Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-02-17


per ton per mile; in 1866, 3.76 cents; in
1867, 3.94 cents; in 1868, 3.49 cents; in
1869, $50 cents; in 1870, 2.92 cents; in
1871, 2,54 cents; in 1872, 2.33 cents; in
1876, 2.10 cents; in 1876, 2.04 cents; in
1877, POS cents; in 1878, 1910 cents; in
1879, 1.72 cents; in 1880, 1.76 cents; in
1881, 1.70 cents, and 1882, / 42-100
cents per ton per mile, re-
duction from 1865 from HOO cents.
The amount Of freight carried by the road
in 1870 for one mile was 181,42S,173 tons
at 82-100 cents per ton. In 1882 943,-
$50, 159 tons we're carried at rate of l
47-100 cents per ton, the reduction being
from natural causes, and though the rate
was so much lower last year than in 1870,
the company did much better.
In 1870 the passenger rate
was five cents per mile, and in 1882 but a
fraction over two cents per mile. while as
shown above there had been a reduction of
about 65 per cent. With such an exhibit
he could not see the justice of the demand
for state control III order to force the COM
pany to adopt lower rates. The fact was,
the company of its own accord had
and was reducing rates as fast as it could
with safety and faster than,the interests of
the stockholders warranted. Your rail
road commissioner admits this great re-
duction, but still he asks for more. The
past year, he said, had been the
MOST PROFITABLE
it had ever enjoyed. It would be conceded
he thought, that railroads should be al
lowed fair interest upon their invest
ments. They also ought to have a reserve
fund to renew the road as it wore out and
fund for repairs. Last year the road
received a total from Minnesota of $4,507,-
34.68. The company has 1,058 miles of
road in the state. The passenger tariff is
2.64c per mile. The gross earnings per
mile of road were S4,431.09.
| The operating expenses of the
road were 1874, or 60 per cent. of the
earnings, on a capitalization of $4,000
per mile, certainly reasonable estimate,
this paid not to exceed per cent. without
laying aside anything for repairs,
etc. We submit that these figures
show that we have not received more
than we were entitled to. In 1881 we spent
| in Minnesota in permanent improvements
$1,154,913, and in 1882, $1,252, 12S, over
and above operating expenses. The mere
cost of the road bed is but trif1e of the
expenses of road. In the one item of
rolling stock the company has spent in the
last three years nearly $10,OO0,OOO
Mr.. Cary then read extracts from the
tariff rates of the Southern Minnesota
road, showing the redaction-made as the
haul was heightened. When we meet
competition points we have to take what we
can get. Take for instance Minneapolis
and st. Paul. You have road to Du-
luth. If we get any business here, we have
to compete with this shorter Duluth
route to the lakes. If compelled
1 to make the same rates
along the whole line, the simple result
would be that we would have to give up
the st. Paul and Minneapolis business
The man at Austin has no such position
or advantage, and if we give the Austin
man fair rate he has no just cause of
complaint.
DISCRIMINATION.
In answer to the complaint of discrim-
nation, Mr.. Cary said none was shown to
individuals of like positions. But dis.
elimination is made for good cause. Take
for instance, man who starts at some
point large manufacturing establish
ment. He says to the company: All my
product will find a market over your
line, as the material employed will be
brought into use. Such men were given
special rates, as by doing it the company
assisted in building up an important ip-
dustry to the benefit of all the people of the
section, and at the same time assisted in
creating business for the road.
In conclusion Mr.. Cary said the older
states had tried such legislation and had
given it up, as not only
unjust to the roads, but iniur-
ious to the best interests of the people.
But aside from the experience of others If
appeared to him an inopportune time for
, such an experiment in Minnesota. The
| state was in very fourishing condition.
owing greatly, as all would acknowledge,
to the rapid growth of the railroad
system of the state, and the special
inducements they were able to hold
out to new settlers. The work of the rail
roads in the Northwest was far from com
pleted. But capital was timid, and the ex-
perience of other states in legislation of
the same character justified the assertion
| that the adoption of the bill under consid-
Grafton would drive capital out of the
state ana cause Qoc1ueQ cnSch TO the
present era of prosperity.
GEN. HAUPT
| of the Northern Pacific road, next ad-
dressed the committee. He said all he
could say was in confirmation of what had
| already been said. There seemed, he said,
vast amount of ignorance upon the sub
ject of railway management. The princi-
pal complaint seemed to be in reference
to discrimination. There must necessarily
be discrimination, but he had failed to
find any unjust discrimination in this sec
ton. No railroad would give different
rates to Smith or Brown under
| like conditions. But special rates
have to be established to meet certain ex-
listing conditions. Iron-clad leglslatson
which would prevent such special rates to
encourage industries, as is done, would do
great injury to thestate. 1t is necessary
for railroads to charge just what they can
get at competitive points. At Bismarck
we meet river competition, and we
have to make our rates &C
cordingly. The only question in connection
with this whole matter, he thought, is