The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-03-28
OLSON IS NOT SATISFIED
PROPOSED REDUCTION IN GRAIN
RATES TO SOUTHWESTERN MIN
NESOTA NOT ENOUGH
He SAYS IT DOES NOT ANSWER
Charge Is Made That Proceeds of
BOnd SnIeS Have Been Devoted
to other Than Railroad
Purposes.

OF Sherpurn, yesterday MED with the
railroad and warehouse commission the
following protest:
TO the Honorable Board of Railroad
Commssioners-Gent The railroad
companies We're cited TO show cause on
Feb. q why grain rates from the South
west To Minneapolis should not be re-
Ouced in Minnesota. The case was adj
1ourned for thirty-hVe days TO give the
railroad companies time to prepare the
case. They come in here with a proposed
reduction. but with no real answer. l
request you to act in the matter now,
10 take into consideration the actual cost
and value Of the roads measured by what
they can be reproduced for and what
equipments and what eXtortions they
have collected from their patrons
IN the past six years to be divided as
dividends on stock and interest on bonds
/ ask for 40 per cent reduction in grain
rates from Sherburne to Minneapolis
about 40 miles distant by one road and
geo by the other. That the distance rate
be made on the same basis.
l ask you to ascertain what part of the
capitalization of the Minneapolis & ST.
Louis X. K. company is excessive and
not entitled to any interest or dividends.
l charge that the capitalization OF the
Minneapolis & ST. Louis r. r. company
Is excessive, and that the stockholders
as such never paid anything towards
building the road or eouippine it: thai
the stock of the Minneapolis & St Louis
II. X. company was wiped out by fore
closure sale Oct. II, 1884 confirmed by the
court Oct. 81 1894, and that the stock
authorized or Issued Nov. /, 1894 by the
BOARD or directors or owners Of the Min
neapolis " ST. Louis r. r. company new
er was paid for, but has drawn large
sums or dividends for five years past
or since Nov /, 1894. which is extortion.
charge that large amounts OF bonds
nave been issued since Oct 81 1894 pur-
ported to be sold and the proceeds used
for legitimate business. which | denV
o ma II mas been so used-part of 1t. I
sHeee that large sums thereof has been
diverted 10. private use and not for the
use OF the Minneapolis & st. Louis r. r.
company, and therefore are not entitled
10 compensation; Rates should be re-
Guceu accordingly. Forty per cent re-
ducuon In grain rates in Minnesota en-
the minneapolis & St. Louis r. r. will
De reasonable rate which I ask you to
prOmulgate for said railroad and other
railroads on the same basis and enforce
The revenue received by the MinneaD-
oils q st. Louis r. r. company for the
year ending June go 1899. was 81 645 O64 %.
me net earnings including interest and
uNluends net paid and interest received
was $;Z93, 99 ~ e. The opera ting expenses
were $l,ol6,3l6.69. On a basis of ST. 500, O0n
capital Tor 81. SIS miles of road owned
Jan J. 1898 The interest on IS, $4,000 at
per cent interest is 1923. 500, $1,SS2,O 90 at 6
per cent interest Is So. 92O. 81. 782, 600 at
per cent interest Is $780, 100; 81 So miles
$hoOO 40 interest is $455, $40; taxes for the
S e3f 90 81 "a 'oO25; total proper deductions
go 80: o neI earnings, excluding inter
est NII6.9498 (there Is another Interest
credit for deposits not strictly earnings
@l9'Soo.i9); balance, eXtOrtion, 1886, 700 CO.
niiiHnesola part OF the road earns more
aIIu CoSlS less to operate than the parts
IN olher states of the MinneapOlis & ST
LOUIS H. X. does, mea sured by oneratiI1g
eNpthSes-percentag of freight earnings
passenger trains earn very little 70 an
ply on interest Secret rates reduce The
gross freight income. Operating expenses
t ttoI cost of improvements, construc-
e uoI anu equipment to a great extent.
