Omaha daily bee., 1907-02-13
ROADS KICK ON Two-cENT FARE
Representative Insist the Rate IL
Not Compensatory on Nebraska
Lines.
CFrom a star Corresrondentl }


LINCOLN, Feb. i2-CSpecial Telegram.)-
The railroads had their innings before the
house committee on railroads tonight on
the proposed 2-cent passenger rate bill, and
of the four corporations represented. each
argued that the rate would not be COM
pensatory and each said not only would
such a rate be detrimental to the revenues
OF the roads, but harmful to the state in
general, while p. s. Eusts, passenger traf-
fic manager OF the Burlington. frankly told
the committee the first step his road would
take should the bill become a law would
be a legal move to test the law in the
courts.
Those who addressed the committee be-
sides Mr.. Eustis were Gerrit Fort, assistant
general passenger agent of the Union Pa
cific; w. b. Kniskern, passenger trafiic
manager of the Northwestern, and Frank
Nay, general auditor of the Rock Island.
Each speaker said the passenger traffic
on his road did not pay. This was true.
each said, especially on the business done
In the state, while the largest revenues
derived from passenger traffic came from
the interstate business, which, of course,
would be greatly reduced should the bill
be passed. Such a law would reduce the
number of excursions at reduced rates
during the year. each said. Each was posi-
tive passenger rates were fixed according
to the density of population and figures
were quoted to show this was the reason
the rates In the east could be lower than
in Nebraska
Gerrit Fort made It clear 70 the COM
mittee the r. te is fixed by the short line,
and to make the rate cents would be
TO shut out the long lines in competition
or compel the passengers to pay more
fare than they are now paying on the long
lines At this time he said rates in Ne
braska on tho Union Pacific were In many
instances below cents. The rate per
mile to Lincoln from Omaha via the Union
Pacific now, he said. is 1.7s cents, and these
ninety-five miles enter into the rates fixed
for south Of Lincoln. With the 2-cent rate
in effect the ninety-five miles would yield
but l15 cents per mile. From Lincoln to
Columbus, ia miles. the rate would barely
clear 1 cent per mile. The business to
points north of Columbus now, he said,
is handled for this distance at a little over
1% cents a mile. From Central City to
St. Paul the distance is forty-one miles
and the rate, he said is 0l IS cents per
mile. II he meets the short line rate. he
said, on the basis OF 2 cents per mile the
rate would be 81 cents and the earnings
.0i p cents a mile. Mr.. Fort, as did others,
contended traved would not be materially
increased by a reduction In fares, because
there was no pleasure resorts for Ne
braskans to visit In the state and most
of the travel was on business. while II
probably would result in cutting out spe-
cial rates to special functions. such as the
state fair. Branch lines. he said, may run
just often enough to meet the actual neces-
sity Of travel, where now they dun lailyi.
All the other speakers talked along the
same line and each produced figures 10
show the basis OF his objection.
During a running debate AT the close
! Of the talks IN which Cone of Saunders
asked some questions. Mr. Epstis admitted
/ the Burlington road had a value for taxa
ton purposes and that II was lower than
( the value for commercial purposes or for
/ fixing rates. He justified his statement by
saying everyone else did the same thing
in returning property to the assessors.