Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1897-01-28
Will Not Reduce Passenger Rate.

The Illinois state board of railroad
and warehouse commissioners has de-
cided, after careful and thorough in
vestigation of the railway business in
this state, to report against the proposed
reduction of the passenger rate from
3 cents to 2 cents per mile. AS this
report is based upon accurate data from
official sources, it is safe to assume that
the present legislature will not care to
ignore recommendation made by
those who are authorized by the state
to protect the interests Of the people,
and at the same time to deal justly with
railway interests.
While it is important that the people
transportation that is consistent with
good service, any legislation that is
calculated to cripple the earning power
of the railways to the extent that they
will fail to yield a fair return upon
the invested capital is clearly opposed
to public policy. 1t is conceded by
those who are familiar with the history
of railroading for the past twenty years
that the railroads have been the heavi-
est sufferers from the widespread and
often unreasonable hostility to corpora
tons. They have been seriously en-
barrassed by an avalanche of unfriendly
bucolic legislation in many western
states, when they were struck by the
panic and the Wilson -Gorman tariff
law of 1894
The last three years has witnessed a
desperate struggle for existence on the
part of most of the western railways.
According to the report of the interstate
commerce commission for the year end
ing June 30, 1895, the railroad companies
of the United States lost in their opera
tions the enormous sum of $29, ,845, al.
Seventy per cent. of the stock failed to
pay dividends and there was default in
the payment of interest on II per cent.
of outstanding bonds.
The twenty-fifth annual report of the
Illinois railroad and warehouse commits
sioners, recently submitted, to the gov
ernor, showed that the Illinois lines had
suffered heavy losses from the business
depression and financial uncertainty of
the year. The report shows that only
sixteen of the forty-five roads operating
in Illinois paid any dividends and that
there was a net deficit for the year of
81 1903, 544 The passenger department
shows a decrease from last year of
s., ,423, ,95S, or 24.66 per cent. in the re-
ceipts from passengers, the average pas
senger rate per mile being p cents.
1t is possible that some Of the big
trunk lines might stand the proposed
reduction, but it must be borne III mind
that much of the railroad property in
Illinois is branch mileage, and any re-
ducton in fare would Inevitably result
in q curtailment oftransportation facili-
ties that would be inimical TO the inter
ests Of the travelling public.
AS matter of fact, there is no popu-
lar demand for reduced railway fares at
the present time. After three years of
disastrous depression the railways are
struggling to get a new lease of life un-
der an administration that gives pro Ut
ise of revival of prosperity in ali the
productive industries. The public in
terest would not be promoted by reduc-
ing the resources of the railways at this
time.-Times-H Herald, Chicago.