Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-02-22
IT DIDN'T WORK.
TIE MorE FOR 4 STATE R411Ro4D

THE MOTE FOR 4 STATE R4ILRO48D.
Meeting to Consider the Proposal of the
State Purchasing the ST. Paul & Duluth
Railroad---It Is Regarded as An Uncon-
stitutional Proposition.
A meeting of the special Senate committee
appointed under Senator Lienau's resolution
regarding the advisability of the States
purchasing the St. Paul & Duluth railroad.
was held last evening in the Senate chamber,
Senator K. Nelson in the chair. Besides the
committee were present Messrs. James
Smith. Jr., F. r. Delano, VIM. Dawson, L.
M. Metcalf and Others
Mr.. Smith gave statement of the fnan-
cial condition of the railroad in question,
showing that on the original capital of
$8,OOO,OO0 sunk in the enterprise, there had
been loss of S2,OOO,OCO. After giving
further details of the receipts in comparison
with expenditures of the road, he continued
by stating the road had every prospect of an
l. liz
already substantially graded, would open up
an increased traffic from new lumber
region, and could be put in operation this
spring. In addition to this. new and
efficient line of boats would be placed in
operation this summer, plying at least every
day between Duluth and lower lake ports in
connection with the leading trunk lines
EQ0 two + no ohio,
ever get into the hahos
of railroad company with which the st.
Paul & Duluth was in competition, Mr..
Smith believed the purchasing or leasing
corporation would run it just enough to keep
it open, but insufhciently to be depended
upon by the business community. The
speaker also asserted that there never had
been movement among the bond or stock
holders Of the road to sell to any competing
line, and he believed its purchase by the
State would prove a good paying invest
ment.
Mr.. Dawson averred that the St. Paul q
Duluth railroad had virtually created and
built up the wholesale trade of st. Paul.
In reply to a question from Gen. Edgertor,
Mr.. Smith expressed his conviction that a
railroad run by the State would be apt to be
run as political machine rather than as
matter of business.
Senator Lienau said that objection would
be obviated by the State leasing the road.
Mr.. Delano commended that the exclusively
competitive character of the St. Paul and
Duluth railroad had been superseded by the
construction of the Brainerd branch, which,
although ninety-six miles longer than the St.
Paul and Duluth line, would yet step in and
take up the business of the latter even sup
posing it should be gobbled up by any of the
eastern-running compelling lines. He was
willing to concede, however, that the st. Paul
and Duluth road enhanced the price
of wheat some ten cents bushel, which
went into the pockets of the farmers.
! While it might be possible that the road had
cost $4,000, 600, he considered that figure
very high, and believed that $3.50 mile
would now build and equip any road in the
State. He was averse to the policy of the
State buying the road, since it's power as
regulator had comparatively, if not altogeth-
or ceased.
Mr.. Metcalf suggested the State might
remit it's taxes upon the road, which state
ment led to an expression. by various speak
ers, regarding the States inability to do so
Senator Edgerton submitted the follow
ing
| HeSOteld That while we recognize the great
| benefit of the st. Paul and Duluth railroad tc
the industrial and commercial interests of the
State, we are of the opinion that the State has
no authority by the constitution to purchase o,
lease any RAILROAD, and, further, if constitu.
tional we believe it would be very impolitit
! tor the State to engage i'll such enterprises
| further than to encourage the same by pru.
dent grants and friendly legislation.
Mr.. Delano said the road had been unfor.
tunate from the beginning, and pointed tt
to the fact that the North Wisconsin was
pushing its way to Lake Superior, which
would be another line competing against the
main lines TO the east He thought the State
might make direct appropriation to thu
road at 50 much per mile. founded upon the
receipts and proportions, but ques-
toned if the constitutional provist
forbidding grants to private enterprises
would not be an effectual bar to such pro-
eedure.
Senator Pillsbury questioned the constitu-
tlonallty of much of the grasshopper appro-
priation.
Senator Edgerton considered such an ap
| preparation would open the gate for aid t.
every bankrupt line in the State.
Mr.. Delano affirmed that St. Pau
alone derived benefit enough from the
st. Paul and Duluth Railroad to pa,
| ~ ~ SApOAAoSSo3 anu
direct tax for that purpose. He ais,
deemed that, as the Northern Pacific railroad
country developed, the st. Paul and Duluth
traffic would largely increase.
Senator Lienau asked what was to proven
the Chicago, Milwaukee & st. Paul campan,
losing the st. Paul and Duluth line. ane
thereby destroying its beneficial competition
Senator Pillsbury replied that no roat
which was already paying expenses, would
lease its lines. The Brainerd branch of the
Minneapolis d St. Louis road, paying con
Germ, stood in the way of the leasing Of the
st. Paul & Duluth line. The Chicago. Mil
waukee & St. Paul company could not swal
low them all.
The resolution of Senator Edgerton was
then passed unanimously. and the committee
adjourned, after instructing the chairman tt
report accordingly to the Senate.
Is SHE DEAD:
L 4