St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-01-29


Manitoba road. He then took up rates in
Iowa and made the same com parsons, show
ing difference in favor of the Manitoba
road of from one quarter to six cents per ton
per hundred.
Continuing he said the Minnesota roads
were carrying grain at lower rates than the
roads of any Of the states to the south OF us.
He then compared the Manitoba
rates in the Breckenridge division
with the Milwaukee ~ st. Paul
from Milwaukee to La Crosse, also showing
the Manitoba rates the lowest. He found,
he said, by the report of the commissioners
OF Massachusetts, that the average rate in
that state was 222 per ton per mile, against
1.53 in Minnesota. The commissioners of
Iowa prided themselves that they had been
able to prevent an increase of rates in that
state since 1878. In Minnesota in that time
there bad been reduction of over 40 per
cent, the result OF natural causes and liberal
management backed up by desire of rail-
road management to do its share in building
up and developing the country.
He then read from Mr.. Lancy, railroad
writer in opposition to government interior
ence with railroad management Also from
the report of the commissioner of innesota
in 1873 to tue same effect Also from the
Window was chairman in 1875, which holds
that competition is the true rate regulator.
The question of cheap transportation, Mr..
Hill said must always be determined by the
number of tons to be carried. Last year his
road carried 3, 040, 900 tons, for which it re-
ceived SO, 414, 00C. Double the tonnage and
cut down the rate So per cent and yet their
receipts would be increased nearly
S2,000,000. Give tonnage enough and
the rate could be safely cut
down TO one cent per ton per mile. All
road wants is business, then a proportion
ally low rate will be given. All that is asked
is fair interest on their investment. The
cost of his road, less the land grant, every
acre of which had been honestly accounted
for, was S54, 294, 600. The commissioners of
the state of Iowa applied to the railroads of
that state to reduce their rates on corn so as
to encourage the farmers to move their crop.
The request was denied because the railroads
held if they cut down their rates to meet the
emergency, the farmers would demur when
rates were again put up to a paying basis.
| The situation was the same in Mime
sofa, as to the condition of the
farmers, and he could say that his
road had met the emergency by cutting down
the rates without any government pressure.
At the last meeting Of the directors he had
asked permission to cut down their dividends
| $500, 600 so that he could cut down the rate
on grain 10 per cent at every station. The
request was granted and before bushel of
the present crop was moved, and without
state Intervention, the reduction was made.
And il should be understood that 10 per
cent. gross was equal to 90 per cent. net.
There is invested $751; 900, 900 in railroad
/ ~, .nto ryae - fha in,
terest of that invested property to so manage
it as TO build it up. Government regulation
is simply offering a premium to railroad
officials to use their best efforts to keep up
| rates.
! In closing, Mr.. Hill said his figures were
official and could be verified, and they proved
there was no parallel to the reduction of
rates in Minnesota in the past two years. and
the present year, he believed, would show
corresponding reduction. He wished the
committee to consider that if they took from
the owners the control of the $l61 200, 900 of
railroad property OF the state, they would do
it great injustice and do an injury to the
state. All he asked was that the committee
and the legislation would do fairly by his
road.
Mr.. Ansel Oppenheim stated he had a tel
egram from Mr.. Cakes, of the Northern Pa
cite railroad, asking the committee 10 post
pone action on their proposed bill until Mr..
Clark could appear before the committee and
be heard upon the Illinois law.
Mr.. Gilbert, OF the ST. Paul board of trade,
said it had some suggestions to make in ref
erence TO grain inspection and warehouses,
but as it was late they would defer the pre-
sentation until some other time.
Mr.. A. Oppenheim, again addressing the
committee, said railroad officials generally
did not understand that they desired the Il
linois law considered and discussed, and
hence they were not prepared on that sub
ject. He would therefore suggest an adjourn
ment to another evening.
Mr. StordOck, chairman Of the house com
mittee, announced that the request of the
Northern Pacific would be considered by the
committee.
Mr.. Burngame, of the committee, said
the purpose OF the meeting was to get the
views Of the railroad men on the Illinois law
as 1t applied to the situation in Minnesota,
and he regretted the apparent misapprehen-
sion.
JAS. SMITH, JR.,
Of the ST. Paul 81 Duluth
road. in answer TO calls, thus addressed the
committee briefly. He said he was not ia
milar with the Illinois law. But the COM
mittee should bear in mind that Minnesota
was at the end of long haul, and that leg
isation which would be just to sections
nearer the great eastern markets would not
be just or proper here. In this connection
he referred 10 the bill Of Senator Christeuse sen,
under which he said the rate on car of
freight from here to Minneapolis would be
only mn m L.
would be 10 cents TO Chicago aud 40 to
New York. Charges must be made by the
estimate haul, more pro rata for a short than
q long haul. Arbitrary rates could not be
established. No one could foretcl the cx-
peuscs or demands to be made upon the In
come OF n road. Tariffs had TO be made to
suit the times and emergencies as they arose
Referring especially to the Duluth road,
Mr. Smith said That 1000 people owned its
stock-there was no water in it-and for
twelve years it had struggled along without
paying a dividend For the last three years
It had paid a dividend Of 81 per cent Be
fore that time it was operated at the expense
OF the stockholders. Legislation, II any,
s1ould be TO insure fair treatment to the
roads. They should be allowed 10 charge fair
rates, and should be required TO keep their
roads in first class condition. IL is TO the
interests OF the roads to make their rates as
low as possible, and to build up the COM
muuitics along their lines. The question
Of railroad governance is too important
for hasty legislation. Discrimination in its
real sense should not be allowed, but all men
should BE- treated alike under like circum-
stances. He thea spoke briefly With reference
to grain inspection, and closed with an ap-
peal to the committee 10 move slowly and
carefully in whatever legislation they under
took.
2. Z. DELANO,
an old time railroad man, followed. He
said he had watched railroad legislation in
Minnesota from the time OF the first terri