The sun. [volume] (Morris, Stevens County, Minn.) 1882-1895, 1886-12-30

tain between these corporations and the public
as is possible under separate and independent
state action. The problem cannot, however
reach a solution entirely satisfactory until the
general government shall supplement state ae-
ton by the adoption Of federal policy which
shall have in view the determination of qnes-
tions relating to Interstate commerce. Inc
public sentiment Of the country, with marked
unanimity, is demanding OF congress legislation
to this end. 1t remains to be seen how long ad-
verse influences shall postpone Its enactment
The commissioners recommend such amend
ments and changes in the law as their expert
ence and investigations have suggested ara
necessary to make it more effective bcspeak
for them your hearty Endorsement, and l. earn
estiy invoke your early action respecting the
additional legislation contemplated in the draft&
of laws they submit tor your consideration.
Clearly. in my view, the commissioners should
be authorized 10 revise and amend the tar1f1s OF
the railroad companies respecting rates charged
for trans pcrtation OF freight and passengers. III
upon complaint, or otherwise. IG shall appear TO
the commission, after careful Investigation, that
such rates are in any respect unequal. unjust
or unreasonable, IL should be authorized TO re-
quire and compel such changes shall make
them equal. reasonable and just There can DC
no good ground of objection to this regulation
upon the part of the companies themselves. In
deed, they should rather wish to see 1t estab-
lished, as the process OF It's enforcement would
give opportunity Jor such vindicatIon OF theu
equitable policy respecting the Iubiic as the
facts in each case would warrant
The excessive and fictitious Capitalization of
the property OF railway companies is proper
subject for legislative consideration. 1t Is no
Joriously the practice of these companies, after
realizing from the sale OF their bonds money
sufficient TO build and equip their lines, to issue
In addition stock to an equal or greater amount.
representing a rule no value whatever, but
appropriated as a grRtuity by The syndicate
controlling the franchises of the company. To
give these false issues Of securities real vaiue,
dividends mnst be earned by the road and paid
thereon The practical effect OF this is the perpe-
tration of fraud upon the public Rates of trans
portation must be fixed high enough to realize
net earnings sufficient to pay these dividends
after fixed charges are met AS rule. II COM
plant is made that rates are high and that COM
modities will not bear cost OF transportation,
the company responds that it is charging only
what is necessary To earn q falr income upon fes
investment. and, perhaps. refers to Its sworn
statements made to the board OF commissioners
as to the amount Of such investment, which al
ways includes such over1ssue OF securtles-
This practice does not require elaboration TO ex-
pose its oppressive and dishonest character but
it loudly calls for a remedy The drafts tor acts
propoposed by the commissioners, TO prohibit
the issuing OF false, fraudulent, and part pad
unpaid shares OF stock Of railroad COM
panies, and to regulate the proceedings OF
railroad companies desiring to increase their
capital stock, will protect the publ against
growth of the evil The evident remedy, as re-
CARDS existing corporations, is an adjustment
of their revenues and dividends upon the basis
OF fair and liberal estimate of the actual cost
or value of their properties.
The incorporation into the fundamental law OF
the state Of an amendment asserting the full
power of the state to corporate control is
recommendation of the commissioners in which
l cordially concur. Though this principle is
sustained by the courts it is not wholly admit
ted by the corporations. As an authority com-
ing from the constitution it would command &C.
QuieScence.
The labors of the board under the law for the
regulation of warehouses and the inspection OF
grain have resulted in the inauguration OF a sys-
TEN OF state inspection and weighing which has
worked most satisfactorily. The grades estab-
lished and rules adopted by the board for the
handling of grain have had the effect to remove
the cause for much of the complaint that had
existed among farmers and country shippers, Uf
irregularities and abuses respecting the disposi-
ton OF their property Minnesota grades OF
wheat are the now recoyhized standard in East
ern and European markets. and the integrity of
our state inspection commands the full conf
dence OF the trade. Undoubtedly the adoption
of this system has added appreciably to the
market value of our wheat, and resulted in real
izlng much more to the producer than he would
have received under the old order of things
The grades and rules of inspection as first es-
tablished proved so satisfactory that any change
III them was generally objected to by farmers
and dealers at the commencement Of the pres
ent crop year.
