Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1907-02-22

The state railway rate COMMISSION To
day handed down an order requiring the
North-W estern, the Milwaukee " 81
Paul and the Omaha railway systems
to reduce the rate of passenger Iares
from cents to 211a cents per mile.
The rate goes into effect in twenty
days, the interim being given the rail-
road companies, so they may make an
appeal. =; tho
cases of the Burlington ana the
consin Central.
FOR FAMILY MILEAGE BOOKS.
The commission says: For the pur-
pose of putting the question las TO Tue
increase of traffic that would result rom
a fiat 2-cent farce to practical test we
would strongly urge a 5OO-mlle book pc
placed upon the market and sold Tor
SO, good for the purchaser ana any
member of his family, for, say, perlou,
of one year from the date OF purchase:
The order in the Milwaukee and 81:
Paul case was issued on Complaint u
former Secretary of State Walter T.
Houser and the case OF the NorIh of s snI
ern, on complaint of A. II. Buell Oh gun
Prairie. The decision is a very long one,
covering 175 pages of printed matter. II
discusses the law, the powers OF .he
commission and the arguments which
have induced the decision just MADE
REGULATION IS LAWFUL.
1t takes up, first, the powers OF the
LEGISLATURE. and comedies that the Legs
lature has full power to regulate rates.
It holds, however, that regulation must
allow a fair return on money invested
and regulation cannot be mace TO eA,
tend over interstate commerce. 1t ID neld
Iof 81
valuation of properties of the roads, ana
upon this the rate commission and tax
commission have been at work tor long
time.
The law provides, it is held, that there
must be a separate report on the passen-
ger and freight earnings. While dlVl-
sion cannot be very clearly defined, there
shall be an attempt at practical dlvl-
sion as near as possible. The commls-
sion holds that each branch, the passen-
ger and the freight, should be selt-sup-
porting and must be made so.
The commission says that If, IN add
ton to the losses which the railroads
would suffer if 2-cent fare were Decd
ed upon, the roads should combine to sell
communication and other tickets at less
than 2 cents a mile, the total loss in rev.
enue would considerably exceed 81, OOO,-
600 q year. On the Milwaukee and
northwestern roads alone the loss
would be 1914 1000. What the revenue
from increased travel resulting from a
2-cent fare would amount to is largely
a matter of speculation.
Other things the decision states, fol
low: ITO be generous to 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. It
believes it is right in concluding that
the passenger business must stand upon
it's own bottom and it cannot pervert
it's judgment at the behests of popular
clamor."
MUST NOT RAISE FREIGHTS.
eve are not concerned about what our
rights might be to reduce the passenger
rates to a point where passengers were
being carried at loss, and to recoup
such a loss by a species of piracy prac-
ticed upon the shippers of freight. From
the standpoint of equity there is no justi-
ication for making the passenger con.
tribute toward the carrying cost of
freight. No more is there any justifca-
ton for compelling the shipper of freight
to contribute to the cost of carrying pas
sengers"
"Low freight rates are vastly more i'm
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 a carload of
coal is shipped from Milwaukee to Mad
ison, nominally the consignor or the con-
signee pays the freight. In reality Meth
er pays it. 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 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 a dollar in passenger fare.
It 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 Western
case is in part as follows:
The North Western road was represented
by S. A Lynde, Lloyd Bowers and E. M.
Hyzer of counsel; the Omaha road by j.
v Sheean and Thomas Wilson of counsel,
and the Milwaukee Sc st. Paul by William
Ellis and Burton Hanson, of counsel.
The complaint in North-Western's case
challenges the reasonabIeness of the rate
of passenger fare between points in Wiscon-
Yi,,ac hn orlo inf iS ciT11i1o +n
that made by the same petitioner in the
proceedings against the Milwaukee 4 st,
Anrii II. 1906 The petitioner did not ap-
pear at the hearing. The argument in this
case was concluded July II, 1906. The ques-
jtion of law and facts have been fully dis
Icussed in the decision in the Milwaukee Il
st Paul case, and the application to these
ipresent 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,
- -, ,o+ ,iv,-1