Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1907-04-27
suNDBERd COMMITTEE REPORT
Stock of Some Railroads is Said
to be s'All Water

to b. ''All Water"
Railroad property in Minnesota is
valued at $215,oo0,0 900 by the Sund-
berg investigating committee, which
returned its report to the Minnesota
state senate Monday. This is ap'
proximately 1877 900 mile. The prop
erty is capitalized to the extent OF
about $500, 100000 or $4,000 mile on
an average. The net earnings accord
ing to the committees findings, aver
aged over $4,000 mile last year, or IL
per cent on the committees valu-
alton.
The committee which consists of
Senators Sundberg, eastman, Canes
torp, Nelson and Sageng, recommends
that COMMITTEE or commission of
three be empowered to investigate
generally into the capitalization of the
railroads of Minnesota and the rela-
ton the stocks and bonds bear to the
value thereof and the enactment of
such appropriate legislation as the
conditions disclosed demand" The
text of the report was prepared by
James Manahan, who acted as attor-
ney for the commission and the testi-
mony taken covers 800 typewriter
pages.
The report says that to arrive at the
cost of reproducing and equipping the
different lines in their present condi-
ton, the committee considered:
"First, the original cost of construc-
ton; second, the cost of improve
ments, betterments and equipment
added since; third, the cost and char
acter of the lines recently built; fourth
the expense of operating and the
earnings under existing rates; fifth,
the stock and bonds and the value
and water thereof: sixth, the geo.
graphy of the line end the judgement
displayed in it's location.
A large section of the report is de-
voted to drastic review of the Chi
cago Great Western. This road, it
says, 'was built by A. B. Stickney,
who raised the funds by acquiring, or
ganizing, reorganizing and Hartman
izing divers and sundry corporations
of Minnesota, Iowa and Illinois, The
capital stock and funded debt of the
road is $143,668 per mile and the COM
m ttee figures it valued at about one
fifth that, or $4,000 mile. In its last
report the company certifies that line
and equipment cost $9S,011 per mile
and in detail of its statement there is
an item, purchase constructed road
$66, 99463 per mile.'' This would mean
$4,000, 900 for the whole line. In 1891
there was reported for purchase of
constructed road $6,313, 1882" 1t
was then S15 miles long. Fifteen
years later" says the committee,
s'this elastic item had been stretched
to 800, 594 ,344.2s, but the whole line
had shrunk sixty miles in length. 1t
had been watered too much"
The line from Zumbrota to Roch-
ester, according to the report, cost
$26,66s per mile and this was declared
by company officials to be first class
and as good as any other. A new
Illinois Central line from Albert Lea
to Mankota cost $40, 4s3.34 per mile,
according to the testimony of the man
who built it and 105 miles of the Great
Western system was sold in 102 for
S1,247 900, or 81 200 a mile. The com
mittee also finds that in figuring cost
the road has not allowed for deprecia
ton in equipment, some of which is
cover a quarter of century old and
long since in the scrap pie, according
to the testimony of Mr.. Hill and other
experts" In the past seven years the
company has earned on each mile OF
road $50, 1861, with a profit of S15,-
1868 mile, or 50, 100 each year. This
is 1 y per cent on the capital stock on
funded debt, about 1-5 per cent on
the book value claimed by the com
pany and approximately per cent on
a valuation of $50, 200 mile.
The Wisconsin, Minnesota & Pacific