Enu earnings does not get proper credit
loI transportation of construction mate
L.SiS' etc Inc local rates pay the bulk
9t ire eNtoTtion. hence | ask YOU to re-
uuSe rates on grain, lumber, flour posts
ana coal by distance tariff for the state
OF minnesota that include Joint trafflc
1 anu rates to and from Duluth in addl-
non TO rates to ard from Duluth in add
loh 10 rates to and from MinneanoIis
~ me roads acquired March l, 1899. bv
cIl1 mIlheapoIiS ST. Louis Railroad
"InpahE. The l22S miles Morton to Wa
I|ftoWn. was purchased from tha Wiz
eonsln, Minnesota & Pacific Railway com
Pdi!N at the agreed price Of ST. $50 932 20
winch was high price for It. and The
stock, S5.G00,000, covering 2166 miles wns
wiped out as far as the Morton end vas
!S.o o+oo,L The report for 1898 reads,
stock IS all held by r. r. Gable n
Clarke and w. II. Truesdaie as trustees
40 cash In the transaction" Also .'this
eollp4hy mas no bonds. the entire prop
tinted s fofere4 T, by a mortgage to the
me mem, nlordtg8ge given by the Chicago, Rock
island u Pacific Railway company to Sc
'T rs us Gi0iiadera and extension bonds"
80 81 ohallway company. 20.6 miles, reports
sloU'VOO received for 5000. 09O per cent
D n04 Que Feb. !, 1926, and 100000 stock.
hEu lhad the road was sold to the Mime
epohS q St. Louis Railroad companv
yHarch l. 1873; consideration not stated
~ b. AS Ine directors We're all employees of
company, who held its stock and bonds
ne sale was the usual railroad transfer
o oIe SstocK%nLolders being the five employees
company six stockholders 0'N
June 3d. $3.50 s5gS o5F q IS carried up
amount OF exaggerated charges that
s40uld not be in the cost of the road
Inc Minneapolis & ST. Louis Railroa 4
NqTii npaa ,fepoTts in 1899 the cost Of the
aIlh SID 6S New Ulm & Southwestern
was $50, 600 20.22 miles, and that the road
west OF Morton is So miles
,o5 l, 100 the minneapolis & st. Louis Rail-
LOO Itci- company report that it owned 500 500
STOCK In the Minnes.p polls, New Tim e.
southwestern Railway COMPANY the same
report SHOWS that the Minneapolis & St.
it1ou5S railroad company owned 5000 OOO
ponds of the Minneapolis, New Him e,
southwestern Railway company and 1ba :
NI MIL nadIe was $3.50 600 proving that the
minneapolis d st. Louis Railroad com
pany built that road and owned n de
faeto, II not lie lure.
The Storm Lake extension is credited
with SZ,lbl, 1l9.5l in the hands of the Cen
tral Trust Company Of New York IN he
applied 10 construction and eouinnenf of
SaId road The distance Is about 13S miles
miles ""'"' Ao@' 10
The Storm Lake extension. 50 151. 10 n
LlthFoPi New Ulm.............. 230. 900 90
Morton, Watertown ............. .. $50 932 g9
Total ........................s 81 264 cal 90
mere was some work done and soma
materials on hand June 80, 1899, so the to-
dat cost may reach &,5OO,COO. the inter
est on that sum is 4 per cent, so II
Mil take $4,000 per annum to pay #.
LnaI increased mileage ought to furnish
$oV9' 9VO worth Of traffic annually and be
HdhdIed Tor $5SO,0OD leaving $4,000 surOIus
to meet taxes and contingent If rates q
requested above is reduced 40 per cent
f Sa;GI the west and southwest ends get a
age basis. Respectfully submitted
Eric Olson.
STATE OF MINNESOTA. COUNTY OF
Eric Olson, being duly sworn on b,s
oath says that he has made the foregoing
statement by him subscribed. and that
edge, Information and belief
Subscribed and sworn to before af TsSo me
this 9th day of March, 1900
(Notaral Seal) Thomas Yam
Notary Public
Ramsey County
Yesterday was the date set for the hear
ing in the rate case against railroads on
Grating In the southwestern part OF the
state TO determine the reasona bleness of
grain tariffs. The railroad commission
formally adjourned the hearing until
April 10, at which time the case will be
argued or dismissed. The adjustment of
the matters in question is In progress.
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