St. Paul daily globe., 1889-02-26
THE STATE RAILROADS
Must Go Into Bankruptcy If a Re-
duction in Rates is Enforced.

Members of the b use railroad COM
mittee had their fill lsst evening when,
for four hours, food of eloquence was
poured upon their devoted heads by
leading railroad officials of the state.
The reason for all this talk was the pro-
posed regulation of interurban fares.
and also the reduction Of passenger
rates from three cents to two cents per
mile.
j. T. Tucker, assistant general man
ager of the Milwaukee road, vigorously
opposed the reduction in the rate be-
tween st. Paul and Minneapolis. The
roads could not afford it. as the earn
ings of the Milwaukee road, for in
stance, were S139, $50, and their operat-
ing expenses $751; Any reduction
in the rates would cause correspond
ing reduction IN their equipment and
train service.
Col. Clough, second vice president of
the Manitoba system. also opposed the
bill.
j. T. McNuIte, representing the
Northern Pacific, made lengthy
speech against the reduction of the
passenger rate from 8 cents to 2 cents.
The actual cost of carrying passenger
OH the main and branch lines of the
Northern Pacific in this state was 2.03
cents per mile, and yet a bill was pro-
posed to reduce the rate below the act
ual cost of transportation. The
Northern Pacific ran thirty-siX pas
sengers per train per mile. Upon
the Manitoba the number was
forty passengers per train per.
mile. The gross earnings of the North
ern Pacific from every source per mile
Q nd n ON Of oil fhQ
railroads operating in the state was
s4,5lG per mile. The average gross
earnings per mile of railroads through
ont the United States was considerably
over $1,000. In other words, under the
present rates, the railroads of Mime
sofa only earned two-thirdS as much per
mile as the average railroad in
the United States. In the scale
Of average revenue Minnesota
stood tWenty-seven down on the
list. 1t had been said that the passen-
ger rate on the Pennsylvania road was
8 cents per mile and that of the New
York Central cents per mile. But
while the average gross earnings Of
railroads in Minnesota were $4.516 per
mile, that of the Pennsylvania line were
something over S25,000 per mile and
New York Central something over
900 per mile, or six times the amount
per mile Of the earnings of the roads in
this state; and yet they proposed
to reduce the rates! During the
the past wear the increase in operating
expenses of the railroads in this state
was 81, ,67S, 1876. and the decrease IN their
earnings -. 292 ,622. He added: sit
seems to me impossible that any legis-
lative body, having the interest of its
state, the financial reputation OF its peO-
pie at heart, will reduce the rate so low
that il must amount to confisea-
ton. If you reduce the passenger
rate below cost Of performing
the service, then the railway
commission of your state will bring
down the freight rates correspordingly
low. 1t is very certain that these gen
tlemen will not allow themselves to be
outdone by the legislature. The rail-
reads will have no remedy, and the
result will be that all the companies
must go into the hands of q receiver or
into bankruptcy"
Representative IVes-HoW is it that
your earnings per mile are higher i'll
Dakota than in Minnesota
MIR. McNulty-in the first place be-
cause our rates are little higher. and,
in the second place, the railway COM
miSsionerS in that state have exercised
moderate degree Of common sense.
Laughter.
Representative Fiynn-The earnings
of the railways in this state were re-
duced last year a large sum. Do you
know whether that aS owing to the re-