ELEVENTH ANNUAL YEAR BOOK — PART IV. 167 



year additional railroad tax upon the public in this country, a 

 sum that exceeds the entire customs revenue, the entire tariff of 

 the United States government. This tariff that we have been 

 haggling over for generation after generation, and that most people 

 today think is the greatest issue before the American people — not 

 the advance or reduction of that tariff, but the whole thing to- 

 gether, is less than this one little advance asked for by the rail- 

 roads of the United States. It is simply stupendous. As I said 

 last night, gentlemen, since the Dred Scott case there has been 

 no matter pending before any tribunal in the United States equal 

 to the issues at stake in this case at the present time. It is not 

 just in dollars and cents, either. I will tell you another phase of 

 it: 



If a general raise in rates over the United States is allowed 

 (and Mr. Ripley says this is the entering wedge; this is to be the 

 test case; and the Interstate Commerce Commission is devoting 

 months and months of time to it, as well as a few others of us), 

 what will it mean to Iowa ? Iowa has been held up as a scarecrow 

 to these surrounding states because we wanted to get our inter- 

 state rates readjusted. "We have a readjustment on the livestock 

 rates, and (bless God for you fellows' kindly help) we are going 

 to try to get some other rates readjusted. How are we going to 

 do it if the railroads persuade the Interstate Commerce Commis- 

 sion that they are entitled to more revenue? "What condition will 

 your great state be in when it comes up and asks for a substantial 

 reduction on any other class of rates? The railroads will imme- 

 diately say : That will mean a reduction from our revenues amount- 

 ing to half a million or a million dollars a year, and that will be 

 a substantial reduction. If that reduction is made, the railroads 

 will say: Where are you going to raise rates elsewhere to make 

 up for it? Can the commission dare to raise rates to Chicago and 

 St. Louis and Kansas City? Imagine the tremendous pressue that 

 will be brought to bear upon them ! No ; if the railroads establish 

 the fact that they are entitled to increased revenue and greater 

 earnings, mark my word, it will be almost an impossibility to get 

 any material, substantial reduction for years to come in the state 

 of Iowa. 



The question of how much surplus earnings these companies are 

 allowed to put back into betterments and improvements is a matter 

 of public policy. They are entitled to some; how much are they 

 entitled to ? Public sentiment is being created that in turn will be 



