Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1888-07-30
Transportation Trouble
NEBRASKA RAILROADS AND THE
STATE BOARD STILL AT WAR.
A RAILROAD MANS TALK.
no Relieves the Politicians Interference
Prejudicial Alike to the Interests
o. tho Railways and tho
People.

'Ae- y 49, NRf| LaP SGNll E q
little discussion during the past few
months, regarding the proposed redue-
ton OF freight rates by the Nebraska
State Board of Transportation. In an in
tery1ew with a prominent railroad man,
he said.
"Thc proposed rates of the board Of
transportation were made in bad faith
against the railways, and were injurious
To the interests of, Nebraska, The bad
faith consists in this: Iii October of last
year the railway commissioners and the
representatives of the different railways
of the state, agreed npon a basis OF rates
which vas Il substantial reduction of the
rates then charged of 33M per cent. The
agreement went further, In this: That
the railways agreed to use their endeayor
to obtain a reduction of the Interstate
rate from the Missouri river to Chicago,
which they afterwards accomplished.
These rates, as agreed upon, went into
effect Nov. ], and were us low as any
railway having a prosperous business
could stand. They were so low that
many OF the weaker roads and branches
actually lost money. For example: The
road running from Valley, Neb., to Man
haitian, Kan. during the flrstthree months
of the present year lost s37, 600--that
is, it cost $$37t 700 more money to run
the road than their entire gross receipts,
without paying q dollar for interest. or
dividends upon the bonds. The BurIing-
ton road, as prosperous as any In the
country, have made but barely 6 per
cent. upon the money actually invested.
The Elkhorn Valley made less, and the
Grand Island and st. Joe have made but
l per cent, and as / remember, there
was no road in the state that was max
ing more Than q bare pittance upon the
capital invested under the rates existing
prior to the present reduction. The
State Board Of Transportation agreed that
If the railways would conform to the
October agreement, that would settle tho
controversy, and the rates would stand.
This was agreed to, but the board did
not carry u its part of the agreement.
HIbe proposed rates which the com
missiorers are endeavoring to enforce
are Injurious to the people of the state
CT Nebraska In that Ii inSures a crippled
service by the roads; absolutely prevents
the further construction of railways in
the state, and prccludes the possibility
of the companies making such necessary
Improvements as are required in the way
of union depots, ETC., along their lines.
"Nebraska is a new state. Last year
there was over ], 100 miles of railway
built In 1t. The present year, if it had
not been for this agitation, would have
found an equal or greater number of
miles OF road built, all of which has
been made an utter impossibllity by the
unfriendiy ~treatnlent given the roads,.
at would seem to me thatthe peoples
interests n the railways interests
should be Identical; instead of that, there
appears to have arisen in the state of
Nebraska a set of politicians wholly ig-
nnrant of the railway question, actuated
by u desire for Office, who are determined
to ruin the railways, That they may reap
q (, puhssity from the p~reiudices which
they may engessder against them"
"Hay you seen Judge Masan,s
letter and table of figures which he re-
Gently publishedgn queried the reporter.
Eyes; | have carefully read Judge
Mason's interview; and L say to you that
| vas surprised at its contents. Mason
has had the reputation of having a rood
deal of ability; and If he Is honest in this
letter / must say that / think the repu-
tation has been wrong. He asserts that
the railways in Nebraska can do business
for the same prices that they can in
Iowa. Now, let me show you how alb
surd that is. 1t costs so much money to
run a train ard keep q railway in its
proper condition, aud pay the interest
upon tho money expended in its con.
strnction; it costs about the same in
lowe as 1t does in Nebraska; and in both
states the road must be dependent FORTS
income upon the amount of business
done. All of tho business of the rail-
ways OF Nebraska must cross
over the Iowa roads in order
to reach Chicago or the sea-
board. The Iowa roads receive compen-
sation for every mile that these products
pass over their lines; and instead of be-
ing dependent, as Nebraska is, upon4its
local business, they nave this great inter
state traffic by which they can earn their
money and pay their interests. Our
through business, as compared with Iowa,
is nothing, because what through busi-
ness we have got goes over the Iowa
roads as well. Hence we are confined to
a local traffic, and the idea that we can
carry freightfo the same rate as they
can in Iowa is simply absurd. I think
in this whole question there is a grave
mistake being made. Look at the great
Elkhorn or Northwestern system that has
pushed westward to the wilds of Wyo-
ming. Those roads do not pay now, but
they will pay in the future when the
country becomes settled. Look st many
OF the Burlington branches--the road to
Wyoming, for example, and many of its
western branches thrown out into the
unsettled country. They were willing
TO make the investment, expecting to
get their returns when the country
should be settled up. The railways who
have pushed into these new regions and
made the settlement of the great west a
possibility are deserving of our most
friendly consideration, and believe
that the people of this state, IL they
could see the facts as they exist, would
be upon the side of the railways, and be
willing to allow them to make. a reason
able percentage upon their capital il.
vested. The Union Pacific may have IN
the earlier days stocked their road for a
great deal more than 1t was worth, and
more than it cost. But we all concede
so-day that the Union Pacific is honestly
managed; and yet, the Union Pacific is
barely making running expenses on Its
entire system II the railways are charg-
ing too much, then they must be making
too much money. Why cannot Judge
Mason show where they are making too
much money? Their books are open TO
him; are open to any body to ascertain
these facts.
shy opinion il simply this: that If we
had less politicians and mora men of
common, ordinary sense, this entire
agitation would have long since ceased,
and the railways and people of Nebraska
would have been the best oflfriends and
both prosperous instend of having a par.
aiyzed condition of things. New roads