St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-03-06

reduction of rates in Colorado and Utah,
arising from the competition of rural lines,
and the failure to agree upon rates, the gross
earnings of the company for the past year
would have been largely in excess of the
year previous. The latter of these causes is
now being remedied, and with the mainte-
nance Of the present rates, and a continued
increase of traffic, the gross and net earn
ings for 1884 should show very favorable
when compared with the past year.
The results OF the years business, on the
transportation OF freight, indicate that rapid
progress is being made in the settlement of
the country, and the development Of the
mining and industrial interests along the
lines of the company's railways. The oper-
ating expenses, including taxes, in 1888,
was SO, 354, $40 As compared with the
year previous, it was saving of 1868, 43S in
cost of maintenance of way and cars, and
the increased cost of conducting transporta-
ton was 1858, 731. The total saving in the
operating expenses was S372, sos. To meet
completion, forced on the company by the
injudicious action of rival lines, it
became necessary, besides reducing the
rates to run an additional number of
trains. In consequence thereof, mainly,
but partly owing TO the larger traffic loeomo-
tive mileage Increased from 9,611,6S3 to
II, AS, T64 in 1888. an increase of 2955 per
cent. The train mileage cost S1.O9 40 a
mile or S1.6-10 cents a mile less than during
1882, which is favorable result, consider
ing the increased speed of through passenger
train service during the year The total
amount of coal mined by the company was
1871 119 tons, an increase of IA $40 per cent.
over the output of the preceding years.
The average cost loaded into
cars was S1.4055 cents ton
being SO cents less than in 1882. Amount
of coal sold for commercial purposes was
265, lib tons, an increase of 1919 10 per
cent. over the year previous. The policy of
furnishing coal, approximately at cost, has
been maintained, and the amplest assurance
is given in the development Of the indus
tries along the line of the railway that it is
more advantageous to the company than
would be direct profit on the sale of the
coal. The sale of the company's lands in
1888 amounted to a larger sum than any
previous year since the sales commenced,
and exceeded the sales of last wear
by the sum of 1913 ,837. The total
number OF acres sold during the year was
1,166, 249 for the gross sum of S4, 0S1, 1913.
The number of purchasers were 3,814, who
bought at an average price of SO per acre
these lands at advanced prices, their settle
ment and cultivation will afford an amount
of local business for the railway of very ex-
tensiye and profitable character. All lands
granted the company have been
sold for distance of 200
miles west of the Missouri river
During 1888, the amount of the investment
accounts was increased by $4,1S1, 519, and
that there was further increase of 81, 907,-
344 in the land department assets. During
the past year the company has been subjected
to losses of earnings from causes beyond its
control. The volume Of business is largely
greater than the year preceding, but the
company was compelled by competition that
persisted in carrying freight at loss, to sur
render the transportation of a large amount
of competitive freight or accept a small
profit on the business. To strengthen its
position, and obviate, if possible, the recur-
renee of similar unwise action by rural lines.
The company formed an alliance known as
the "tripaitite'' with the railway lines ex-
tending eastward from the Missouri river.
By concurrent action, it is believed, that
great stability in rates have been insured,
and the interests of the railways and of the
business communities along their line have
been promoted. The principal matter in
dispute, between the government and the
company, is in relation to the amount which
shall be allowed the company as compensation
for carrying the mails. Under the decision of
the United States supreme court, the company
has charge against the United States for
this service, covering the period from Febru-
airy 1876, after which date the company gave
notice that it would no longer acquiesce in
the rate prescribed by the postmaster general
| to December 81, 1882, which exceeds the al
| lowances of the postmaster general for the
same period by upwards of So, 500, 900. The
| contention of the company is that until this
amount of mail compensation is definitely
ascertained, it will not be possible for the
government or the company's officers to state
correctly the net earnings of
the company's road, as contemplated under
the Thurman act, nor to offset
against the per centage of those net earnings,
the correct amount of. the government trans
| portation, which under the act referred to is
to be deducted before any cash balance can
be ascertained or required to be paid. By
reference to the report of the commissioner
on railroads, of 1888, it will be seen that the
total cash payments claimed by the govern
ment, to December 31st 1882, under the
| least favorable construction of the term "net
earnings under the act Of 1878, is 81, 727, :
742. Against this balance, claimed to be
due by the government, the company
has a claim of about SO, 500, 900.
Only a small portion of the cur
rent charge is entered in the earnings
| account of the company, so that no appre-
ciable diminution with current income would
ensue, were the whole of the controverted
claim for the year thrown out Of the years
balance. A continued increase in the local
traffic, and the rapid settlement of the gov
eminent and company lands, along its lines
of railway, are the surest guarantee of tine
future prosperity of the company. IN the
operation by the eompany's railway the high
est efficiency, consistent with judicious
economy, is the object sought to be attained
The tracks, building, machinery and equip
ment are maintained in thorough
repair and improvement, tending to
promote economy or to enhance the comfort
and safety of the passengers are constantly
being made. The report is signed, Sidney
Dillon, president. During the coming wear
and under the new board of directors, the
operation Of the road is, it is stated on good
authority, to be divided into four departments,
Ames to have charge of one, and Clark of
another. The heads of the other two are
not yet named. This plan is said to have
originated with Gould. The old officers were
reelected, and the usual quarterly dividend
of ~ per cent. declared.
The Mononarsd the Big Four.
Especial Telegram to the Globe.
CHICAGO, March Sit developed to-day
that the new traffic alliance between the