The Grange advance., 1874-08-12

The Railway Problem C0nSidered
AZ Regards Mtnaesota.
lst. Paul Letter Ouly SON. Y. Tribune>]
AFAvoRED STATE.
My impression, derived from CONVEX
sations with gentlemen operating some
OF the leading railroads OF the State, j S
1naI 1nc commissioners nave EST
cases aimed - re11cce :e.eE, E::::. ths:
the reduction has been so slight that
wnlle TIE re,et afforded the individual
farmer will be so small as not to be felt,
It's aggregate effect on the receirtt:c: :. =
the companies will be considerab bic. The
passenger rates are fixed ct 4. 4 l-2,&::33
. cents a mile. On few of the roads
this is reduction of one.half cert 6
mile.
The people Of Minnesota are suffering
less from railroad exactions than these
Of any other grain'producing State.
I his is the conclusion arrived at dur
Ing nv VISIT oercl ast wear. ana NY 1e-
cent observations have confirmed the
Impressions l then received. Wke:tt,
fc.-1 ana uInuer, are the chief articles
which Minnesota exports. The value
Of the frs. :w1, S So much greater in
proportion to their bulk than that of
corn, and the cost of production in this
State so small, that they will bear the
high prices of transportation and still
leave to the farmer and miller good
margin for profit. Great quantities. Of
lumber are RATED down the Mississinr!
river, the cheapest kind Of Iransporta-
tion that has yet been discovered, and
that which goes by rail is manufacture
ed so chcaply at Minneapolis and Still
water that it is furnished to consumers
IN alstant parts of the state v,-n, q.
reasonable prices. The people Of Min
nesota are prosperous in spite of the
great cost of transporting everything
which they have to buy or sell.
THE RAILROADS CARRYING TOO MANY BONDS.
But wnAe say that Minnesota is
growing rich, l do not wish to lose
sight OF the fact that there arc great
ard "rvirg abuses in connection with
the construction and management of
most Of the railroad Of this State. The
LecislatnrA cf lost wir+er. in opao+ipg a
4 EdW WulCn l. COuS1uCA IA1N AAOSo AAONC1 hCC
and equitable of all these passed in the
West since the present excitement be-
gan, attempted to deal with the results
of the abuses to which have referred
instead of striking at the root Of the
evil. There is not in this State, sup
pose, single railroad (which is earning
enough money or more than enough IN to
pay the interest on Its bonds. The
trouble is, not that its rates are too
low. or, in many cases, that the road is
:: extravagantly operated. but that it is
attempting 10 keep anoat too many
bonds. The main line Of the St. Paul
and Faclhc koad,t or Instance, IS, and
some time has been, on the verge OF
bankruptcy. It's managers viii tell you
that to reduce it's rates in the least
will prccipitate the ruin of the COM
pany, and destroy all hope that it will
be able to meet the interest on its
bends. But the people Of Minnesota
ask with a great deal Of force, l think,
ought that road to be expected to earn
the interest on debt averaging at least
$65,OOO mile, while to build the road
cvght not. and prchshlv did not, cost
mare than SIS, 900 mile
The readers of the Tribune are IA
miliar with the system of railroad con-
struction through the unsettled por
tions of these Western States, but viii
venture to illustrate it by an example
which just now comes to my hand
At the time of the panic, last Septem
ber, the Minneapolis and St. Louis rail
road company was about making con
tracts for the construction of its lint
from the Falls of St. Anthony to tht
Iowa line. The terms of the contrac.
were that, for completing the road ane
Placing IL in running condition, includ
ing the iron, side tracks sEd local sta
tions, the company wss to pay $l5.OO(
mile. In order to raise this money
they proposed to bond the road fo1
$4,000 a mile. 1t was supposed thai
the bonds could be sold for about eight.
cents on a dollar, thus giving ne'
profit ts, the cvmPszy cr the cohstruc
tion of $a 900 mile, beside She money
which they expected to collect from tn
towns along the line. The Northern
Pacific company was to take lons
lease Of the; road and pay the Interest
on the bonds.
FRAUDS IN NANAGENENT-WHEkT RIMS.
The abuses of management have beer
almost as great on most Of the leading
railroads Of the West as those >of con
%struction. In Minnesota, the chief com
plant is against the ''wheat rings thai
are yearly formed by the managers Q
the. roads on which the farmers dDpent
te get their wheat to Chicago or Mil
wankee. Under the pretense Of en-
ceurae;cg husjpese and d;verting trade
IRON rival roads to their own, tRest
men send out agents to buy the wheat
that is raised along their respective