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

From this comparison, It will be seen that
if the schedule proposed by the Minnesota COM
mission were extended, and put In force from
St. Paul to the Pacific coast it would reduce
class, and about 49, on class ''E,'' and on all
the intermediate classes proportionately.
The comparison also shows that the Mime
sofa commissions proposed schedule could be
raised 20 per cent, which think is about what
they should be raised, and still permit. traffic
to be moved from st. Paul to the Pacific coast
at less rates than now collected.
Now I want to ask the commissioners If
| they believe that the rates between st. Paul
and the Pacific coast ought to be reduced from
27.7 per cent to 4e.2 per cent or an average
| of say 3S per cent, as their proposed schedule
would reduce them, if 1T was put into effect
| over this whole vast territory.
| Does the commission realize what such re-
| auctions would mean? Let me show you what
| such reductions would mean.
| During the pancs of 1873 and 1893 the earn
| ings Of the railways fell off to such an extent
that, probably, IS per cent Of the railway
mileage of the United States passed under the
| have prepared diagram Of the earnings of
all the railways of this country, which shows
at a glance the decrease Of earnings in those
| two great panics.
Gives Warning.
| This diagram shows that the railway earn
ings reached their highest! point, $500, 600 600
in the year 1873 Then they fell off year by
year until they reached their lowest point
$473 O0O 600, in the year 1877. This decrease was
1906 per cent.
Then, in the panic period of 1893, curiously
enough these earnings reached their highest
point, $1,2o7 900 ooO-in the year 1903, just
twenty years from 1873. Then they made one
drop to the lowest point $1,oe7 900 900, in 1894
This decrease lie per cent, and agar
placed approximately. IS per cent Of the railroad
mileage of the United States in the hands OF
receivers. s-.. ..s.r- ..-
| Thus it will be seen that the. difference be
tween rate prosperity and bankruptcy for rail
way companies is loss Of only 10 to IL pei
cent Of their earnings 81.
With these facts before you, do you dare t,
take the responsibility by putting into effec
your proposed schedule of saying that it il
your deliberate judgment that the rates Of al
4 railways between the Mississippi river and tn
Pacific coast should be reduced say an averag
of IS per cent? ~. Sd. -.
, Basis of Rates. T.. .
The consideration Of the fundamental prin
ciples of making schedule Of rates shows con
| clusively that the proper construction Of such
schedule requires that to the two terminal eX
penses there shall be added constant quar
; distance of 100 to 200 miles, representing tn
compensation for the straightaway haul whe
carried way freight trains and the expense
/. incident to delivering and receiving at locs
( stations, then smaller constant quantity pc
: mile ad infnitum representing the smaller con
y pensation for the straightaway haul thr
! freight trains. And that.a proper percentage re
lation shall be established between the differer
classes.
t Having ascertained these fundamental prime
PIES the process of making the millions of IL
: dividual rates is simplifed, because 1t is 4
:, longer necessary to consider the reasonablenes
= of each one Of such rates separately, but 1t
!, only necessary to consider the reasonableness
e the three factors upon which the schedule
/, founded, namely:
u First-A reasonable charge to cover the tw
terminal expenses for frst-class rates as bas
line.
4 Second-A reasonable constant quantity to
a added for each straightaway mile hauled
thru freight trains, and a. reasonable consta1
quantity to be added for each straightaway mi
! necessarily hauled on way freight trains, al
: the distance the way freight train rates sbou
d continue.
: Third-A reasonable percentage relation
tween the rates of the different classes
When the reasonableness Of these three ia