It is safe to say that $25,000 is a liberal estimate of the average cost per mile of American roads to the stock-and bondholders, and that their capitalization represents $38,000 of water per mile. The total net earnings of the railroads of the country were $341,666,639 in 1890, and $356,227,883 in 1891, upon an actual investment of only about $4,250,000,000. This is a return of about 8-1/2 per cent. and shows the force of Mr. Poor's statement that, if the water were squeezed out of railroad securities, no better-paying investment could be found in the country. We often see references to the fact that no dividends are paid upon a large portion of railroad stocks, but there is no reason why dividends should be paid upon many of them, as they represent no capital whatever that has gone into the road. It is probable that not to exceed ten cents on the dollar upon an average was originally paid for these stocks, and the $80,000,000 distributed annually as dividends upon them does not vary much from fifteen to twenty-five per cent. upon the amount actually invested in them. CHAPTER VII. COMBINATIONS. It is the favorite argument of railroad men, and the writer must confess that he himself formerly believed, that if all legal restraints were removed from railroad business, the laws of trade would regulate it more successfully and more satisfactorily, both to the railroad companies and their patrons, than the wisest statutes could ever regulate it. To give force to their argument, they cite the old Democratic maxim that that State is governed best which is ruled the least. They also assert that it is the province of the State to guarantee to each of its citizens industrial freedom; to permit him to transact any legitimate business according to his best judgment; to buy and to sell where and at what price he pleases; in short, to earn without restriction the reward of his intelligence and his industry. They further contend that under a free government the law of supply and demand should be allowed free sway, and that he who buys or sells transportation should not be hampered in his transactions any more than the grocer and his customer.