St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-10-05
J. J. HILLS APPEAL
From the Grain Rate Lower
ing by the Railroad Com
mission.
HIS SIDE OF THE STORY
Presented by Col. Clough and
Others in Lengthy Aft
davits.
HIS SIDE OF THE STORY
WHAT IT is TO RUN A ROAD.
Rates We're Lower Than u.
P. Rates, With Less Bust
ness to Do.

The Great Northern Railway company
has appealed from the order of the rail
road commission Of this state reducing
its grain rates. The order is limited
solely to rates local to the state, and the
ableneSs of local rates. The company.
on the appeal, and on motion to stay the
order. has filed certain affjdavits. and
among others the affidavit of Vice
President w. p. Clough. as to earnings
cost of construction and operation. and
other matters material to the question.
Wee President Clough is made de.
PENDANT in the proceeding. and has filed
a lengthy affidavit, setting forth the
position Of the Great Northern i'll the
matter. The material portion of his
affidavit states, i'll substance, the fol.
lowing:
The Great Northern Railway com.
pany. as lessee, is now and has been
since the 1st day of February, 1890
operating the line of railway owned in
this state by the st. Paul. Minneapolis
d Manitoba Railway company; and by
the terms Of its lease, and as a condi-
ton to its continuance. it is under obi
cations to pay as rental to the Manitoba
company the interest on its bonded
Indebtedness, secured by mortgages OF
trust deeds covering its line of railway,
and dividend at PER cent per year
upon its capital stock, the total amount
of which is $30,000.000.
The mileage in this state is shown to
be 401, and the land grant pertaining
thereto is placed at value OF S33. 000, 600.
Various foreclosures are set out in full
i'll this connection. Outstanding capital
company and the first division OF the St.
Paul IL Pacific Railroad company
amounted to at least $1,000. 600. Jan. l,
1880. the total mileage OF the Manitoba
company. of railway So purchased and
constructed by it, amounted to 656.20
miles. Tbs cost Of acquiring right OF
way aud terminals, and surveying, locat-
Ing. constructing and co ripping the
line prior to Jan. l. 1850, was, III cash,
an amount largely in excess OF s1S.00U,-
900 or over S23,u00 per mile, exclusive
of the cost of procuring money for the
enterprise, which was necessarily
nearly 80 per cent additional
The state of Minnesota in 1858 pledged
its credit to aid in the construction OF
railroads in the state, by providing that
the governor of the state should, when
any ten miles of road had been coli
structed and completed ready for plac-
ing superstructIreS thereon, issue and
deliver to The railroad company COM
pletlng the same bends of the state
to the amount of 100000. being $4,000
per nile, and when evidence should be
FINISHED that any ten miles had been
campieted and cars running thereon,
the governor should issue like bonds of
100000, being $40, 600 per mile"
Between Jan. l, 1850, and Feb. l, 1890,
the Manitoba company expended S23.-
100000 In constructing 725 miles OF
track. which included, also, equipment
shops, terminals. machinery, surveying
etc. The 1.3Sl.25 nileS Of ROAD owned
by the Manitoba company exceeded S42.
$1,000, or over S30,500 per mile. Land
grant lands sold before Jan. l, 1894,
brought in $5.342.O00. This deducted
from the cost of construction and equip
ment lett construction cost OF $50, 995,
$50. From this the S5C0.0O0 sur
plus revenue used in construc-
ton leaves cost of $50. 49,, $50.
The actual money cost per mile. with
terminals, ETC., was on Jan. l, 1890,
after deductng all net receipts FROM
sale Of land grant lands, and the sur.
plus revenue applied TO construction
$26.422 per mile. 1t is estimated thai
these cannot be replaced at present cost
OF land, labor, material and construc
ton, for s42,0O0,000. The bond indebted
ness of the company on account of its
line in Minnesota, and secured by mort
cages or trust deeds covering lis line, Is
little over $4,000 per mile.
The gross earnings and net revenue
per mile of road for different years
ending June 30 of each year, on bust
ness local to the state, and on inter
state business, including revenue fo
mail. express and sleeping cars, hay,
been as follows: