The anti-monopolist., 1874-07-16
Control of Rail-
roads.

Legislative Control of Rail-
! roads.
The GYdnse 4aGssancs says:
1--WE have said and again repeat, that we
Ithink Mr. Donnelly, when in the heat Of
passion OR enthusiasm, is too prone 70 run
into untenab.e extremes. For iRtance,
wilen he asserts wits one breath thai rail-
roads are bankrupt, and with the next that
freight rates are rCinonsly high, we have had
numerous farmers ask us how these two
contradictory assertions conld be reconciied.
4 roads cannot pay rnn1nng expenses how
can they afford to lower their rates! We
esuld readily furnish all the volulninous
facts explanatory Of the workings of the
roads, but we ealIn6t undertake to harmonic
Mr.. Donnelly' y'sextremely opposite positions.
Il was the introduction OF such weak and
ieSntradictory arguments, apparent 10 all,
into the Anti Monopoly Address that de-
ssroyed its influence by casting a Suspicion
over The whole document"
The expression Of opinion to which
the Adraace refers can not be found in
TIE Autobiography Address, but in an
interview witt, one Of the reporters OF
the Pioneer.
Bat we will ansaer the question: III
roads cannot pay running expenses.
how can they afford to lower their
rates?''
First, it will be the duty Of the Leg
islature to ascertain whether the re.
turns made by the railroads as to THEN
receipts and expenditures are tr4se OIL
false. Many believe them to DE per-
) fect1y unreliable.
Second, it may be possible .tha- the
corporation is losing money while the
men who run it axe growing rich. The
, stockholders may go without their in
, terest, while wheat rings and transpor
: tation rings are using the road for thei,
: private advantage and piling up for
| tunes. This should be looked into.
We will suppose that one Of our Min
nesota railroad companies, we will say
the Winona & St. Peter Company
? comes before the next Legislature ant
claims as reason why its rates should
: not be reduced, that it is not paying in
{ terest on it's Indebtedness, and it pro
duces these figures, (see rep. Railroad
r Commissioner, 1874, p. 173):
EXPENDITURES.
, Running expenses. ..... .... $50, ,oa5 81
Taxes ...... ...... ...... ..... l2, ,545 81
Interest on bonds and preminm
: on oo.d coupons ...... .-.... 40a, ,614 3:
s. ,046, 1856 Il
l RECEIPTS
s Passenger traffic $l55, ,392 90
E Freight traffic .. :. GIG, ,506 II
Other soarces ..-... =, 49, 1S
c - 7s5,l7s o
Deficit. ....... ........ -. $26l .207 Z:
! Now the Legislature should first en-
euire whether these figures represen
:, facts or falseheods; and secondl,
!, whether the railroad has been honestl,
: administered by its officers, or whethe
: they have stolen its revenues, through
the operation Of inside rings.
:. But suppose the Legislature find
: that the reported earnings and expense
are correct, and that the road has beer
/. honestly administered by its officers
r are they to stop there!
The Republican papers, the Grang
9 .4dramce, and, we are sorry to say, som
!. papers which sympathise, in other re
. spects. with the Autobiography party
q say ues. This they say is your utim.
1 thu,e-the pillars of Hercules of legis
lat;on-and beyond this the people can
/ not go.
), We differ from them. We believ
other considerations enter into the SO
luton of the problem.
First, the construction Of the Winon
& st. Peter railroad has actually cost
according to the report Of engineer
employed by the State Railroad Com
missioner, (see E. 80, report 1874 a
!. follows:
Construction OF 2SS miles in Min
nesota at 81, 900 per mile .... s., ,76o, 90
: Equipment of 2S8 miles in Mime
sofa al =, 400 per mile. -. -. ZOOS, 90
= $6, 763, 20
Now the entire number of acres Q
Ipublic land granted to the Winona
t st. Peter Railroad Company, by Co.l
T gress, for its road in Minnesota, was Use
4 rept. R. r. Com. 1874, p. I'D, 1,5OO. 90
7, acres.
VI Of these the company has sold 70,
I9l5.69 acres, at an average Of S6.47 pc
acre, equal to $5l7 ,050.05.
a And they still have 1,i2O.0 .0S5 acres
/; worth, at the same average price, S6.4
l. per acre, or SO, 86.9l9.85.
i The assets Of the company then are