Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1913-05-09
The Relation Of the Producer and the Railroad
IN Marketing Farm Produce

Railway, st. Paul. MINI.
OO0,000,000 or 46.1 per cent; the rail
roads $495, 000,0 900, or 3.S per cent. He
estimates the legitimate expense of sell
ing at $1,000, 100000, or go per cent;
the waste in selling, largely because of
imperfect methods of distribution, at
$780, 100000, or IL per cent, and deal
ers and retailers profits at $3,745,-
100000, or 2S.9 per cent.
There is food for reflection in these
figures, in fact the entire article is of
absorbing interest, and the spirit in
which it is written is manifested by the
following extract, which | take the lib
erty of quoting:
On the contrary, it is truism of
e, economies that in such a country as
ours the prosperity of the farming
class is the prosperity of the whole
country. l do not believe that the
farmer gets enough for his products;
that is, | do not believe he gets as large
a share of what the consumer pays as
he should He works harder and long
Ell hours for his money than any other
class of men l know
Northern Pacific Railway Company
| have said that it is to your interest
to make sure that the charges of the
various distribution agencies are rea-
sonable. In the matter of transporta-
ton, SO far as this particular valley is
concerned, the Northern Pacific Rail
way is the most important agency
which you employ and | propose to
submit to you such information as will
enable you to determine for yourselves
whether its charges are reasonable OF
unreasonable You are familiar with
the control exercised by the State of
Washington over the railroads in this
state-a control extending not only to
rates but to details Of operation. The
gross earnings Of the Northern Pacific
Railway for the fiscal year ending
June 30, 1912, in the State Of Washing
ton, including all intrastate business
and its proper proportion of interstate
business, was $17,764, 47012. The OPP
Grating expenses for the same period
were $12,386, 447. ST; taxes were ST.
498, 010.65, making total of operating
expenses and taxes of $13,884, 1882,
which deducted from the gross earn
ings, leaves $3,880,011.6O, and this lat
ter amount exactly represents the net
return to the owners of the property
on their investment. The State Rail
road COMMISSION determined the value
of the property of the Northern Pacific
devoted to railroad purposes in the
state, for the year 1912, as $126,165,-
$1,000, and the assessment for taxes is
made on that valuation. On the basis
of the value determined by the Com
mission the net return to the owners of
the property is 3.07 per cent, a very
small fraction over three per cent, and
1t may be of interest to note that the
taxes of the company in the State of
Washington have increased from $S14-
228.44 in 1907 to 81, 498, O1O.65 in 1912,
an increase of "a per cent in five years,
which it will be admitted is going some
1t is true that the company has been
paying seven per cent dividend for a
number of years past, a result only
reached after long years of patient
waiting and two bankruptcies, regard
less of which, however, it will be ad-
mitted that seven per cent is only rea-
sonable return upon an investment as
ISOLATED with so much hazard and risk.
The very fact that the return on the in
vestment in the State of Washington
is only three per cent, as | have shown,
is the strongest evidence that can be
produced that the rates in this state
are not too high as a whole.
At the close of the last fiscal year
there was a surplus in the entire sys-
TEN, after paying operating expenses,
into l..