River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1902-01-16

NOTTneTn PG4-IIIC y,
an outlet to Che best markets for the
grain, live stock and lumber. Of the
northern lines and to increase the vol
ume of our traffic to the end that we
might at all times be able to estab-
lish the lowest rates and most fayoraple
conditions under which the tTafnc must
rails, reaches Chicago, Peoria, Rock Isl
and, Davenport, Quincy, Alton, Hannl-
bal, St. Louis, st. Joseph, Kansas Ivy ,
Des Moines, Omaha and Denver, and thus
connects with the main arteries OF traI1c
of the whole country.
What Burlington Purchase Means.
Assuming that the line of the Burling-
ton had not been constructed and that
the Great Northern and Northern Pac1hc
jointly had raised the money and were
engaged in the construction of 1t, Would
there be anything to meet the dlsap.
prevail of the states traversed by the
line of the Great Northern and Northern
Pacific? On the contrary, would not sucn
q course have been hailed with aproVdi
as a means Of opening up markets lot
northwestern produce and of reachlng
markets in the south and southwest,
and of securing business, increasing the
volume of traffic of the Great Northern
and Northern Pacific, thus making re-
duction Of rates and adding. to the gen
eral prosperity of the northwest! IN
stead of building the Burlington sys-
tenn, or line Of railway alongside OF It,
the Great Northern and Northern Paclnc
purchased the capital stock of a line al
ready constructed. Instead of issuing
stock or bonds, for, the purpose OF rals ans
ing money to build a line reaching the
same country, bonds were issued to pur-
chase the stock Of a constructed line.
1.-THE capital stock of railway compan,,
les, as of other corporations, will be neld
by somebody and somewhere. Railway
companies, as carriers, are subject TO
supervision and control by the PUBLIC Tor
the purpose OF insuring the perform
ance of their obligations to the publc.
The capital employed in railway con-
struction is made public. Railroads MAKE
liz 1icJon toe
charged for transportation the only thlnS
they have to sell, and must report the
amount they receive for what they sen
and what has been done with 1t. courts
are open for the purpose of determining
whether railway companies, as carriers
observe their obligation to the pupllc.
1.-THE question of the reasonableneSS OF
rates and service does not depend upon
whether one man owns the capital stock
of a railway or anOther-whether the
capital stock is owned by ten men or
1000, by persons or by corporations. Inc
capital stock of a railway company is
personal property, to be sold, transferreo
may purchase and hold all that he mas
means to buy and pay for. Inc capiiIal
stock of the Northern Pacific and the
Great Northern will be held by some
body, persons or corporations, if not by
the present owners, by other owners.
Suppose by death of the present own
majority of it find it's way into the hands
of those interested in competing mes ne.
serving the country to the north or the the
south of the territory served by the
Great Northern and the Northern PACING,
would the people along the lines OF those
railways be benefited? If the present
two companies could be compelled to sell
it or dispose of it on the market, WOuld
it fall into hands more interested in the
development and prosperity of the nortn1
west than it's present owners? HOW is II
that the lines have been extended ana
improved? What brought about the
too of hn
two companies? What has enabled them
to serve the people along the llnes as
they have been served? Plainly the vii
lingness and ability of those controlling
large interests in the stock OF the COM
panies who found it to their advantage
to build up the lines and promote the
settlement of the territory tributary TO
it, and who will continue 1t.
The True Test of Competition.
"The great freight reproducing area Of
the country is along the Atlantic sea-
board and in the territory south Of Lake
Erie. The freight that is the product
of all the manufacturing enterprises
which find a market west of the Missis-
sippi river to a large extent must pass
through the lakes to Duluth and to st.
Paul and Minneapolis, and into the ter
ritory between those cities and the Pa
cific or around Lake Michigan and at
that point going largely to southwestern
so far as the public along the lines
served by the Great Northern and North
ern Pacific is concerned, is to be con
sidered in the light of a great competi-
tive condition between the territory
served by the Northern lines and those
of the South and West; between lines
whose interest it is to secure traffic as
against the Northern lines, to populate
ard build up the country in which the
people along the northern lines have no
special immediate interest.
"a few years ago the transportation on
Lake Superior was mainly in the hands
of what was known as the Lake superior
by steamers operated by Eastern trunk
lines, who also operated boats running
from Chicago, and whenever we reduced
the rates from the wheat fields to Lake
Superior a corresponding advance in the
water rate was made to offset our re-
duction on land and equaliZe the rate by
Lake Superior and by chicago. we punt
six steel steamers, which at that time
were the largest on the lakes. The first
cargo we landed at Buffalo we We're told
from from Buffalo I to New w R York; which was
practically the same as the through rate
from Duluth to New York. We found
was to break up the Transit company,
and break down the rates on the lakes to
a reasonable figure.
Later the elevator charges at the head
of Lake Superior were ~ cents per
bushel, and at Buffalo IA cents per
bushel with an additional charge for
vators at both places, the effect of which
has been to reduce the rates to II cent
both in Buffalo and at the head OF Lake
Superior; in other words, where the grain
paid pa cents per bushel it is now paying
1 cent. The difference to the Northwest
on 20OOO0,OOO bushels of wheat is $4,000 600
per year The proportion of this we
handle through our elevators is probably
Is per cent. We did not build the ele-
vators for the purpose of grinding the
faces off the farmers of the Northwest,
but in order that they might have fair
play and that their grain might go for
ward without undue and unnecessary
taxation. I say this to show you that
we are at all times mindful of everything
that will add to your material prosperity.
Rates Cut in Two in Twenty Years.
''In 1880 the average rates on grain
from the Red River valley to Duluth
were from % to So cents per hundred;
today they are from IA to 16 cents per
hundred or about one-half the rates of
twenty years ago. The rates on coal
and lumber have been reduced in about
the same proportion.
reductions Of rates in transportation
must be made with the greatest care in
order to avoid unfair discrimination
against persons or localities. A reduc-
ton in the rates of the whole country of
10 cents for moving a ton of freight 100
miles would make a reduction of over
$3.50, 000, 900 on the traffic handled during
the past year, and would wipe out a
large part of the income of the railrocx1