The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1908-03-05
TWO CENT FARES
DEATH TO ROADS
MORE PASSENGERS HANDLED
BUT EXPENSES INCREASED.
REVENUES GREATLY REDUCED.
Stockholders of slowa Central and
Minneapolis G. ST. Louis Renew
Their Efforts To Knock Out
objectionable Legislation.

Des MDines, March 3---Stoclrholder
of The Iowa Central and Minneapolis
q st. Louis railroads, who last sum
mer sought 10 enjoin the directors
from putting into effect the passens
ger rates prescribed by the Iowa 2
cent fare law, yesterday filed in the
office of United States Circuit Clerk
Mason amended and supplemental
complaints making Attorney General
ii. w. Byers and the members of the
state railroad commission parties to
the suits
In the case of the Iowa Central it is
alleged that the gross earnings of the
road from July to Dec. 81. 1907, were
S9G,55282 less than they would have
been under the old rate OF cents per
mile. The gross earnings OF the Min.
neapolis & St Louis have been re-
dueed s73,295.44 for the same period
owing to the reduced rates., it is
claimed.
This is the first time any Iowa roads
have made a showing as 10 the effect
upon their business of the Iowa 2-cent
fare law. The Iowa Central, being
class A road, is prohibited from charg,
ing a higher passenger rate than 2
cents per mile. while the Minneapolis
& st. Louis, being included in class
b, is permitted to charge 21s cents
per mile. But on account of compe.
tition 2-cent rate was put in effect.
Show Decreased Earnings.
Appended to the complaints are
comparative tables showing the mum.
Der or passengers carried and the
earnings for the six months from July
] to Dec. 81, 1906. and for the same
period in 1907. The 2-cent fare law
went into effect July 4, 1907, and the
figures show that the reduced rates
caused big increase in the number
OF passengers carried. But the fig.-
ures also show a corresponding in
crease in the total cost of handling
passengers resulting in a decrease in
the total revenue from passenger bust.
ness. That part OF the table submit.
ted by the Iowa Central relating TO
passenger business Is as follows:
1907 1906. 4
No passengers
carried d. sss,os7 8Os,416|
Total passenger
revenue, ~ s22Os5s.s4 1924 ,os5.s5
Total cost pas. EH MI ,.
senger bus. 22s,4SlSs 2ls,742.Sl
Net cost passen-
ger bus, 214,507.30 2O9, 714S5
IA. a. ST. L. Table.
The statement submitted 10y the
Minneapolis & St. Louis is as follows:
1907 1906.
yNol passengers
carried -. 26O.126 219,573
Total passenger
revenue ~. .s165. 996.17 s1Sl, 1855
Total cost pas.
songer bus. 259,444.l5 246,S40.S7
Net cost pas.
3 senger bus. 249,SS4.7S 223. 54T.45
, On this showing of a reduction in
passenger earnings the complaining
stockholders hope to secure an in
junction restraining the directors
from continuing the low rates in effect
and, enioinmg the attorney general
and state railroad commission from
eompellnss the two roads to comply
with the law. lit IS alleged that if
such an Injunction is not granted the
revenues will not be sufficient to pay
expenses and there will be no funds
from which to pay dividends and
improvements, And the roads may
not even be able to pay their taxes,
il Is alleged. The eomplainants fur
Their claim that enforcement of the
new rates will result in serious loss and
damage to the roads and possible in
solyency and bankruptcy. They pray
for . temporary injunction until a |
hearing can be had en- the appliea- |
tion for permanent injunction.