164 THE FARMER AS A BUSINESS MAN. 



original or construction companies, that only in a few cases 

 could actual original investment ever be discovered, even by 

 the most laborious investigation, and, if it were possible, the 

 time, labor, and expense of it would be beyond all reason. 

 Besides, the public can not afford to accept the principle. 

 Individuals make losing investments, and must suffer the 

 consequences. Shall raih'oad investments be held so sacred 

 that the public must be taxed forever to pay interest upon the 

 cost of a railroad improvidently or extravagantly built? The 

 original cost is not seriously considered by courts, although, 

 when it can be proven, it has due weight. In some cases, of 

 course, the public would be a large gainer by the adoption of 

 this principle, as, for example, doubtless, in the case of the 

 original Hudson River Railroad in New York. 



Another class wishes income to be allowed upon the cost of 

 reproduction, which can always be computed very closely. The 

 cost of railroad building, like that of other things, is much less 

 than it used to be, and tends constantly to grow less. Every 

 railroad built lessens the cost of constructing a competing rail- 

 road. Shall we make a new estimate of cost of reproduction 

 every year, or every five years, and raise or lower the rates at 

 each valuation; or, having once fixed the value in that way, 

 shall we continue to allow income upon that value forever? 

 And if the latter, in what way does that differ, in principle, 

 from accepting tiie actual original cost, when it can be known? 

 The railroad owners say that in making their investment they 

 took their chance of profit. If business does not follow as 

 they expected, they must lose; on the other hand, if the 

 movement of population favors them, they expect to gain, as 

 others who take similar risks gain by unearned increment. 



Still others say that we must consider not only cost of 

 reproduction, but other conditions, external to the road, as, foi- 

 example, the construction of a parallel line. Such lines have 

 been built in this country, along valuable railroad properties, 

 notoriously with the intent to make a profit only by so reduc- 

 ing the value of the original line as to compel its owners to 

 buy in the new line. Obviously, so long as the comi)etition 

 existed, the question of excessive rates would not be raised, 



