The Minneapolis journal., 1902-07-15
Passenger Rate Inquiry Befo
Railroad Commission.
OF THE NJ. & ST. l..
Larger Roads say 1t Is Impossible
..s.'-' to Get at the, Facts
~ Asked For.

Ine minneapolis & st. Louis and the
Burlington, Cedar Rapids & Northern are
the only Minnesota roads that have COM
piled with the directions of the railroad
and warehouse commission in the passen-
ger rate investigation. The roads were
asked to state what per cent of their op
Grating expenses should be charged to
passenger business and what per cent to
freight. 80 The Minneapolis & St. Louis
filed statement showing that it's passen-
ger business was $3.50 per cent of the
whole. The Burlington, Cedar Rapids &
Northern finds 41.66 per cent the proper
basis -..-- +. .~-
The other roads have stated that it was
impossible to make the division, and have
filed no statements. ~
The hearing opened at 10 a. m. All
the roads were represented. M. D. Grov-
er appearing for the Great Northern, was
asked by Chairman Mills why he had not
furnished the desired Information :: Mr.
Grover replied that 1t was impossible: No
distribution was made on the books of the
company. There were means of judging
to an extent as to- the proper division for,
the entire system but not for Minnesota
alone. Chairman Mills asked how the
passenger rate was determined on. s.. r.
Mr.. Grover replied that this was done
by long established custom, by competi-
tion, and in many cases by law, ,....
A. e. Clark, for the M. & st. L., then
presented the company's statement and
made this argument against the proposed
reduction. Mr., Clark presented figures
compiled by Frank May, auditor of the
road, They were prepared. for the use
OF the officers before there was any talk
Of passenger rate Investigation. Mr.
Clark emphasized that the figures could
only be approximate, being based largely
on arbitrary divisions between freight
and passenger business. -. ~. p.
r." M. & st. L. Figures. -:--
Mr.. Mays statement showed that for
the year ending. June so, 1900, the aver
age cost Of carrying one passenger one
mile was 2.99 cents, Of which 2.21 cents
was operating expenses, and .7s cents
each passenger mile was Est cents. but
within Minnesota, 1t was only 1.94 cents
This included revenue from mails anS ex-T
press business, which; in Mr. Clark's opin-
ion should not be counted in. ~ .
For the year ending June 80, 1901, the
average cost per passenger mile within
Minnesota was 2.71 cents, of which 2.14
cents came from operating expenses and
Sc cents from fixed charges. The revenue
including. mails, express, etc, was 2.31
cents, but from carrying passengers only
1t was 1913 cents. This showed plainly
that the road lost money. The best pay
ing business, that of local traffic, required
carrying q passenger 100 miles to make
a profit of one cent. 5@-
Mr.. Clark thought larger roads would
make better showing, but that none
would more than pay expenses He pre-
sented figures for all Minnesota roads,
compiled from the reports made to the
commission. These showed that the ac-
tual passenger revenue OF Minnesota
roads, excluding iron ore and lumber
roads, was much less than 8 cents, In
fact, 1888 cents per passenger mile, while
the operating expenses per passenger mile
were 1854 cents. j, a..
A 8 cent rate, Mr. Clark explained,
could only be collected on business that
was local and nom competitive. This was
a greater expense, and should bring more
money. Militia are carried for cent,
homeseekers and ministers at half fare
and mileage passengers at 2 cents.
No state in the union had maximum
rate for all roads Of less than cents, and
in no state as sparsely settled as Mime
sofa did the local rate fall below 8
cents.
The Burden of Freight.
Mr. Clark answered the proposition that
has been advanced that If passenger bus
mess is carried at a 1oss,. the burden
therefore falls on freight, and freight
rates are too high. He said it was I'M
possible to regulate passenger rates ex
cept by competitfon. What is fair for
one road Is not for another, and con-
ditions change. The maximum rate is
only collected on local business. 1t would
not be fair to railroads to reduce the 1e-.
gal rate because one road was making too
much profit; neither would it be fair to-
the public to raise the rate because one
road was losing money. Competition must.
regulate In conclusion Mr.. Clark said
he believed the comnai ion would be sat-
isfied that present passenger rates are
none too high.
The hearing was adjourned until 2.
500 Roads Statement.
A. H. Bright, for the 500 line, said he
had statement be would file later, show
ing that his road made small profit
from passenger business. The receipts
per passenger mile In Minnesota arc
slightly over Q cents, and expense
most the same, but trifie less
Several OF the railroad attorneys pres
ant stated openly that they did not fur
ntsh the figures because they did not pro-3
pose to be asput in a hole" at some later