Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1910-04-14

RAILROADS SAY IT IS IMPOSSIBLE
SIOUX Falls Lawyer Is Collecting Data
to Present in States Fight At r.
Coming Session Of
Legislature.

engaged LII an earnest campaign to re-
duce the rate Of passenger fare in
that state from 8 cents to III 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 a fair profit On
their investments.
j. 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 q
lower rate Of fare could not be adiudg-
ed conhscatory, 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 necss-
slty must appear to be willing to abide
by the states action.
AS far as passenger business in the
Northwest is concerned there is not a
railroad manager OF official who would
not gladly gee all passenger trains tax
en- Off and discontinued forever under
the present conditions" said a leading
railroad official Throughout the
Northwest. where 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-
sonahle.
Railroads Seek Long Hauis.
when Minnesota roads could ask
3 cents a 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
profit
THE result is that the railroads are
seeking the longer haul and are TAX
ing homeseekers and other kindred
travellers to the Far West or to Can
ada, preferrfng to make the added
percentage of profit On the long hauls
to the Western states and to profit by
tie hiaaS., rate Of fare Ia Canada.
That is why Minnesota is now 50 little
regarded as q colonist state in the ad-
vertising OF the railroads. There has
been much complaint on this score by
Mfnnesotans, 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 reduced rate OF fare. =.
The state places a value on all prop
erty owned by the Northwestern road
in South Dakota, including an est1
mated proportion Of the train equip
ment, at So, 2s0, 115, while the railroad
company places the total value credit
ahe to South Dakota at $2s, o0o, goo.
Grounds for Basis.
IQS SGdIS = GViQcuSC. poSSA oAA ls1
method of division between the whole
system and that credited to Soutf
Dakota, and based upon its method O
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 II
South Dakota, shows the valuation as
signabIe to local passenger trafhe Il
be s4,2o7,71s; and upon the SAM
basis it shows the net income 2sS1g1
able to local passenger business to b
1858, 7s4.5S, which would be return
of S.7ss ON the Scent passenger rat
basis. At a ~ cent rate the sam
method would give: return OF 7.ll2
At 2-cent rate under the same meth
cd the return would have been 4.a5S.
The railroad commission claim ina
their showing is correct, and that Z. tn
means taken by them to- secure a
estimate for the local passenger nus'
ness in South Dakota is fair and Just
and under this showing they clair
that the railroad company could amor
to establish at least 21s-cent passen
ger rate