The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-03-31

next preceding; that is, the decline Of
business in 1897, owing to unfavorable
conditions, matches the increase of 1895.
The second comparison in the article
referred to is between the year 1896,
which we have already said to be a
banner year in railroad business, and
the period from 1890 to 1893. AS is
stated elsewhere, those former years
were times Of trouble, of depleted earn
ings and of accommodating receivershi, -.
If their standard was to be CD ltinued,
there would probably be very few SOL
vent railroad companies IN the coun-
try. The existence of a single year
of moderate prosperity is not made, in
any other business, reason why
profits should be reduced to the level
of years that were uniformly trying
and disastrous.
The third comparison relates to the
business done by the railroad systems
of Minnesota and Iowa. Whether in
tentionally or inadvertently, it appears
that Mr.. Douglas has so chosen his
figures as to make this comparison I'M
fair and unreasonable. AS is stated
plainly in the report Of the Iowa rail-
road commissioners, there are several
large systems operating in the state
which did not make any returns at all.
Consequently, when the total freight
revenue of the railroads of the state
is put at $19,O00,000, which is between
$4,00000O and $4,000, 900 less than in Min
nesota, this does not include the earn
ings of over LOO miles of the most
profitable roads in Iowa. The omis-
sion of earnings from one-fifth of the
the showing entirely, and comparison is
made with the total earnings in Min
nesota, all Of which are reported. OF
course, this mistake is reflected in the
revenue per mile, and thereby the re-
suit is made incorrect, and the impress
sion left is erroneous.
The most remarkable blunder Of Mr..
Douglas figures, however, is found in
the statement of tons hauled in the
state. It would appear from this that
there were more than three times as
many tons Of freight carried in the year
in Iowa as in Minnesota. while the rev.
nenue of the roads was less If this
were true, it would, of course, show
that the people of Iowa were being
served at a greatly diminished cost,
as compared to the people Of Mime
sofa. But the $4,000 900 tons given as
the Iowa tonnage includes the freight
carried over the entire system of all
roads any part of whose lines extend
into the state of Iowa. Thus the whole
business of mammoth companies like
the Northwestern and the Burlington
is put into the Iowa list This is the
more inexcusable, inasmuch as the
Iowa report itself shows in another
place that the total tonnage of that
state, with the exception Of the
Burlington road, which made no
report, was less than $4,000, 900
tons. If we add to this amount a
proper allowance for the business of
the Burlington. the total would still
fall short of the $4,000 tons carried
in Minnesota. These corrections it is
due to make in the interest of fairness,
before the rate problem, as far as it
may be influenced by the statistics of
the question, is to be considered.
The real nrOhJoY,o + cao,,oe
a very large and very old one. It
is the problem of labor and capital ey-
erywhere. 1t is the problem Of doing
equal justice to all of the factors en-
gagged in the production, distribution
and exchange of wealth, so that no one
of them may suffer for the advantage
Of others. To attack it in any other
spirit than that of doing what is for
the greatest good of the whole com
munity is to injure both capital and
labor. AS far as wheat rates are con-
cerned, it is the fact that those pre-
vatling in the Northwest are the low
est in the world, outside of trunk line
rates, such as those between Chicago
and New York, or between st. Paul and
Minneapolis and Chicago, where the
volume of business is immense, and
solid trains run without change from
start to finish. The evidence given be-
fore the railroad committee quotes an
immense amount of rates from different
points in the Northwest to the ter
minals at st. Paul, Minneapolis and
Duluth, comparing them with rates for
equal distances out Of Chicago and
Kansas City. and finding them to be as
low as, or lower than, the lowest.
But the real question at issue, after
all. is what is a reasonable rate? That
being found, it ought to be applied. but
it cannot be found by a legislative
body. A reasonable rate means the
lowest possible rate that is consistent
with the conduct of the transportation
service, including a fair return on CAP
ital actually invested. It's determine
ton is matter of vast labor, the study
of comparative statistics and the in
vestigation Of the cost of construction
and operation Of railroad systems. That
is a work which properly devoIves upon
railroad commission, whose conclu-
sions are as final as an act Of the leg
islature but different from it in the
important particular that, if found in
correct or inadmissible, they are sub