St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-02-09
STEVENSON MATTER IN.
RGUMEHTS PRO AND COW HEARD 81
THE COMMISSION.
WEEKS BEFORE DECISION
Plaintiff Made Charge OF Watered
stock-Defendant Showed the
Enormous Sums Invested In
the Road and the Vast Amount
1t Costs to Operate Massive
Case.

At the STEVENSON hearing before the
state railroad commission, involving the
rates from Crookston to St. Paul and
Minneapolis terminals, yesterday. Mr..
STEVENSON appeared for the complain
ant, Attorney General Childs for the
: commission and Mr.. Grover for the
Great Northern. After argument the
case was taken under Amusement. No
briefs were submitted, but a vast
amount of documentary matter, involv-
ing weeks Of consideration, was filed.
On the II side is the charge of excess.
i've charges, watered stock, alleged
charges based OH watered stock, and
the whole line Of Populistic truths ana
vagarles, backed by evidence as to the
charges under laws in Iowa and Illinois,
and evidence as to cost of construction
and operation from the c~Omplainant'S
standpoint. On the other side are maps,
figures and estin aies from the books of
the company. The total cost of the
road, the cost per mile. cost of rolling
stock, of repairs, of operation, the in
terest charges, life of rolling stock,
and, in fact, every element forming a
feature in tile cost of construction.
maintenance and operation. The coln-
pany appears To have taken the public
into its confidence with a view to set
ting at rest vague charges and forcing
discussions on facts as they are.
1t Is shown that the cost of the road
was SGT, 422 per mile in Minnesota, and
that the earnings for 1893 increased
Over those of 1892 as those of 1892
showed al increase owe the previous
year, gave d return of only per cent on
a cost OF S23, 900 per mile. 1t was shown
by Col. Crooks that the road and rolling
stock and equipmen S of every nature
as they are today. including terminal
facilities, could net be duplicated for
less thar $50, 200 per mile. Other expert
testimony, that of General Manager
Scott. of the Omaha. showed that the
road and equipments could not he du-
plicated for less than $50. 0GO, aside from
the terminals. II was conceded that the
bonded debt of the Great Northern sys-
tenn of 8, 75S miles. without the Willmar
| and Sioux Falls branches, running it up
| to Z, 400 miles, is $S5, 000, 600, Involving in
terest charges of over "a, 900, 900 per all
mum, and that the lease of the Manitoba
to the Great Northern provides for 6 per
cent guaranteed dividends on $50, OO0, 900
| capital stock; but it was held that the
commission should take into considera-
ton only what the road cost to build.
maintain and operate, or foT what a new
! line could be built, equipped, main
tanned and operated, aud not vague
charges or suspicious as to watered
stock. 1t was shown that the charges
| in Minnesota. from the point in ques-
ton. did not exceed the charges for SIM
liar distances from Iowa points to Chi
cago, though they were slightly in ex-
cess of the combined rates fixed by the
local LAVISH i'll Iowa and Illinois. but not
| practically applied, because state laws
cannot be and are not applied to inter
state commerce.
IL The value of the ST. Paul and Minne-
j apoliS terminals was placed at s., 000,-
600; on this the company pays a rental
of 10000, per annum, and that is claimed
to be better than to own. cheaper for
the company and better for the city.
The sparse settlements and consequent
light business were considered as an
! element in comparison with the bnsi-
ness originating in thickly settled por-
tons Of the country where rates are
claimed to be lower. 1t was also claimed
that so per cent of the cars used in the
transportation of wheat are sen back
as empties, while on the roads from
| HhiaorD I'm, 1n L., ,>,. H..
and the receipts correspondingly i'll.
| creased.
1t will be several weeks before a de-
termination can be reached, as the mass
of testimony is appalling.