Watertown weekly leader. [volume] (Watertown, Jefferson County, Wis.) 1906-1908, 1907-02-22
PASSENGER FARES
CUT TO 2 IL CENTS.
RAILWAY COMMISSION DECIDES
CASES AGAINST NORTH WEST
ERIN, MILWAUKEE, AND OMA
HA RAILWAY SYSTEMS.

The state railway rate COMMISSION to-
day handed down an order requiring the
North-W estern, the Milwaukee u st.
Paul, and the Omaha railway systems
to reduce the rate of passenger fares
from 3 cents to 2la cents per mile.
The rate goes into effect in twenty
! days, the interim being given the rail
road companies, 50 they may make an
appeal.
No decisions were handed down in the
cases of the Burlington and the WIS
! cOnsin Central.
FOR FAMILY MILEAGE BOOKS.
The commission says: For the pur-
pose of putting the question iaS TO the
increase Of traffic that would result from
Il fiat 2-cent farel TO a practical test. we
would strongly urge 4 JOO-mlle book be
placed upon the market and sold Tor
$40, good for the purchaser and any
member of his family. for, say, period
OF one year from the date OF purchase.
The order in the milwaukee, and 81.
Paul case was issued on complaint OF
former Secretary Of State Walter l."
HOuSer and the case of the North-N est
ern, on complaint of \. e. Buell. OF Sun
Prairie. The decision is very long one,
covering 175 pages of printed matter. Ii
discusses the law the powers OF the
have induced the decision just made.
REGULATION is LAWFUL.
1t takes up first, the powers of the
Legislature, and comedies that the Legls-
| 'lature has full power to regulate rates.
1t holds, however. that regulation must
ALLOW Il fair return on money invested
! and regulation cannot be made to eX-
tend over interstate commerce. 1t is held
that the commission must ascertain the
valuation of properties of the roads, and
upon this the rate commission and tax
commission have been at work for long
time.
The law provides, it is held, that there
must be a separate report on the paSsen-
ger and freight earnings. While a divi-
sion cannot be very clearly defined, there
shall be an attempt at a practical dlyl-
sion as near as possible. The commits
sion holds that each branch, the passen-
ger and the freight. should be self-sup-
| porting and must be made so.
The commission says that if, in addi-
ton to the losses which the railroads
would suffer if a 2-cent fare were decid-
ed upon, the roads should combine to sell
communication and other tickets at less
than cents a mile, the total loss in rev.
enue would considerably exceed $1,000,-
900 year. On the Milwaukee and
North Western roads alone the loss
would be $S44,000. What the revenue
from increased travel resulting from Il
2-cent fare would amount to is largely
4 matter of speculation.
Other things the decision states fol-
low: TO be generous 10 the people of
the state at the expense of justice to
the carriers would be a species of official
brigandage that ought to hold the perpe-
traitors up to the eXecration of all hon
est men"
1t has been the policy of the commits
sion to reduce rates on freight. These
reductions mean a saving of vast sums
of money to the people of the state. 1t
believes it is right III concluding that
the passenger business must stand upon
its own bottom and it cannot pervert
its Judgment at the behests of popular
clamOr."
MUST NOT RAISE FREIGHTS.
I'VE are not concerned about what our
rights might be 10 reduce the passenger
rates to Il point where passengers were
being carried at loss, and to recOup
such loss by a species of piracy prac-
ticed upon the shippers of freight From
the standpoint of equity there is no justi-
ficatiOn for making the passenger con-
tribute toward the carrying cost of
freight. No more is there any iustifica-
ton for compelling the shipper of freight
to contribute to the cost of carrying pas
SengerS.
portant to the people than low passenger
fare. The passenger fare is brought
sharply to our attention because it is a
direct tax. The freight rate is, in real
ity, an indirect tax. When carload of
coal is shipped from Milwaukee to Mad
ison, nomnally the consignor or the con
signee pays the freight. In reality Meth
er pays il. The freight is actually paid
by the consumer of the coal. He must
use the coal. He may not want to ride,
even at cents"
The commodities which the farmer has
TO sell, the material he uses in construct
ing buildings and fences, the machinery
on his farm, the clothes he wears, the
necessaries of life, and, to a large extent,
the fuel that he consumes, pay a tribute
to the carrier none the less real. There
is no reason in asking the farmer who
has no desire to travel to contribute two
dollars in freight charges to save some
body else dollar in passenger fare.
1t is of vital Importance to manufac-
turers that they get cheap transporta-
ton for their raw material and for their
manufactured goods. A small change in
freight rates may suffice to put manu-
facturer out of business. The prosperity
of the laborer is dependent upon that of
his employer.
NORTH WESTERN DECISION.
The decision in the North W estern
case is in part as follows:
The North Western road was represented
by S. A Lynde, Lloyd Bowers and E. NJ.
Hyzer of counsel; the Omaha road by J.
V. Sheean and Thomas Wilson of counsel
and the Milwaukee & st. Paul by William
Ellis and Burton Hanson, of counsel.
The complaint in North Westerns case
challenges the reasonablenesS of the rate
of passenger fare between points in WiscOn-
sin on its lines The complaint is similar TO
that made by the same petitioner in the
proceedings against the Milwaukee & st.
April II, 1906. The petitioner did not APP
pear at The hearing. The argument in this
case was concluded July II, 1906. The ques-
ton of law and facts have been fully dis
Cussed in the decision in the Milwaukee IL
st. Paul case and the application to these
present rates lead TO the same conclusions
that were arrived at in that case.
The present net earnings on its Interstate
passenger business which the North West
ern company will be able to earn for rea-
sons stated in the Milwaukee road case,
will he less than the present net earnings
of the Milwaukee. We see no necessity for
writing an additional opinion in the case
under consideration. # considered neces-
sary or advisable to file an additional state
ment showing in detail results arrived at,
it will be done. The work IS all completed
except the labor OF copying
The reduction to 2I2 cents per mile on IN
terstate Wisconsin traffic Of the defendant
will still enable ii to earn substantially 612
per cent. on that portion of the value of its
such traffic. The reduction TO : cents per
mile would enable the company to earn
practically 80 per cent upon such value.
The calculation in this case as in that Of
the Milwaukee railway, is based on the year
1905, which in railroad parlance was one of
+-f- hoo 80