The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1871-05-05

|
Its coal tonnage for that year-a year
of strikes-was 4,l50,Sl9 tons. The cost
of operating the road was $2,3i6, ,M1 10,
or $1,000, 1887 more than the cost Of
operating the entire road!
The average cost per ton per mile for
transporting coal was Sc 100 of cent,
while the average charge was 1893 100 of
cent. NoW the charge from Port Car
bon to Philadelphia-dow grade-is
over 6i cents per ton per mile! Accord
ing to the statement of Mr.. GowEN but
1900 tons per week are carried over
the road, or 624, 900 tons per year. AS.
suming the average distance of trans-
portatiOn to be 93 miles, the distance
from Port Carbon 20 Philadelphia, at
present rates the G2i 900 would pay
1862, ,50i more than the cost to transport
$50, $40 tons the same distance at S6.l00
of cent per ton per mile in 1869.
Again, at Sc 100 of cent per ton per
mile the actual cost Of transporting A.
$50, $40 tons of coal was only $31l0,S2J,
while the receipts were $S,3l6, 10 for
the same, showing profit of 50, 226, ,llj,
on that article alone.
But say these impecunious gentlemen,
these eXorbitant rates are justified for
the use OF cars and motive power; the
| four cents per ton per mile being for
| the use of the roadway. Now let 1t be
remembered that for the mere use OF
| the roadway, station agents, toll collec-
| tors, track repairers, and nearly all the
| present machinery of transportation
company would be required. Are these
com mpanies justified in exceeding the
limit for tolls because they furnish cars?
We think not. A four wheel car costs
about $3.50. 1t carries five tons, and can
| easily make 100 trips a year, or carry
600 tons. If $500 per ton then be charg-
ed for car service, each car ,coutd earn
$1,000 per dnnunt or about fire times its cost
| On this subject the testimony of Mr.
| FRECK, II witness called by the defen-
dants, throws some light. He is now
carrying coal over the Schuylkill Haven
O. Mine Hill r.. r., Ia branch operated
by the Philadelphia q Reading II. R.,)
under au old contract, under which ho
pays II cents per ton per mile for the
use of the road, and of a cent per ton
per mile for car service and motive
power, the proportion of the latter to
the former being as one to twelve. This
is the proportion between the two as
agreed upon between the corporation
and operator. Applying the same rule
to the Philadelphia & Reading R.R.,
even at four cents per ton per mile Tor
tolls the present rates of freight from
| Port Carbon to Philadelphia would be
| Ouiy St'Oo POi tou iho'OeeN "a N'fV' eo
| now charged.
Let us now turn for a moment to the
Delaware, Lackawanna g. Western II.
r., giant corporation which has one
| foot in New Jersey, another in New
York, and with its Briarean arms grasps
| the anthracite fields of the Wyoming
| region. Less than ten years ago its
capital stock was 100000 NoU 1t is
SlS, S,S0S,SjO 1t has not only declared
large dividends annually, but has large
ly increased its capital stock by the
earnings of the road, and, as could
demonstrate, by a system peculiar to
railroads, in short time has s,vindled the
| State out of orer $3.50, 600 IN tares alone!
BY supplemental report made to
the Auditor General in 1866 it appears
that the stock was increa5ed-icdRered
some call it-as follows:
July 20, 1Se3,....."...... $ 5l3, ,O3O.
January 4, lS64,........"..... l,l3l,350.
| April l3, 1864. 300.
| June 6, 1S64.................. 80.
November 3. ls6I............. 3,H4, 100.
1.-THE stock thus issued,' says the
Treasurer of the corporation, with the
exception of $3.50, represents the carvings
for The years 1868 and the preceding gears,
and was distributed pro rata among the
Stockholders" l will not now go into
the details of this subject, but will sim.
ply call the attention of the Committee
20 u few brief facts. By their report in
1860, (Which shows a wonderful facility
fur evading the inquiries made by the
Auditor GeneraD they carried ,502, ,4l4
tons of anthracite coal, or only about
100, 900 more tons than were transported
by the Lackawanna te Bloomsburg II.
X -, II small feeder to this giant monopo.
~. Yet on that given amount their re.
t.,,iniS IpuSt Lnya hppp 81 lg- TX ha-
Cause their general freight receipts were
,2Ol 10, and as there was Il suspension
for the months of June, July and Au.
gust ii gives us the average receipts for
coal alone. Their average charge, then,
from Scranton to the Delaware-a dis.
tance of Gj miles-wa5 less than $l.O0
per ton, whereas now it is $500.
Again, Gentlemen of the Committee,
their declared dividends in 1866 were
20 per cent, and in 1869 they only earned
10 per cent according to their report,
yet in 1866 their receipts were g., ,73S ,49G,
and their payments S7,3l9,354, while in
1863 their receipts were S2,4l7,3 1924, and
their payments only 1882, 223, or $3,-
III, l3l less than in 1866. Another fact.
In 1866 they paid the State in taxes, ac-
cording to the Auditor Generals Re-
port S2O5,l2l chGedS az 1869 they only
paid 1916!
Asa further illustration of this branch
Of tbs subject l viii only call your at.
tention to one other com pany-the
Lackawanna & Bloomsburg-a satellite
of the Delaware, Lackawanna & Wes
tern.
Although its Superintendent was in
profound ignorance as to the length of
the road, the distances from point to
point, the rates of freight charged and
the laws regulating them, who owned
or operated the road, the facts have
been obtained in another manner.
The road from Scranton to Nurthum
berland is so miles in length, and from
Pittston 10 miles. Previous to this late
conspiracy among the carrying compan-
les to raise freights, it cost 81. 90 to car
ry ton of coal from Pittston to Nor
+ thumberland and it aOlo costs $2.75, 1t
, then cost Sl.0O per ton from Shickshinny
a TO Beach Haven, distance of seven
+ miles; IL no,0 costs $500. Remember,
, gentlemen of the Committee, that this
railroad under the law passed last win
ter can only charge az all twenty cents
a per ton for distances under ten miles
: unless the rates under the 18th section
! of the Act of 1919 exceed that sum, Sc
Z that they charge ten times the amount
n permitted under the Act of 1870, and
p nearly as many times more than they
, are allowed under the Act of 1919. Ii
word, they now charge as much fo
seven miles, as they formerly did foi
seventy. To illustrate further. The
distance from Bloomsburg to Rupert is
: two miles; and yet this company
: charges 40 cents per ton transporting
iron that distance; double what thu
:, law of 1870 permits, and so prohibitorS
J that the iron men of Bloomsbury fine
!, 1t cheaper to boat their iron in summer
u and haul it by teams in winter.
. Again, the iron men of Bloomsbur,
? get their limestone over this road IN hei
:, opH cars, from Lime Ridge, distance O
Is six miles, for which they are charge,
Il % cents per ton, when under the Act c
" 1870, the limit is 20 cents. 1t is u
n argument to allege that the cars ma
overrun in weight, because both IN
> company and iron men assume the Ct
n pacity of each car to be five tons, an