The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-02-17
SAYS D. S.S.& A.
WOULD BE LOSER
REPRESENTATIVE OF RAILROAD
CLAIMS COMPANY WOULD
LOSE MONEY If FARES
ARE REDUCED.

The Duluth. South Shore and At
lantic railroad is practically the only
road in the upper peninsula which
would be seriously affected by the
adoption Of the bill now pending in
the state legislature, providing for a
two cent mile fare for all roads in
northern Michigan whose earning ca
pacity is more then 81. 200 per mile. T..
W. MacPherran OF Marquette, repre-
senting the South Shore road appear
ed before the railroad commits sion one
evening this week. arguing against the
proposed reduction, stating that the
road would be placed away below a
paying basis If the bill is adopted. He
admitted. however, that the road
would gladly accept reduction to a
Pa cent mile basis
Senators James and Miller and Reps.
Symonds. Happier and Lucas took an
| active part in the argument for lower
fares Senator James brought out
the fact that the upper peninsula lines
were really capitalized by the state of
should not expect to reap profit on
its full valuation. He showed that
when the D., :. :. & A. was built i'm
two separate lines and later consolid-
ated, the state presented il with p
G13,O93 acres of land-more than one
fourth of the acreage of the upper
peninsula. In addition, this land was
exempted from any tax for 16 years.
Senator James contended that the
bonus was worth more than the rail-
road itself.
Mr.. McPherran argued i'm answer
that the present organization, which
he represents, never got the land.
saying the original promoters. the
McMillans and Palmers, sold the rail-
road but kept the land bonus as vel
vet" He said the present company
has only $1,000 acres of land gained
from other sources than the state. He
declared that the gross earnings of
the company arc only S1,96S a mile.
which the present bill proposes to cut
by one-third, while the actual cost
Of service is $1,000 a mile, as shown
by the report of their commissioners.
Are you people entirely unconnect-
ed with any other railroad?" Senator
Miller asked.
we are entirely separate: 81 per
cent of our stock is owned by the
Canadian Pacific. but We are left to
paddle our own canoe, as is shown by
the sharp competition with the 500
line, the other foster child of the Ca
madam Pacific" said McPherran.
isn't it true that you give a two
cent rate in Wisconsin and MINNESOTA,
while you charge three cents in Mich
iganY asked Representative Happier.
That is true, we give a two-cent
fare in Minnesota and Wisconsin be-
cause we have TO, but we have lost
money on it,"
Senator James produced 25 tele-
grams from his constituents, all urg-
ing that the thrce-cent rate be pre-
served. He declared that all % peo-
pie lived i'm the same block. and to
illustrate that the kilograms were not
voluntary. he showed that they were
all worded exactly alike.
General Manager Harris, of the
'Munising. Lake Superior & Ishpeming
and Marquette & South Eastern lines,
and Superintendent Fales of the Cop
per Range, appeared to argue against
the law regulating the number of men
to compose train crew. as fixed i'm
another bill before the house. They
declared that in the mixed trains OPP
Grated in the north the requirements is
excessive. Not any of these lines would
come under the two-cent fare propos-
al, not having n gross earning power
above $1,000 n mile.