The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-04-10

required to handle the business in
North Dakota during the autumn and
early winter months, covering the
heaviest grain carrying period, and
upon his own experience and knowl-
edge in this connection.
Were the products of iron and steel.
entering into railroad construction,
when these roads were constructed,
higher than at PRESENT."
Very much higher
Was labor any higher?"
Very much higher-about 60 per
cent
How about real estate?"
Real estate and right of Way were
cheaper The cost of cross-ties would
not nave been much less. While the
timber was lower, the price of Dor
was higher; but l do not think there
was any material difference between
then and now
Attorney General Cowan objected to
the line OF testimony pursued by Mr..
Bum
Mr. Hendricks attention was called
to the figures given in connection with
me average value of land in the right
OF way. This was charged up on the
basis of $2296 per acre.
rms, he said, lis the average value
lhls rate per acre is based upon rail-,
way settlements recently made. ana
80 'iiS present market value of the
granted land, and this market valve
has been increased bv the Man Of
severance or cutting in and incidental
damage to crops. We find that it costs
ABOUT twice as much as the land is
worth FOR farming purposes to get a
railway right of way
upon what is this statement based -,
upon my own actual experience.''
Mr. Bum then led the witness into
a long lat
the features associated with the CON
structon of railroad, such as clean
ing grading, grubbing. rip-rapping.
pfldglng, ballasting and the like
w nat are tee prices upon which YOU
nave based these eStimates?', was ask
ed 80 '0r
ON the current prices for doing the
WORK at the present time'
At this point Mr. Kendrick- intro
duced statements to show the NECESSITY
Oh having always on hand a large
amount of freight equipments in order
10 meet the demands of the traffic of
the autumn and early winter months
IN connection with the movement of
grain IN North Dakota In apportion
ing the equipment necessary for the
conduct of this class of traffic the wit
ness said he assumed the North Dakota
line TO be operated as separate svs-
tenn.
we maze significant statement sub
sequently to the effect that the cost of
the construction of the Missouri river
bridge was put into the estimate at
tWo-thlrds the original cost of the
bridge, because the cost of material
and labor is less now than it was
then, and he thought the bridge could
De reproduced at two-thirds the origin
al cost.
What is your opinion as to the
comparative value of new road and
an Old road that has been in existence.
say twenty years, and has settled
road bed?
Il think the new road is of very mnch
less value. For the first three or four
years after road is constructed if
is necessary to work upon it contin-
uouSly. The entertainments settle the
slopes of the cuts will slide and in Da-
kota the facilities for water ways are
always more or less insufficient. Hence
the entire system has, in the course of
time, to be reconstructed. Ever since
the road was practically completed in
1888, we have found it necessary to
make new adjustments of the line. to
meet requirements that were not antici
pated at the time the road was built"
The attention of Mr. Kendrick was
called to the matter of commissions in
connection with the floating of the
struction of the road. In this connec-
ton he said:
Il ind that the construction of a rOod
really costs more than the amount es
timated, and I have sometimes been
taken to task on this point In NV ex
perlence L have learned that the cause
of this was the discount and commas
sions paid upon bonds
IF this road were to be reproduoed
in North Dakota, extending saw. from
Fargo to the Montana boundary. and
equipped as the road and branch lines
are now equipped. it would be neces
sary for the promoters undertaking the
construction to go to money centers
and make arrangement for securing
the money required on the work. That
money would be obtained by the sale
of bonds secured by a mortgage upon
the property as finished And it IS
only matter of experience and knowl-
edge what price a 5 per cent bond. for
instance, would bring in the New York
market under such conditions 1t is
my judgment, derived from the expert
ence of men who have engaged in the
task of securing money for the adj
Vancement of such enterprises that
the promoters of such road might
secure, perhaps, so per cent. on a 5 per
cent bond; and that price has BEEN
assigned to these securities, and from
sion upon the bonds that would be re-
quired to build this road"
State, upon your knowledge of
North Dakota, it's population and gen
eral condition, whether, in your iuds-
ment, the per cent bond that would
be required could be sold for so cents
on the dollar"
II am reasonably sure that the
bonds could not be sold for 80. and
that it would be impracticable In the
New York market without the guaran-
tee of the Northern Pacific Railway
company
The Characterization Of Mr.. Ken
drick by Attorney General Cowan was
deferred until tomorrow morning, in or
der that the stenographer's record
might be meanwhile completed for his
consideration and study in a prelim-
mary way.
David c. Shepherd, a civil engineer
| of large experience in the Northwest
and identified with the construction of
many of the roads west of the Missis-
sippi and with the Northern Pacific
| the Canadian Pacific and the Great
Northern, was next sworn as an ex-
pert He is a civil engineer by pro-
| fession, and seventy years old. He
| substantiated in detail the correctness
| of all of Mr. Hendricks estimates of
Vallle So also did 4 q W;n.+o, oe