The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-27

charges and per cent upon the preferred stock
A, by $619. 2o5.47. The Chicago Great Western
Railway company has outstanding. pertaining
to its SIS miles Of railway, 81, 46S, 600 of pre-
ferred stock B, and $21,315,445 of common
stock, and has never paid or earned dividend
on either.
l built the Chicago Great Western railway
superintendent the expenditure of every dollar
1t cost in first construction, and every dollar
which has been expended on 1t for improve
lnents and for rolling stock. 1t was built with
cash In hand and its improvements have been
made with cash in hand, and its rolling stock
has been purchased with cash in hand. and l
know that every dollar which has been expended
has produced dollars worth.
And while I cannot state, ofhand, the exact
number of dollars which have been expended
in producing the property, know that its net
earnings during the last six years have not
been sufficient to pay 5 per cent upon the
actual cash cost of the property, by nearly, or
quite, So, 900, 900. q ".f
1t is my contention that the indisputable
fact that the Chicago Great Western railway,
carrying freight at the freight agents rates
for six successive fat years did not earn suf-
ficient to pay its operating expenses and .
per cent interest on its actual cash cost Is
conclusive evidence that the freight agents
rates (Which are higher than the commissioners
proposed rates, but lower than my proposed
rates, say, about half way between the two
| proposed rates. were too low to be reasonable.
Commodity Rates Not Low.
| There is still another matter to be consid-
| cred. 1t is the general impression that the
| commodity rates Of the interstate schedules are
much lower than the local and state rates. and
are therefore, out Of line with the local and
| state rates.
The usual form of expression is that the
railways carry the thru business at such low
rates that they are compelled to collect I'M
reasonably high rates on the classified and the
local and state traffic. ..'
If this statement is true, the railways may
answer that all the peope-the farmers. the
all aInucn fhn tho
! live in the country and the people who live
in the cities. alike, get the benefit of it, because
the great staples of production and consumption
which are carried at these low rates are the
| basis OF their common prosperity.
! 1t has been my contention thru my whole
argument that these thru rates are too low
but have also endeavored to show that the
! local and state rates are also too low.
/ . l VIII now produce facts to prove that the
| thru rates are fairly in line, OH the basis o.
cost OF carriage, with the local and state rates
have already explained that the basis o
difference in rates is the differing relation be
tween the weight of the pay-load and the weigh
of the non-paying car.
/ 1t is well known that in the thru commod
1ty traffic the cars are much more heav
loaded than in the classified and local traffic
1t is not necessary to again enter upon tn
tedious analysis of the result of these differen
, io3d1ngsI Their fore L am going to content my
SELF at this time with stating pertinent fact
The Chicago Great Western company carrie
between its terminals-that is to say, betwee
st Paul. Minneapolis and Chicago; Kansa
: | C1ty-St. Joseph and Chicago; Kansas City-S
, Joseph and st. Paul-Minneapolis, total tor
mage of $50, 459 $50 tons miles Of freight Q
which 1t collected average rate of 81 cent
per ton per mile. while its average rate il
. entire business, long haul and short haul, We
= only Il cents per ton mile.
This pregnant fact proves conclusiyely tn,
the thru commodity rates are more than hig
> enough to be in line with the classified an
local and state rates.
Z 1t is my conclusion that the facts I ha,
u stated prove conclusively that the rates bot
interstate and state. thru and local; in Il
. territory occupied by the Chicago Great WEBSTER
{. | lines, are too low to be reasonable, becau
E they will not produce revenue enough to p.
> operating expenses and interest at the rate
: per cent on the actual cash cost of the CT
cago Great Western lines, any other whit
s can be built in the same territory.
>. That these facts show that in order to D:
!, operating expenses and per cent interest ,
q the actual cash cost of such a line, or al
line located in the territory occupied by t
: Chicago Great Western, such lines should
IL permitted to earn an average rate per ton
e y Of cent, instead of = of a cent, an
Y therefore. the rates should be raised an ave
l. age OF i of cent per ton mile. equal to
q per cent. which would bring all the rates,
terstate and state, thru and local, to the rat
- in the schedule proposed by myself.
claim that these conclusions are ann
proved by two separate and independent lin
Il of statistical facts