St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-02-19

Here the comparison ceases for we have
got to the end of the La Crosse division.
quote from an article written by an
eminent railway authority:
With the threat of governmental inter-
ference in the control of railroad tariffs
there is a new element introduced which
| largely adds to the uncertainties that ex-
list to a greater or less extent under the
natural conditions. The capital to be in
vested in railroad undertakings, therefore,
demands the promise of larger return
than would otherwise be required. Such
interference, when it is exercised for any
other purpose than to redress wrongs and
prevent injustice, must always discourage
the investment of capital in new lines
which would afford further competition;
and higher rate of interest will be de-
manded on all the capital invested in rail-
roads before new line will venture in the
same field. Thus the competition of cap
ital, though an indirect, is yet a
powerful element in determining the
rates charged by railroads Capital is
eager to locate itself where is the fairest
promise of return, but if attacked or
threatened it fees from the place, and only
the strongest inducement or most earnest
promise can again lure it back to the dis
trusted locality
In the State of Iowa when they passed
the sO-called granger laws, railroad build
ing was absolutely arrested for five years,
and believe am right in saying that dur
ing those five years there were but twenty
miles of railroad built within the borders
of the State. How was it in our own
State. | read from the railroad COM
missiOner's report, page five, for the year
1881: u came into Office when railroad
enterprise was paralyzed, and the general
prosperity of the State at low ebb. When
there was great animOsity among the people
towards the railroads felt it my duty to
do everything / could to allay irritation
and keep the peace between the people and
the railroad corporations to the end that
our large agricultural territory might get
more roads. After an almost total suspen-
sion of railway construction i'll the Western
and Northwestern states for three years -
1S74-1S76 - Minnesota was the first to re-
sumo building roads, and kept in the lead
for several years, until we had substantially
q complete system of trunk lines. There is
to-day hardly cultivated farm in the State
from which the farmer cannot drive to a
railway station and return in day. | be-
lieve that the avoidance of Legislative inter-
ference with rates and the administration
of this office in a way to encourage the fur
ther investment of capital in railways III
this State has had an appreciable influence
in this progress and Development Now
that we have so many powerful corporations
competing for business we are assured
that branches and cross lines almost in
definite will be constructed, giving in
few years to every locality the benefits of
active competition and the lowest prac-
ticable rates" How eminently true do
we find the words of the commissioner.
AS have shown you, our rates are lower
than those of any of the other roads in any
state between the international boundary
line and st. Louis. Comparing the rates
of Minnesota with the rates of Massa-
chusetts, | find that of the seven leading
roads their average rate is 1924 per ton per
mile, while the average of the roads of
Minnesota for 1883 is 1.535 cents per ton
per mile, the difference being over two
thirds of u cent per ton per mile in favor of
Minnesota. The necessary rates to be
charged by any railroad to meet its obliga-
lions is entirely controlled by the amount
of business it has to do. In 1875 the Pitts
burgh, Fort Wayne & Chicago railroad car
ried 491 ,2S9, SS9 tons at an average rate of
LII cents per ton per mile, and earned net
$2,05s, $50. In 1880, five years later, the
same railroad carried SOC, 257, 399 tons, at
80 cents per ton per mile, and their profits
on the same number of miles of railroad
was 81, 800, $50, or over 30 per cent more
profit on the same amount of road, with
the rate reduced 20 per cent. The Union
Pacific Railroad, in 1877, carried 35S, 9S2, OBJ
tons at an average rate of 2. II cents per ton
per mile. Their revenue from the above
amounted to 80. 73S, 099. In 1882 they car
ried 902, 9S1 300 tons at an average rate of
Isl cents per ton per mile, for which they
received SIG, 302, 1872 Which shows that the
increased tonnage is the element that will
enable road to reduce its rates beyond
any other single cause.
AN ILLUSTRATION.
/ will give you an illustration of what
the Minneapolis q Manitoba Railroad did
last year and what they might have done.
Last year we carried $40, 347, SO tons, and
received S., ia, 1881 at the rate of 1.79
cents per ton per mile. At the rate of |. 10
cents per ton per mile, with twice the ton
mage, we would have received nearly 81
900, 900 more money; and if you will treble
the tonnage of the Manitoba road, you can
cut the rates to one cent per ton per mile,
and we will make them that figure vOlun-
tarily.
To quote further from the same writer:
"There is an incidental result which Is
important to note. The greatest traffic is
possible in those things which are produced
in the largest quantities and for which the
demand is practically unlimited. These,
therefore, have the lOwestrates. They con-
stitute primarily the necessities OF life,
which are consumed by all, and secOndarily
the cheaper articles which are the common
comforts of the poorer classes As com
modities become more and more expen-
sive. they become confined to a smaller
class. Their consumption becomes, there
fore, more restricted. and the incen-
tive to the railroad to carry them at
lower rates is reduced in the same degree.
These natural principles affect the rates of
transportation exactly a. similar laws Of
competition in trade affect prices. They
tend constantly to cheaper, first, the neces-
saries of life: second, the comforts, and
last and least the luxuries.