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

lust adjustment Of the relations that shouId oh
tain between these corporations and the pubilc
az il possible under separate and independent
state action. The problem cannot, however,
reach a solution entirely satisfactory mill The
general government shall supplement STATE ac-
ton by the adoption or feIefaI IolcH when
shall have III view the determination OF qnes-
tions relating 10 interstate commerce. The
public sentiment 81 the country, win market
unanitnitS, ls demanding of congress IeE.ssatipD
to this end. il remains to De seen how tong al
verse influences shall postpone its enactment
The commissioners recommend such amend
ments and chauges IL the law as their eNie!I-
cRcc ind invest Eat ions have suggested ara
necessary to make it more tfectIye- ! bcspeak
Tor them your hearty Enforcement, and earn
estiV IHvOke ?OuT early aC1On respecting the
additional l. gislation contemplated III the drafts
of laws they submit Ior your consiaeration
Clearly, in Hv view, the commissioners rAoulG
be authorized 10 revise and amend the falIns or
the TdiIrOad companies respecting rates charged
for trans pcrtatiOn u freight and passengers. If
upon complaint, Or Otherwise IL shall appear TO
the commission, after caTctGl invest IA ION, that
such rates in any respect "uncqEoL II. JUST
or unreasonable" il should be authorized 10 re-
quire and compel such changes as stall MAKE
them equal, reasonable ana just. There can be
no good ground OF objection to this reputation
upon the part of the companies themselves. In
deed. they should rather wish to see 1t stab
lished as the process Of its enforcement Woutd
give opportunity Jor such vindicatIon OF theH
equitable policy respecting the IuDiic as The
facts il each would warrant.
The excessive and fictitious Capitalization Of
the property OF railway companies Is 4 proper
subject Tor legislative consideration 1t : no
uoriouSly the practice of these companies, after
realizing from he sale OF their bonds money
sufficient TO build and equip their lines, TO issue
in addition stock TO an equal o. greater amount
representing rule no value whatever, out
appropriated gTetuIty by The syndicate
controlling the franchises Of the company. IL
give these false ISSUES of securities real value,
dividends muSt Ge earned BY the road and paid
thereon. The practical effect Of tins Is the pere
trati5n Of fraud upon the public Rates Of trans-
portation must be fixed nigh enough 70 rsailze
net earnings sufficient 10 pay these dividends
after fixed charges are met. As rule, II com
plant II MADE that rates are high and that COM
mCditIes viii NJ. bear cost u transportation,
the company c"SpOG|s that II - Charging Only
what is necessary [, earn a tsIr income upon its
investment, and, perhaps, refers IN It, S"ora
statements made to he board OF cCun.iss!a@ers
as to the amount Of such investment, Wttc.- al
ways inclnaes such oYcrl@sre Il securities
This practice docs no require ELABORATE = o OK
pose it, og prCsNlYc and dishonest character. but
il loudly calls lor remedy. TIE lra1ts In Gcts
prolopoSe1 by the commissioners, - Ir5alh4t
the "IssUing OF false, fraudulent. GEd Iys,T-pasd
or unpaid shares Of lock q railroad CON-
panies." and 10 regulate the Proceedings CT
railroad companies desiring 10 increase theiF
capital stock, will protect the pub &C against
growth Of the evil The evident remedy. as re
CARDS e&istIn.. corporations j. an adjustment
OF their revenues and dividends upon the basis
OF fair and liberal estimate OF tue actual cost
OF value of their properties,
The Incorporation into the fundamental law OF
the state Of amendment asserting the full
power Of the state a. to corporate control Is 4
recommendation OF The commissioners in which
l cordially concuI Though this principe IL
sustained by the courts i l. Tot wholly admit
ted by the corporations. A. authority coz
ing from the constitution ii would command &C.
Quescence.
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 sye-
TEN of state inspection and weighing which mas
worked most satisfactorily. The grades cSt3b-
lished and rules adopted by ne board Tor the
handling Of grain have had the effect TO remove
Ha f1r 1PlI Of 1slg1y1 IA had
existed among fernlers and country shippers, Of
IRREGULARITIES and abuses respecting the aisrosj-
ton Of their property. Minnesota grades Of
wheat are the now recognized standard IN Last
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 apprecialiy TO the
market value OF our wheat. and resulted n real
izlng much more to the producer than he would
have received under the cd order OF things
The grades and rules OF inspection as frs es-
tabiished proved so satisfactory thai any change
Ill them was generally objected to by farmers
and dealers at the CONNIE ucern ai1t OF the pres
ent crop year
Some amendments o the law correcting i'm
PROJECTIONS. widening its scope and extending
the supervision Of the commissioners 70
country elevators and warehouses, are recon-
mended by the board.
The successful results achieved under the rail-
road and warehO uSe laws have been so largely
due to The ability Industry and aptitude for
their work OF the commiss onerS, that feel they
have earned the thanks Of the peOple of
the state. They have secured conces-
slons from the railroad companies greater than
have ever been accorded to any state railroad
commission in the country, and they have in
au-urated system OF state grain inspection
which is being quoted and copied as a model in
some OF the older states.
There are now in operation 1900 miles of
railroad in the state. increase of 13S miles in
744sl
The earnings of these roads were as follows:
!NS2. 1850.
Taxes paid to the
state. ............... tIl.t43 90 612,545 "
A RESUME.
During the five years il has been my privilege
to occupy the executive office Minnesota has
experienced development unprecedented in
her history. and hardly cQu,led by that Of any
other community OF the country for a like period
of time. Her growth i'll population has been
nearly 60 per cent. and lier assessed real and
personal estate has increased from SCI, 1859
in 1851 TO S45s, 424,1.7 i'll 1s>6. the indus
tries and business interests of her people have
kept pace in their development with this growth
in population and weslth. and the foundations
have been broaGeGed and strenst he1ed fer that
greatness OF empire which is the abundant
promise of our future destiny 4 brief ref, renee
to tue measures and policy that hlyA specially
characterized the administration of her public
interests during this period may rot be regarded
out OF place il this connection.
So rapid a growth has necessarily involved
largely increased expenditures in the maiute-
nance Of the several departments of the state
government and in the enhancement a1d support
Of her state institutions. Extraordinary
pendltures have also been occasoned by the ne
cesslty OF replacing public structures DESTROYED
by fire. notably the state caplto o., the state
prison and the first hospital for the insane. EX-
pendi5ures for permanent public improvements
the past five years have exceeded Ill the agcre-
gate $1,000. 600. The interest also upon the
railroad adjustment bonds which represent
present state debt first became =
burden upon the treasury in 1sS2 Bus not
outstanding 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 IL
the way of taxation i'll fact there has been paid
as taxes to the state less than paid during
mediately preceding The average for the five
years ending with 1876 was S472, oS62l per
annum. for the five years ending with 1881
$473. SIS. SO and for the five yearH ending with
1886 S41S617a7 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 3 2S-1oo mills per annum and for
the last l 46-10O 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 S6,27S.911. - in ISL to 800 ,637.14 in
1886. These additions ale the proceeds OF the
sale OF land and pine stumpage belonging to the
several funds, except $142, SOC. 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 a further profit of S194, $40 would be re-
allied.
As an agency in the line of public reform and
retrenchment in public expenses the state board
of corrections and charities organized in
1885. Its efficiency i'll 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-
The boDrd have also instituted