the average rate of 5», per cent, while in 1890 only 30,»er cent of the outstanding stock paid dividends, It Saved His Leg which tor 1904 exceeded in the aggregate $$00,000,000, and the P. A. Danforth, of LaGrange. <»a.. ___ _ total amount ot dividends distributed within the last fifteen sutfvred for six months w itli a frightful years, which includes a period of depression, is in excess of running sore on lus leg. but writes $1,800,000,000. The bulk ot this sum, representing as it does timi Bucklens Arnica .Waive wholly ii m tivedays. For I'leers. Wounds more than double the present national debt, was exacted from cured Piles, it s the licet salve tn the world, American patrons ot railroads as dividends for fictitious capi l'uri- guaranteed. Only 25 eta. Sold by Chas 1. Clough, druggist. talisation. i wheat and corn stages, but the east, south and west will contribute a greater share than hitherto, and the proportion bids fair to increase in the future. New settlers will be arriving this season from far-off states, such as the Carolinas and Texas ; but the most prominent new dis trict from which people are beginning to move west is the New England states, which fact has recently moved the gov ernment at Ottawa to appoint special agents at Boston and F’ittsburg. The immigration from the United States has increased from 18.000 in 1900-1 to 45,- 000 in 1903-4, and the indications are that the figures for the present year will I far exceed past records. The best immi- ! gration agents that we have are the , large number of settlers who have j already migrated. The reports that these • people send home to their relatives and • friends are the best possible inducement to bring along more and more newcom ers ; and this is what is daily occurring, until it has become difficult to estimate the proportions of this mighty army of our American cousins which in the next few years will move across the border to this greater America of ours.” H NEW WINTER FABRICS AVI Headquarters for Ladies’ Tailoring, 0 Dress and Walking Suits, Dress Skirts, Instep Skirts, Cloth and Silk Coats, Raglan’s Rain Coats. Exlusively to Measure. H J SARCHET, the Tailor, Tillamook. Come earlv and secure first choice. Satisfaction guaranteed in all cases. 6 Fir and Spruce Lumber. Spruce and Cedar Shingles. Cheese and Butter Boxes a specialty Orders for Lumber promptly attended to. TILLAMOOK LUMBER. COÎDPÆJIY. The Best Hotel THE ALLEN HOUSE, J. P. ALiLtEjM, Proprietor Headquarters for Travelling Men. Special Attention paid to Tourists. A First Class Table. Comfortable Beds and Accommodation A Million Dollar Baby. George Tremble, one of the richest 1 residents of Leadville, Colorado, has re ceived word from his daughter, Mrs. ' Willie Edwards, of San Francisco, that i he is about to become a grandfather, as ; the stork is hovering about the Edwards STEAMERS—SUE H. ELMORE, W. H. HARRISON. home in the Bav City. Upon the birth ONLY LINE—ASTOT1A TO TILLAMOOK, GARIBALDI, of this child it will fall heir to $1.000,000 BAY CITY, HOBSON VILLE. the princely sum offered by Millionaire j Connecting at Astoria with the Oregon Kailroad & Navigation Co. and Treivple to the first babv born to his also the Astoria & Columbia River R. R. fol San Francisco, Portland children. The Colorado mining magnate ! and all points east. For freight and passenger rates apply to is opposed to race suicide, and is an ar-1 SAMUEL ELMORE & CO. General Agents, ASTORIA. OR dent admirer of President Roosevelt s B. C. LAMB, Agent. Tillamook Oregon. often-Announced policy of large families. 1 Airents I**' R. R. Co , Portland. B & G R R Co Porl)and Several years ago he stated that first- born would be forthwith given a check Sue H. Elmore carries Wells Fargo Co.’s Expres for $1,000,000, and since that time there has been considerable speculation as to which of his children would be first to claim the prize. When Willie Edwards married Tremble’s daughter, some thou ght that the prize would be paid to the Ed wards couple in trust for their babv, PROPRIETOR but later a serious misunderstanding oc I curred between the two while thev were 4 living at Colorado Springs, nnd it looked as though the pair would forfeit the prize. The couple patched up their dif. ficulties, and although it was thought ? Boiler Work, Logger’s Work and Heavy Forging. that owing to the disagreements ,be- Fine .Machine Work a Specialty. tween the two the wife’s father would withdraw his offer, he maintained that 4 he will carry out his agreement. Babv Edwards will thus enter the world with a million dollar bank account, and will have the unique experience of being so gladly welcomed that it will lie a million I Centrally Doeated. Rates, $1 Per Day dollar infant, that enormous sum being paid for this lucky balic. Pacific Navigation Co. 4 4 A. K. CASE, Tillamook Iron Woks 4 General Machinists & Blacksmiths. 4 4 OREGON. TILLAMOOK, LARSEN HOUSE, Tragedy Averted. " Just ill the nick of time our little bor was saved ' writer Mr* \V Watkins of Pleasant City. Ohio. "Pheumonia had plat e.I sad hiiv>a- with him and a terri ble cyiiKh set in lieaides. Doctors treat ed him. but lie grew worse every day. At length we tried Dr King's New Dis covery for Consumption. and our darl. mg w is saved He's now sound, and well Evervlailv ought to know, it's the only sure cure for Coughs, Colds and all Lung diseases Guaranteed hr Chas. I. Clough, Druggist. Price 50c. and $1.00. Trial bottles free. Then- i* more Catarrh in this section of the country than all other diseases put together, ami until the la*t few years was supposed to be incurable For a great many rears doctors monomiced it a local disease and prescribed local remedies, and by cousiantly failing to cute with local treatment, piono.im .st it incurable Science has proven catarrh to In* a < onstrtu- tlonaldiMaae and th. r. fore require» constitu tional treatment. Halls Catarrh tn re manu factured by E J. Cheney M o Toledo. Ohio is the only constitutio al cure on the market It ts taken internally in doses from io drops to a teaspooHfut It acts directly onthehluod and mucous surfaces of the system Thev otter one hundred dollars for an\ <-ase it f..t:'s to cure > nd for circulars amt testimonials Add'-'* F J CHENEY 4 CU Toledo O >o>'1 b\ Ptt:ggi»ts *5c S>U s Family Fills are the best. A young couple at Newport find it im possible to live on an income of $360,000 a year. The fact that poverty is relative has just been illustrated by the beef trust M. H. LiARSEN, Proprietor. TILLAMOOK, OREGON The Best Hotel in the city. No Chinese Employed. AT COST ! THE RED SHOE HOUSE IS Closing Out its Entire Stock of BOOTS AND SHOES AT COST. «W.7 (roods arc ail First Class and up to date. N '■ health compels me to make a change. This is no bumbug. Repairing Neatly Done. P. F. BROWNE, SalHBman.
