Daily globe., 1879-02-13
REGULATING RAILROADS

The Senate Legislative Railroad Commit
tee Meet with Railroad Men to Discuss
the Matter.
Inc Senate committee on railroads, Hon. G.
u. Gllhllan, Chairman, met in tho Senate
chamber last night to consider the provisions
of Senate bill No. ITO. The same being pro-
posed act to regulate the carrying Of freight
by railroads in the State, introduced Feb. 9th
inst by Senator Fl. B. Wilson.
Besides the committee there were present
Messrs. Drake and Bishop, st. Paul & Sioux
Clty hallway company; Homer A. Sargent,
Northern Pacific; John c. Gault, Chicago, Mil
waukee n st. Paul. Mr.. Myers, Southern Min
nesota; Mr.. Porter, Chicago y Northwestern;
Mr.. Hatch, Minneapolis Il st. Louis; Judge
Palmer, Hon. H. J. Horn, Horace Thompson
and others.
Senator Fl. B. Wilson was called upon for an
expression of his views relative to the provis-
ions of the bill. The Senator claimed to have
no prejudice against railroads. He believed
that the farming community and railroad man
agements were mutually dependent upon each
other. So as this understanding was
brought about the differences now existing be-
tween these two classes would adjust them
selves. What he did oppose in railroads was
tween localities. The Senator then in
stanced that it was fact that
grain in bulk could be shipped from Owatonna
to Milwaukee cheaper than from Medford to
the same place, though Medford was eight
miles nearer Minneapolis. 1t was declared
cheaper to ship to Minneapolis from Medford
and then reship to Milwaukee. Lumber by
the car was charged at the rate of $l2 per car
to Milwaukee from Medford and $S
per car from Owatonna. Other instances
of the same kind were mentioned. This was
the nature of the complaint by the people
against the railroads, and the people looked to
the legislature to devise and pass some remedy.
In reference to the bill, the Senator said he had
not assumed 10 fix any rates; that had been
left to the railroad men; but all he desired was
uniform rates. AS to passenger rates, he knew
of no complaint and had made reference to
1T in his bill The fact was that the people
wanted to see no discrimination as now OBJ
tanned, against any person or locality in favor
of another.
Senator Gilfllan, G. D., confessed that the
committee arrogated to itself no particular
knowledge of railroad matters. For this rea-
son the railroad men representing the vast in
terests of that class had been asked to be pres
ent. He called upon them for an expression of
their views.
President Drake of the st. Paul & Sioux
City road, for the purpose of breaking
the ice. He referred to the matter of unjust
discrimination, alleged, and stated that this
arose from competition, both by competing
railway routes other methods of transporta-
head the intention of the bill might
be reached Approximately. Mr.. Drake
further illustrated this view by stating that
brick from Mankato and Belle Plaine were
transported to this market for the same price,
The railroad thus got the traffic from both
places, if the transportation were not the
same, Mankato couldn't get its brick to market
at all. He further exemplifed the railroad
view by other cases similar in nature to the
above. He also showed that cars were sent
west loaded with certain kinds Of staples, and
frequently came back empty, unless certain
discrimination were made. For instance, wheat
was selling for % cents in Sioux City; the mil
lers OF Minneapolis came to his road and said
they would take such wheat if delivered at a
cost of 81 per bushel. Should the road accept
the proposition, or come back with empty cars
though the rate thus established was not uni
form along the route; for instance from
Worthlngton to st. Paul the usual rate might
be charged and cases had arisen where this bad
been done. Worthington naturally cries out
uni ust discrimination. If the bill as reported
were passed, such arrangements as the above
were forbidden under penalty, and would be
an injury to the railroads. In conclusion Mr.
Drake contended it was a matter of trade
and after all adiusted itself in an equitable
distribution by taking from some and in GER
tain things and restoring it in other freights,
Such arrangements as the above aided the
transportation of west t-bound freight ON his
road to be made cheaper, as the returning cars
otherwise empty, came back loaded.
Mr.. Gault was called on for an explanation
as to discriminating rates between Red Wing
to Milwaukee, and Minneapolis to Milwaukee,
He in substance stated the same as Mr. Drake
and further declared that on the average there
was no difference as between Red Wing and
Minneapolis to Milwaukee. In the winter
they charged fifty cents per barrel from Min
neapohs and sixty cents from Red Wing, and
in the summer they equalized it by making the
rate torty-hve cents from both.
Mr.. Myers spoke to the same purpose.
Mr. Porter, of tho Chicago & Northwestern
road, contended that such bill as proposed
would discriminate against the State in all
importations and expectations The bill
mixed up local traffic with through freights.
MIR. Gault interrupted to further elucidate
the point by saying that rates were fixed SO as
to make it equitable. If rates were forced
down West, they would be unduly raised East,
and the result would be that all rates would be-
advanced in the aggregate.
Mr Porter resumed by saying the bill would
embarrass the workings of the road. These
were controlled by circumstances and class of
trade or freight. This the bill ignores all and
everything Of this nature.
Gen. Bishop, in speaking on the subject.
SAID rates after all to very great degree were
adjusted between the ship er and the road.
Tariffs for the lines could not be fixed. If thev
could, it would be a relief to railroad men,
But the question arose would anybody
have to be so assimilated between points as to
make the grand paying aggregate. On the
subject OF tariffs, Gen. Bishop further said
they were nxed to a large extent by the lines
leading to the markets beyond the State and
the poor option was left the roads in the State
to take what was left on as moderate payinp
basis as could be reasonably expected. He
further declared that no railroad Disseminated
for the sake of discrimination. Such a policy
would be suicidal: Such discrimination as did
rIco1r far L,-4
that alone The penalty feature of the bill
drew from the speaker decided and emphatic
criticism. He claimed that the fines, for
textures, etc., were in no way COM
mensurate with the nature of the
ottense 1t was after all matter
OF business; In conclusion he explained the
nature of the competition with which his road
(St. Paul & Sioux City, had to contend. There
was not a STATEN on the line of over 800 miles
at which the rates could be fixed, where north
and south or by cross roads. direct competition
to Chicago was had. Gen. Bishop said no stat
concerned. He likened the bill to what
happened him when he was captain
in the army. A quartermaster had issued him
case of shoes, 100 pairs, all number mines.
and told him to fit them to his company of 100
men Qaughter). 1t couldn't be done Just so
IN this case. The reduction of rates in this
state was dependent upon reduction elsewhere
out OF the State, on connecting lines. He be-
heved the bill was faulty and unjust, and he
thought the best Interests of the State, not
alone railroad interests, would be best subserved
hy putting the bill entirely out of sight. Gen.
Bishop explained clearly the point raised hv
MIR. Porter on the matter of uniform rates. as
provided for in the Reagan bill, which has
passed the lower House of Congress-. Through
freight from the West to the seaboard was de-
lvered comparatively cheaper than freight
further east. If uniform rates along the whole
route to the seabOard were ost, hlioho1 ,,J
made Imperative the grand aggregate along the
whole line would largely increase the rates of