Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1910-04-15
SOUTH DAKOTA
TO LOWER FARES
THREE-CENT RATE IN EFFECT,
BUT A TWo.cENT SCHEDULE
IS SOUGHT.
RAILROADS SAY IT IS IMPOSSIBLE
Sioux Falls Lawyer Is Collecting Data
to Present in States Fight At
Coming Session Of
Legislature.
RAILROADS SAY IT is IMPOSSIBLE

st. Paul, April 11.-South Dakota is
engaged in an earnest campaign to re-
duce the rate of passenger fare In
that state from cents to ~ or 2
cents and through an appointee of
the federal court is collecting exhaus-
tive data to show that the railroads
entering the state could be operated
within it on the basis Of business re-
ceived at lesser rate than the pres
ent and still receive fair profit on
their investments.
]. H. Gates of Sioux Falls is taking
the testimony as special master and
while he is travelling between Chicago
the Twin Cities and South Dakota get
ting evidence tending to show that a
lower rate Of fare could not be adjudg-
ed confiscatory, the railroads are sit
ting by, in sense, resigned to the
inevitable. Not that the railroads are
not going to make fight, but they see
the trend in the direction Of state die
tation of passenger rates and OF neces-
sity must appear to be willing to abide
by the states action.
CAS- far as passenger business IN the
Northwest is concerned there Is not
railroad manager of official who would
not gladly see all passenger trains TAX
en- off and discontinued forever under
the present conditions" said leading
railroad official. Throughout the
Northwest, where 2 cent passenger
rates prevail, passenger trains are run
at loss and the railroads must look
to the freight business to pay d1vi-
dends to their stockholders. Under
the 3-cent-a mile rate the profit on
passenger business was fair and rea'
eonable.
Railroads Seek Long HauIs.
when Minnesota roads could ask
cents mile for general traffic Min
nesota people saw colonists, landseek-
ers, homesteaders and excursion rates
in vogue, but they have seen none
since the 2-cent rate was established.
The reason is that the railroads are
mercantile institutions and are run for
profit.
"The result is that the railroads are
seeking the longer haul and are TAX
travellers to the Far West or to Can
ada, preferring to make the added
percentage of profit on the long hauls
to the Western states and to profit by
the higher rate Of fare In Canada.
That is why Minnesota is now SO little
REGARDED as colonist state In the ad-
vertising of the railroads. There has
been much complaint on this score by
Minnesotans, but that is the reason
for this condition.
According to the figures gathered
by Mr.. Gates for South Dakota with
theh Northwestern as criterion, the
roads could earn reasonable profit
at a reduced rate of fare.
The state places value on all prop
erty owned by the Northwestern road
in South Dakota, including an esti-
mated proportion of the train equip
ment. at $22,26O,115, while the railroad
company places the total value credit
able to South Dakota at s29,0O0,0O0.
Grounds for easis.
The states evidence, based on its
method of division between the whole
system and that credited to South
Dakota, and based upon its method OF
division of freight and passenger bust
ness in South Dakota, and based upon
it's method of division between inter-
state and local passenger business in
South Dakota, shows the valuation as
signable to local passenger traffic to
be $4,207,71S; and upon the same
basis it shows the net income assign
able to local passenger business to be
1859, 7s4.5S, which would be a return
of 8.786 on the Scent passenger rate
basis. At 2h-cent rate the same
method would give return of ZIP.
At 2cent rate under the same meth
cd the return would have been 4.53s
The railroad commission claim that
their showing is correct, and that the
means taken by them to secure an
estimate for the local passenger bust
ness in South Dakota is fair and just,
and under this showing they claim
that the railroad company could afford
IN establish at least a 21h-cent DaSSen.