Some amendments to the law correcting i'm
psrtections widening its scope and extending
the supervision of the commissioners to
country elevators and warehouses, are recon-
mended by the board
The successful results achieved under the rail-
road and warehouse laws have been so largely
due to the ability. industry and aptitude for
their work of the commissioners, that l feel they
have earned the thanks Of the people of
the state. They have secured conces-
sions from the railroad companies greater than
have ever been accorded to any state railroad
commission in the country, and they have in
ausurated system of state grain inspection
which is being quoted and copied a model in
some OF the older states.
There are now in operation 4, 900 miles of
railroad in the state an increase of 73S miles in
tw" years Cost per mile. as reported, $685.
The earnings of these roads were as follows:
1885 1885,
Gross. ........ ....s22. 617 1879 II s25.1o2sls "a
Net. ....... I1,456,662 Is 13,o64a52 5s
Taxes paid to the
state. ............... e11.743 IS 612,545 "a
RESUME.
During the five years it has been my privilege
to occupy the executive office Minnesota has
her history and hardly eQualed by that of any
other community OF the country for like period
of time. Her growth in population has been
nearly 60 per cent. and her assessed real and
personal estate has increased from S271, 5S. 961
In 1881 to S45S. 424.777 in 1856 The indus
tries and business interests OF her people have
in population and wealth, and the foundations
have been broadened and strengthened for that
greatness of empire which is the abundant
promise of our future destiny. A brief reference
to the measures and policy that have specially
characterized the administration of her public
interests during this period may not be regarded
out of place in this connection.
So rapid growth has necessarily involved
largely increased expenditures in the mainte-
nance of the several departments of the state
government and in the enlarge cement and support
Of her state institutions. Extraordinary ex-
penditures have also been occasioned by the ne
cessity OF replacing public structures destroyed
by fire. notably the state capitol, the state
prison and the first hospital for the insane Ex-
penditures for permanent public improvements
the past five years have exceeded in the aggre-
gate 81. 500, 600. The interest also upon the
railroad adjustment bonds which represent
our present state debt first became
burden upon the treasury in 1882. But not
withstandlng these largely increased demands
upon the state treasury they have been promptly
met and the public debt considerably reduced
without adding to the burdens of the people in
the way Of taxation: in fact, there has been paid
as taxes to the state less than was paid during
either of the two periods OF five years i'm
mediateiy preceding. The average for the five
ennum for the five years ending with 1881
$473,S7S.5S and for the fte years ending with
1886 $44S,6 17.97. This in view of the enor-
mously increased assessed valuation of the state
would further show largely diminished rate of
taxation. The averaged rate for the first period
named was 2S-1OO mills per annum and for
the last 46-1 mills. This showing has been
made possible mainly by largely augmented
revenues of the state from other sources, especi-
ally receipts from railroad and insurance COM
panies The trust funds have been increased
from Sc, 27S911.72i in SS1 to $9.601, 637. IA in
1886. These additions are the proceeds of the
sale OF land and pine stumpage belonging to the
several funds, except $l42, S06.1 IL which has
been realized as profit on the sale and exchange
Of securities held by these funds. Recent in
vestment, of these funds have been in the bonds
Of the State of Tennessee which have LARGELY in
creased in value since their purchase, and if sold
at the price at which the last purchase was
made further profit Of $194, $40 would be re-
allied
As an agency in the line of public reform and
retrenchmenr in public expenses the state board
OF corrections and charities was organized in
1885. Its efficiency in this service has been
shown in the improved methods adopted
through its instrumentality in many of the
counties Of the state, in the administration of
their local institutions and the decrease in cost
Of maintaining their charitable and penal de-
pendents. The board have also instituted