New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-09-05
THE RAILROAD WAR.
PRACTICAL EFFECTS OF THE POTTER LAW


sENGER AND FREIGHT RECEIPTS OF THE RAIL-
ROADS MOTIVES FOR MISREPRESENTATION -
PROBABILITY THAT THE LAW WILL NOT BE OVER
THROWN.
IFRoM THE SPECIAL CORRESPONDENT OF THE TRIBUNE
MADISON. Wis. Aug. $50 much has been SAID
about the financial disaster which an enforcement OF
the Potter law in this State would bring upon the
railroads that have availed myself OF every opI'or
tuuty that has presented itself to obtain statsucs
bearing upon the subject. The common assertion Oh
the railroad managers and their attorneys Is
that the adoption of the legal rates wouid
reduce the receipts of their companies from 25 to 80
per cent, and the counsel for the Milwaukee and ST.
Paul Company SAID in the State Supreme Court this
week that it would reduce the profits of that road
two-fths OF 30 per cent. The representative of the
Chicago and Northwestern Company went even
further than this, and asserted that to cut down
their rates to those allowed by law would deprive
the Company of all benefit from their property.
TIE DECLINE IN PASSENGER RECEIPTS
find from the report of the operations of the Mil
waukee and st. Paul Company for the year 1873,
that It's average rate for the transportation of pas
sengers was three and forty-one hundredth cents
a mile. ascertain this by dividing the amount
received from passengers by the whole number
of miles one passenger was carried. The rate liked
by law for this road is three cents mile in this
State and four cents in Minnesota. But this law
does not apply TO through passengers SO that its
adoption would work reduction of income from
that source. Passengers are now carried through
from Milwaukee to many places in Iowa and Minnie
sofa for about three cents mile, and the effect of
the Potter law is simply to require the Company TO
take local passengers in this State at the same rates
that it now receives from through passengers. L
cannot ascertain what proportion of this Companys
passenger business is through" or wha. part OF 1T
fs in otb and therefore de-
termine exactly what reduction the Potter rates. If
adopted would effect but if they to be applied
TO all the passenger business done by the road, the
reduction of receipts from this source would be
about IS per cent. As it is, the reduction would be
something less than that.
The average rate per mile for passengers on all of
the lines of the Chicago and Northwestern Com
pany ascertaned III the same manner as above Is
three and one hundred and fifteen thousandtbs cents
This Company has more than 300 miles OF road IN
Minnesota on which, by law. it is allowed to charge
four cents MILE and the Potter law in this State
fixes the rate at three cents mile. Were the legal
rates adopted by this road in both States, and ap
piled to through as well as local business, it is
probable that the loss of income, if there was
any, would be very slight. Under its own
freight tariffs and rates OF fare, this
CompaDy's earnings for the seven months
from May 81, 1878. to Jan. l, 1874 were more than
S1,0OO.OOO greater than during the corresponding
period of the previous year l conclude, there
FORE that far the passenger business OF these
two great roads is concerned the loss of income from
q compliance with the Potter law would be less
than onehalf great it has been asserted to be
by the managers of the companies.
ITS EFFECT on FREIGHT RECEIPTS.
To ascertain the effect of the Potter tariffs on
the freight receipts of the railroads of this State is
much more difficult problem. 1 fnd however, by
dividing the entire freight earnings of the Mil
waukee and st. Paul road of last year on all its
divisions in this State by the number of tons carried
one mile that the average rate was two and thirty
nine hundredths cents per ton per mile
The Potter law allows the Northwestern and
the St. Paul companies to charge for transporting
grain in carloads the first twenty-five miles at the
rate of four and fourffths cents per ton per mile
If it carried 30 miles the rate is Just four cents per
ton per mile If carried 100 miles the rate is two and
fourffhs cents per ton per mile if carried 200 miles
the rate would be two and One-fb cents per ton per
mile and if carried 800 miles the rate would be one
and three-ffths cents per ton per mile. am not
sufficiently familiar with the weight of articles in
cuded in the remaining classes freight on which is
charged by the barrel carload, to ascertain the
rate per ton per mile, but suspect that it will be
found that as in the case of grain, the Potter law
allows rates for all distances under 100 miles greater
than the average rate now charged, while for dis
tances over 100 miles the legal rates will be less than
the present average rates. This remark would also
apply the present any other schedule OF rates
that might be adopted.
The General Freight Agent of the Milwaukee and
ST Paul Company has reported as estimate of his
own that comparing the Potter rates with the
Fall tariffs of 1878 and applying both to the freight
business for that year, the former would produce
S2TlOOO of income less than the latter But the CON-
pany on the 9th of April last adopted lower rates
than had before been charged, and comparing these
last with the Potter rates and applying them to the
business of the year. the difference would be only
S22l,OOO. Surprising these estimates to be correct,
the loss of earnings from freight that the Milwaukee
and St Paul Road would have sustained last year,
had il been operated on the basis of the Potter
tariff would have been less than five per cent. AL
lowing for all contingencies the loss of income from
this source by the enforcement OF the law would be
less than seven per cent.
MOTIVES FOR ExAGGERATToN.
But what reason. it may be asked, can the man.
ayers of these roads have to exaggerate the effect
which the enforcement of the Potter law would
have upon the income of their roads, / reply that
the managers of the two great railway corporations
in this State are contesting Wisconsin not against
the Potter law per Sc, but against the principle
that any State may enact or enforce any law limit
ing the power of those corporations in respect to the
regulation of the rates they may receive for the
transportation of freight and passengers. Wiscon-
sin is the stronghold of the Changers The Potter
law rests On the solid foundation of constitutional
provision which was put into the organic law OF the
State before single of these railroads received
fits charter 1t was one of the conditions on which
corporate privileges granted, and was accepted
by the companies when they accepted their charters
NJ tha uipac