The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-28
HIS ESTIMATES OF THE COST OF
THE EASTERN MINNESOTA
RAILWAY
ARE NOT BASED ON THE FACTS.
CORRECTION OF STATEMENTS THAT
MIGHT LEAD TO PREJU-
DICE.
COMPARISON OF RATES ON COAL
Shows They Are Not High as Com.
pared With Other Roads, East
and West.

In view of the statement made by Mr..
Douglas during the debate in the house
of representatives, Friday, to the effect
that the Eastern Railway Company
of Minnesota, was capitalized for $751;
600 per mile on account of seventy two
miles Of railway, when it probably did
not cost $4,000 per mile, a reporter for
the G b e called upon M. D. Grover,
general solicitor of the Great Northern
railway yesterday, and asked him if
Mr.. Douglas reported assertions were
correct. Mr.. Grover, in response wy
this inquiry made the following state
ment:
81 represented the Great Northern Railway
company in arguments that were had before
the committee upon the bill in question. No
such statement was made before the commit
tee in my hearing The gentleman preferred
to make 1t, as member of the house, under
circumstances where / would not be per-
mitted to answer or contradict him. The
statement was made under a mistake Of
facts, growing out of want of knowledge, or
else was made knowing that it was not
correct. Such statements, uncOntradicted,
tend to mislead the people and to SOW seeds
Of dlstrust and injustice In the first place.
the Eastern Railway of Minnesota commences
at the waters of Lake Superior, on the Wis
state, total length of seventy-two miles. 1t
would cost to purchase its terminal grounds
and erect the elevators, docks, slips and ter
minal facilities necessary for the transaction
of its business, even at present depressed
prices, not less than S., 900, 900. Two miles Of
road. running over a trestle, a large part of
which is a steel structure and leading to it's
terminals at Duluth cost not less than $780,,
900, or $3.50 600 per mile. The maximum grade
is four-tenths of / per cent To accomplish
this engineering difficulties had to be sur
mounted, swamps crossed, bitches dug and
tiled for drainage purposes. To overcome
these difficulties and to fill up places where
bridges would otherwise have been neces-
sary required the removal, some of 1t for
considerable distance, of more than LOCO, 900
yards of earth and material, more in the
aggregate than IL, 900 yards per mile, or as
much as would be required to grade an or
binary prairie railroad per mile. Taking the
cost of bridges rendered necessary for high
way crossings in the city of Superior and
other structures that are necessary for the
successful operation Of the road together
with the cost of the terminals, it is far
within the limits to say that Sc, G6G must
be expended before a stroke of work is done
toward the construction of the main track
Mr.. Douglas spoke of the road as seventy-two
miles in length. He seems to have no idea
to the extent of the yards, tracks and side
tracks that the Eastern Railway company
has constructed. In round numbers these
additional tracks to the main track aggre-
gate 100 miles. and the total trackage oper-
ated and owned by the Eastern Minnesota
Railway company is one hundred and seven
ty-two miles. Speaking of the main
track alone, in connection with the terminals,
including elevators, docks and all terminal
facilities will bring the cost of the road to
over $50, 900 per mile; and still you have no
road constructed not mile of sidetrack
no depot buildings and no rolling stock
''The bonds of the company bear interest
at the rate of 5 PEP cent, and every dollar Of
the bonds went into the construction of the
road. The road has been in operation for
nearly ten years During that time, out Of
earnings carried over and aggregated, dlv1-
dends have been declared in three years ag-
gregating 2S per cent the stock or less
than per cent per annum upon the invest
ment represented in the stock. The average
receipts per ton per mile on all the traffic Of
the road is about seven and one-half mills.
When Mr.. Douglas finds out his mistake pos
sibly he will be willing to correct it,