Audubon County Republican. [volume] (Audubon, Audubon Co., Iowa) 1885-1894, 1888-03-01


that distance had been reached. The Chi
cago 81 Northwestern road is the shortest
line from Lake Michigan to the Mississippi
river, one hundred and thirty eight miles,
We could not take into consideration any
1t tie rates until that boundary line had been
passed. We had no comparisons to make
with anything 1t will be found when we
exceed that distance the rates have been
reduced locally in Iowa. / think it will be
also found that the distance tariffs put forth
by several roads in the State on that date
showed lesser rates even for extreme long
distances in the State than the interstate
tariffs show, say from Chicago, four hundred
miles. That reduction of those tariffs we
understand to be in conformity with the
wishes of the Iowa Commission.
Judge Hubbard has alluded TO the fact
that the Northwestern was fortunate enough
before these evil days came upon us to have
acquired considerable surplus. That is true.
l think, by what we feel was good manage
ment, perhaps some degree of sagacity, we
managed to accumulate some nine or ten
millions of dollars of so-called surplus earn
ings. There was great deal of excitement
among Wall street men at various times as
to what would be done with the surplus. /
remember that every time the Board met,
they used TO come out with something like
have met; they have taken that watermelon
out of the safe, and have looked at 1t and
put it back in the safe again. Wall street
was in expectation of having the watermelon
some time. Suddenly the watermelon dis
appeared, and in this way: The money, of
course, had been spent in betterments, in
iron bridges, stone culvertS acquiring addi-
tional terminal facilities where they were
needed, additional side tracks, etc. The
money had been expended. 1t was
simply charged off the books and
wiped out. There was no watermelon
cut. 1t was spent to benefit the prop
eity, and you citizens of Iowa continue to
enjoy these benefits and / hope you will con-
tinuc to do So You say it was virtually long
an acknowledgement that our rates were too
high; that we had made too much money.
l do not think that is fair Interpretation to
put upon it. AS / say, every dollar of the
money was spent in betterments and i'm
provements of the property and fair pro-
portion was spent in this State, too.
These Improvements are still going on. L
think Judge Hubbard alluded to the fact
that about 1913 or 1870 miles of the 1,200 miles
in the State altogether had been ballaSted
with stone equal to the Pennsylvania road.
That is true and we expect to do more of it.
Last year we shortened our line, cut down
our grades at Cedar Rapids-spent for that
place alone $3.50, 900. We are now engaged
in spending about $500, 600 at Belle PLANE,
and vicinity, cutting down the hill. We eX-
peCt to spend as much more at Moingona in
building the new line around that bottom.
Altog ether, L think Iowa will get its full
share, if it has not had it already, of
surplus earnings.
Knight be asked in view of what has been
said by some gentlemen, why we continued
these expenditures. Why do we do this?
Our rate per ton per mile has decreased to
an alarming extent That is a frank state
mont For the months of September, Oct)-
ber November and December the freight
earnings per ton per mile of the Chicago 81
Northwestern system were less than one
cent per ton per mile, ranging from 81 to 90
hundreths of cent per ton per mile. Those
are alarming figures for a railroad west of
| the latitude of Chicago. We had in these
months. it is true, large increase of tom
| mage and there was an increase in the gross
earnings but in none of these months, with
| perhaps one exception, was there any in
| crease in the net. We are making these i'm
| proyements, expanding this money simply
| because we have to do business for less
money. We have got to do it for less
money. We realize that. That sheet shows
| ii. We have to retain to our line the bust
ness which properly belongs to it. We are
| paralleled through this State both sides
of us. The only way we can expect to
hold this trade on to our line is to provide
facilities and handle it properly and take
care of it, and to increase the speed of the
trains, and gentlemen, to make it it a first
class system in every respect. That is the
only way we can hope to live in that state
| of things. / do not really think that the rail-
roads of Iowa should be asked to carry freight
locally in this State at lower figures than at
| present, and by the way think our earnings
| from local freight traffic form about sixteen
| per cent of the earnings derived from freight
| traffic that passes over our roads in Iowa, in
| some shape, and the rest of the traffic
either originates outside and comes in or
originate inside and goes outside or origi-
mates on one side and goes across the State.
Am right about that, Judge?
Judge Hubbard: Yes, sir.
Mr.. Wicker: l don't think the freight
| tariff can be reduced in this State locally
without greatly damaging the railroads.
AT the risk of taking up more of your
| time than | ought, | want to say one word
| about this proposed reduction in passenger
| fares; because think it is most ill-advised.
| The question was asked to-day in the Senate
| Chamber, by what rules are you governed
| reasonable passenger fare?" l say in this
country it is only by comparison that you
| can judge of that question. What else have
| we to go by? What have they done in Mas
| sacllusettS, New York, Pennsylvania, Ohio,
| ard in other States where the population
| ranges from three to eight times what it does
| in the State of Iowa? There is but one
| railroad in this country whose local fare is
| down to two cents. That is the New York
| Central, think. Now there are two ele-
ments to my mind that are constantly oper-
| ating in passenger fares.
Chairman: Allow me to ask you ques-
ton. Are there not bills pending now be-
| fore the Legislature of Ohio tending to the
| reduction to two cents.
Mr.. Wicker: / do not know that.
Chairman And in Michigan also?
! Mr.. Wicker: / do not know that.
| Member: There is no Legislature in SEES
sion in Michigan at this time.
| Chairman: The Legislature of Ohio has
bills providing for two cent rate in Ohio,
think.
| Mr.. Wicker: There are two elements al
work in passenger fares, which should have
free and full play always. One is, perhaps,
an element that does not concern the people
of Iowa very much, certainly not at the
| present time. That is the question of subur.
ban travel. Travel where the price is meas
ured by the frequency of the ride. The sec
ond is the reduction that ought to be made
is being made, and justly so, to large
bodies and societies and that sort. There
should be always latitude enough to passen
ger fares to afford free play to that ele
ment. The Americans like to get together
pretty well. They are fond of society, and
they like to get together in a body, and it il
good thing too. 1t is a good thing fol
your growing cities to have the people como