The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-06-06
RAILROADS.
RATESTHEN and NOW
"A Twenty Years Comparison Shows
the Oft Cited Downward
Tendency.
While Rates Have Decreased, Eco
nomic Operation Has Increased
Train Earnings.

In Its current issue the commercial
West makes an elaborate comparison Of
Great Northern freight rates from 1882
to 1902. Emphasis is given to the down
ward tendency IN that period. the man
agement thus sharing profits with Its
patrons. The article says:
The report of the Railroad and Ware
house Commission of Minnesota for the
year 1882 gives In full the report Of the
old Manitoba Railroad company for the
fiscal year ending June 80, 1882. In that
year the Manitoba company-now owned
w the Great Northern Raiway-had only
J1,007.S miles of road, of which 1885 was
in Minnesota. The only lines in North
Dakota were from Fargo to Grand Forks,
Grand Forks to Grafton, Grand Forks to
Larimore, Breckenridge to Portland, and
iRipon to Hope. The freight revenue per
ton per mile was ISIS cents, and the Mani
toba company hauled total OF l.OO7, 536
tons of freight. Ten years later, IN 1892.
the freight revenue had been reduced to
,1.214 cents per ton per mile or more than
one-half. In 1902, or twenty years later,
tine freight revenue per ton per mile had
been reduced to 1859 cent, or little more
than one-third OF what it was in 1882, and
the tonnage handled had increased to
10, 237,3 1868 tons, or over thirteen times.
Probably no one will claim that rail-
road could do business as cheaply In 1902
as in 1882. Wages were great deal more
in 1902, and yet, by increasing the volume
|of business thirteen times the Manitoba
land it's succeeding Great Northern man
fagement under James J. Hill reduced the
rate two-thirds. Had the Great Northern
received the same rate In 1902 as the par
ient did in 1882, the road would have col
lected $50, 1925, $500, while it only collected
as freight earnings that year $27, 4os, OF. %
Ia saving Of the enormous sum of $62,-
500. 65S.s7.
ITO bring about this great increase In
business, it became necessary for the Great
Northern to build new lines to develop
traffic In 1882 the only thru business the
Great Northern had was via the Canadian
Pacific at ST. Vincent; otherwise the traf-
1c was purely local. In 1892 the Great
Northern had 3.417.Ss miles of road, Of
which 1929 was in Minnesota. In 1909
the Great Northern operated directly
5,336.38 miles of road, of which !, 955.2S was
in Minnesota, and in addition owned 512.72
miles of road, which materially increased
THE earnings of the lines the company
operated.
sa The Taxation Figures.
'The figures pertaining to railroad
taxation tell a similar story Of develop
ment in the interest Of the people. In
1882 the Manitoba's tax bill was $685.
O01.s4; in 1902 this tax had grown to
1883, 693.97
''In 1882 Minnesota's proportion Of the
Manitoba earnings was $780, 1883, on
which the tax of per cent amounted to
$1s3, O65.4O. -
For the year ending June 80, 1892, the
Great Northern paid the state OF Mime
sofa 1912, 1858. 63 as tax, and for the year
ending June 80, 1902, 1t paid as tax $487,-
450s5; an increase over 1882 Of 1904 1856,
and the increase is growing yearly.
1.-The benefit to the state is even great
er than these figures Indicate. Note what
the state collects from interstate traffic,
and how the development Of that traffic
has helped the state and everybody in it
who pays taxes. The report Of the rail-
road commission of 1882 states that the
total revenue Of Minnesota stations that
year was 1929, 43305, which was purely
local business. The tax on that at per
cent would be $685. 5000; therefore in 1882
Minnesota, received $24, 68241 as q tax on
Interstate traffic Wills. -.-.s
"In 1902 the earnings from traffic local
to Minnesota was $6,619. 1861 and the
tax at per cent was S19s,575.07. There
fore of the total tax Of s4S7, 45O.s5 paid the
state in 1902 by the Great Northern,
Z $288,875.S came from interstate traffic.
''Ths shows the remarkable result that
in twenty years the Great Northern built
1920 miles Of railroad in the state and
reduced the local rates so that the earn
ings from all classes of local traffic In
Minnesota was but 81, $40, 900 more in 1902
than in 1882, while the taxes on interstate
traffic was 1854 900 more In 1902 than in
1882, or twelve times as great
Train Earnings Increase.
4 AS to train earnings, the article says:
"The report of the Minnesota commits.
sion for 1882 throws light on this propo.
stion It shows that the Manitoba earned
$2.7O per train mile, and that the cost O,
operation was $1.30 per train mile, leaving