The Grange advance., 1874-11-24

the Sioux City RO0de.The Effect
Of tho Railroad LaW..A Frank
Statement - Earnings and Ex-
penses.-The Matter to be Referred
to the Beard a Directors.
GENERAL MANAGERS OFFICE,
ST.. PAUL & Sioux CITY 4. R. Co.
ST. PAUL, Nov. 81, 1873.
Messrs. L. NJ. Brown and sixty-eight others>
Of Shakepee, L. L. Baxter and eighteen
others Of Chaslka, Holmes, Anderson,
Sundine and twenty-five others of Carver,
S. A. Hooper and forty three others of
Belle Plaine, Chas. Keller and forty-one
others of Henderson:
GENrLEnEK-1 have respectfully to.
acknowledge the receipt of your several.
petitions, addressed to the officers Of
this Company, asking that our passen-.
ger trains Nos. 3 and 4, known as the
''Mankato accommodation,' may be-
continued through the winter:
In reply theretosI beg leave: to sub
init to- you as. candid business, msa and,
to the public, the following statement
Of facts:
For the year ending June 30th, 1874,
the expenses of our passenger trains;
(oot including taxes, insurance OF in
terest) were $1s7, ,eas.s7, being 81 10
per cent. of the operating expenses of
tie road. ' IL
During the same time the earnings of
the Passenger trains (including mali
and express,) were $152,75372,. being
27 per cent. Of the gross earnings Of the
road, the deficit chargeable to the pass
enger trains for the year being $14,884,--
65. -
The passenger train mile has cost
for that time $1.2o 6-10, and has earned
$1.l8 1.10-a loss of IL 1-2 cents per,
train mile. These results were reached.
while the local fare was five cents per:
mile. IL
The passenger accommodation in
cludcs two, exclusively passenger, trains:
each way, daily between St. Paul and
Mankato, and one between Mankatou
and Sioux City. For the public con-
venience mail and express has been;
regularly carried on the Mankato train:
for neither Of which has the company
received any additional compensation
On the 1st Of August the Railroad
Commissioners prescribed 41-2l cents
per mile as the maximum, passenger
fare for this road. o.
This reduction, in view of the in
formation laid before the Commission
ers at the time, was justified, so far as
/ am informed, only upon the theory
that the reduction in fa1e would 50
Emulate travel as to yield the same or"
,reater revenue than at S cents.
The Board Of Directors by resolution
directed the reduced fare 70 be put in
force on the 1st Of September, for the.
purpose of testing the question whether
increased travel would or would not.
follow.
During the five months, April to: Au-
gust, inclusive, in 1874, the passenger
revenue of the Mankato train exceeded.
that for the corresponding months of
1873 by about three per cent, the fare
being the same. During the months
Of September and October, 1874, lat
4 IL cents per mile), the revenue of
the same train was less than for the
corresponding months of 1873 by five
per cent, falling off of the revenue to,
be expected at 5 cents per mile Of eight
per cent, or almost exactly ten per-
cent of that part of the revenue that,
comes from LEGAL ticket sales, which is
about eighty per cent. of the total rev..
enue of that train. <.-...t
This means that the reduction of To-
per cent. on the fare has not increased;
the travel but has depleted the 'reve-
nue., by the amount Of the, reduction.
Now it is an imperative necessity for US
to reduce the expenses or to increase.
the earnings of our passenger trains,
until they at least pay their portion Of
the expenses Of the road.
This necessity is especially apparent
during the four months commencing;
with December, when running expenses
are greater and receipts are less than
:or the remainder Of the year. IL
The suspension. of this train yhicha
brings no additional revenue except
from such passengers as would not be
found on the other, If this were not
running, has seemed to. me under the:
circumstances the proper and necessary
thing to do, and tho preparatory in
structions have been given for its Dis
continuance on the 10Th inst. =
This conclusion. was reacheds with
-eat regret and had the, net, earnings:
rom freight. trains !, been sufficient
to make up the deficit Of the passenger
:rains and pay the interest On the.
funded debt, which t(about $l,500 per
mile Of road) nlstst be paid as we'll as:
operating expenses, the suspension
would not have heen cnnsidered. In