The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-02-17

Maintain that Passenger Traffic Does
Not Pay-Author of the. Bill Holds
that Lower Fares Would Increase
Traffic.
Interest in the anti-pass measures
pending before the legislature was
shown yesterday by the attendance at
the public hearing given by the senate
railroad committee on the Peterson bill.
Close to hundred people were crowded
into the committeeman to hear the
for and against the bill.
Six railroad attorneys appeared
against the bill, devoting, themselves
argued on the line Of two propositions.
First, that the railroads are now
handling passenger traffic at a loss, and
a reduction would be unjust.
Second, that, the amount of free trans
portation is insignificant, and to cut it
off would make very little: difference
with the railroad revenues: -
Only one of the counsel appearing
presented any definite figures to sustain
apolis 8 ST.. Louis made the principal
argument against the bill, and gave
figures for, their road. The committee
after the hearing decided to defer &C
ton until similar figures could be OBJ
tanned from, the other roads. =
The only talk in behalf Of the bill was
made by it's author, Senator F. II. Peter
son Of Moorhead. He said there were
two classes especially who should not
because the passes in their pockets
might influence their. votes on matters
pertaining to railroads; and judges Of
our courts, for their possession OF passes
cannot but arouse suspicion in the pub
lie mind and might tend to influence
decisions. .,. .. al;
-. 49,. Horton Is Posted. -.
"Isn't it a fact,'' inquired Senator
Horton, t.that the number Of people
supplied with passes will not equal 2 per
cent Of the passenger traffcq''
figures 50 I can't say,'' replied sena-
tor PETERSON.
eff it does not exceed 2 per cent"
said Senator Gjertsen, 81 see no fair
treason for 33 1-3 per cent reduction,
from 8 to 2 cents mile.'' ...
Senator Peterson then went on to ex
plain that thru special rates made, some
roads. now on the average only exceed
a rate Of cents a mile by a small frac-
ton Of a. cent; and those who purchase
2,000-mile tickets can get fiat 2-cent
rate. -
1AIt isn't fair,'' he said, "that the
man who does lot Of travelling should
be granted q. 2-cent rate in comparison
a little trip and who has to pay 3-cent
rate for his ticket.''
| Senator Peterson asserted that the
average rate charged by the Great
Northern is 2.3 cents, At the 2-cent
rate the loss last year by the reduction
would be $3.50, 161, which In comparison
with the dividends paid il the year,
$3,209,919, the loss is; insignificant.
The AVERAGE rate for passenger trans
, portation received by the. Northern Pa
cific, she. said, is the same as that of
the Great Northern. The reduction last
year would have caused a loss Of $163, :
|0l3. . The road paid 1904 dividends of
$40, 849, 999, and laid away a surplus Of
| Per Cent Of Free Transportation.
! A.. E. Clarke, general solicitor for
the Minneapolis. & St. Louis, opened the
case for the opposition to the bill. He
said as to the anti-pass feature he
would express no opinion. IF the passes
were cut off, this would relieve them Of
considerable trouble. However, they
had never considered that members OF
LILO 1cRlSldCuI0 W0I0 AuAuOuCCA w
passes, and did not expect any favor il
return. AS to the large per cent Of peo'
pie said to ride on passes, Mr.. Clarke
said this was bugaboo.. As far as their
road was concerned, in 1904 they car:
ried just 89,746 passengers free out OF
| 1;l42,6l7 carried during. the year, max
ing only 3.4 per cent. -Four years age
the legislature ordered an investigation
of passenger rates, which was under
taken by the railroad and warehouse
commission. At that inquiry, which
resulted in no reduction, 1t was devel
oped that the average rate on passen
ger traffic for the year ending. June 80
1901, was 2.44 cents mile for thu
Northwestern, 2.39 cents for the
Omaha, 2.82 for the: Eastern Minnesota
2;4e fer the Great n Northern: ! a9s fo
! the Northern Pacific, and 2.06 for tn,
.. Wisconsin Central: He said the su
preme court had recognized the heavie
cost Of local traffic, and the necessity
, of a higher rate: Three cents a mill
is only charged for local traffic. Re
( duced rates are made tor excursions
) for homeseekers, and for clergymen
There is no such thing as a uniform
rate. In making divisions with con
Meeting roads they are given the large
proportion to get the business.
: Cost of Carrying Passengers.
eff 2 cents mile is fixed: as maxi
num- said Mr.. Clarke, eve canno
earn enough to grease our wheels H
then read from the statement prepared
lby a former auditor, showing that tn
: cost Of carrying" passenger per mil
: was on the average 2.21 cents fo
, operating expenses, and IS for fxet
charges, total Of 200 cents. The aver
age passenger revenue, including mail
express, etc, was only 25l cents mile
For passenger fares only it was 20.
cents, and within the state lob cents
SO that they actually lose money Of
i their passenger business. In Mime
sofa, the average cost per passenge
. per mile was 2.70 cents. IN
d No state. had a lower maximum thai
cents except on the New York Cen
trail, which under it's charter charge
2 cents. %i*J
} Bum Explains Surplus.
G G. W. Bum appeared for the North
ern Pacific, and stated that the com
mon rate in the country was cents
mile, even in thickly settled easter
!, states The common cost of runnin
train is 81 mile. Referring to tn
surplus spoken of by Senator Peterso
: in the railroad reports, he said thi
: amount was set aside for betterments
: and usually applied for that purpos,
: While mortgages and savings bank d.
2 posits did not pay as high return a
: railroad stocks do now. they were IL