Omaha daily bee., 1905-06-18

from $50 to 1854, or only 9S per cent. More
over, the per capita value of Nebraska's
manufactured products increased from sSS
to $135, or SO per cent, while Iowa's only ad-
vanced from $65 to $74 or less than IA per
cent.
This does not look as If there was much
agricultural or Industrial stagnation in Ne
braska superinduced by adverse railway
rates or any other cause. But as to manu-
featuring interests, 1t may we'll give rise to
the question, whats the matter with
Iowa?" To which the answer of a disln-
terested student might well be, TOO much
state-made railway rates"
Changes I'm Classification.
Mr. Rosewater says that "the changes in
classification made within the past five
years have actually increased the local rail-
road rates in Nebraska above what they
were in the $685." and that this is where
the shoe pinches."
/ don't know where Mr.. Rosewater can
find any authority for this sweeping mis-
statement. Table civ, of part Ii, of the re-
view of Railways in the United States in
1902" issued by the Interstate Commerce
commission In 1903 gives the local freight
| rates charged between Omaha and various
shipping points in Nebraska for distances
| from 46 UP to 40 miles, and in not a single
| instance does a change In the classification
| rate mark anything but a decline. some-
times amounting to so per cent and so
| great has been the reduction generally that
nothing short OF jumping an article over
several classes would increase the local
rate anywhere near what 1t was in the 80 s.
| OF course there may be sporadic cases
where change of classification may be
~ AIn
pounds for 47O miles in 1902 to second-class
at 80 cents for the same distance, or cent
higher than the ffth-class rate was in 1886
But such cases must be nearly as rare as
white blackbirds. and do not believe Mr.
Rosewater would base general indictment
Of railway rates on such exceptional in.
stances.
The figures / have just given mark the
decline of rates on fifth-class freight be-
tween Omaha and Chadron Neb., since 1888
and are typical OF the drop in rate:
throughout the classification-that is, rela
lively from 9s to 62 cents per 100 pounds fol
40 miles,
Question of Net Earnings.
1 regret that it is impractical to follow
Mr. Rosewater in his comparisons OF tn,
net earnings of the railways in Nebraska
and Iowa for 1904, because his figures either
as to mileage or earnings do not correspond
with anything find in the official reports
But unless he can show that the net earn
ings of the railways in Nebraska yield al
unreasonable profit on the railway invest
ment that carries the traffic, and also i'm
poses an unreasonable and onerous burdel
on Nebraska business, l do not see wha
the difference in net earnings per mile be
tween Iowa and Nebraska railways has L
do with railway regulation. 1t is afrecte
by a variety OF causes. among whicl
density and nature of the traffic and cos
OF operation may be mentioned. Group vi
in which Illinois and Iowa are located
show gross earnings OF $3.50 per mile t
only 81, sOl for group vii, in which Nebrask
is located; and yet so much heavier is tn
cost OF operation in the former group tina
the net income from operation for the tw
groups in 1903 were s2927 and 81 .965 per mil
respectively.
1t is a noteworthy fact that while NJ
Rosewater. speaking for Nebraska make
envious comparisons between the net earn
ings OF the railways in his state and lows
Governor Cummins, speaking for the shiI
pers OF Iowa, makes a great ado over tn
alleged special rates and priviligese ex
J tended by the railways TO the shippers Q
! Nebraska. The fact Is that the shippers G
each state are not only Jealous of those c
every other state, but are insistent on Sc
curing some special advantage for them
) selves. II local or state clamor were pei
mitted to fix railway charges TO suit locS
: desires. the whole fabric OF American raj
way rates would be nibbled away TO III
vanishing point. This competition or emu
. lation between localities and states ma
always be relied on TO keep railway charge
} within the bounds OF reason. especlall
Q when ths Interstate Commerce eoGumissio