The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-11-10
SIX GOVERNORS
HEAR RAILWAY
HEADS SPEECH


But the results from these ex-
penditures, Budd continued, have
proved that the investments were
wise. He said that the efficiency
of the roads has increased remark
ably through the investments. "For
the number Of ton miles moved per
employee per year has increased
from about 100000 in 1920 to about
100000 in 1927 for the railways in
the United States as WHOLE" he
said. "The Great Northern has in
creased it's production per employe
from a little over 100000 tons per
mile in 1920 to about 100000 in
1927. The railways have been able
to keep solvent for the most part
while lettering their performance
and improving their service"
The speaker said that the Great
Northern's charge for freight haul
ing is now only 36 per cent higher
than it was before the war while
costs have increased to a much
greater extent.
Canadian Rates Lower
"Why are Canadian freight rates
lower than those in the United
States?" Budd answered this ques-
ton by referring to a recent report
of the Interstate Commerce Commits
sion, bringing out the following
facts:
Canadian roads are operated by
two principal companies, the Cana
dian National and the Canadian Pa
cific. In 1926 the Canadian Nation
al failed to earn enough to pay in
terest on its debt by $42, 197, 1894 and
in 1926 failed to earn its interest by
$29,s94,O72.
The Canadian Pacific was given
by the Dominion government $685.
0O0,O in cash, 25,OOO,00O acres of
land, certain completed lines of rail
road, monopoly in certain terri
tory for 20 years, and perpetual ex-
emption from taxation by the Do
minion or any Province established
after 1881.
In 1924 the Great Northern, with
8,25l miles of road, paid more taxes
than were paid in that year by all
the roads in Canada, having in ex-
cess of 100000 miles of track.
Canadian railroads in 1925 were
taxed $10,783,788 while the roads
in the United States were taxed
$396,538,O02.
Budd also explained that while the
rates on grain from Minnesota,
North Dakota, and Montana are
higher than rates for equal dis
tances in Canada, they arc lower for
equal distances than the rates on
grain from any other grain produc-
ing area in the United States to
primary markets.
Public, Railroads Intcrdepcndent
"The point I desire to make is
that whatever can be done by the,
public and by the regulatory bodies
representing the public to aid the
railway companies in producing
transportation will result in rates
being lower to the public for the
service rendered." he said.
North Dakota is favored geo.
graphically by being in the path of
four favorable and widely separated
transcontinental railway routes:
The Canadian Pacific, the Milwaukee
road, the Northern Pacific, and the
Great Northern. Seventy per cent
of the traffic in the state is through
traffic, he continued. All but the
northern states along the paths of
the two great northwestern railways
are in unfavorable positions in spite
of the Importance Of the productive
local possibilities for traffic. The
state of Oregon and Denver, Colo,
are the principal DIRECTORS on this
score.
Demands Higher Standards
Through traffic demands higher
standards Of transportation, he said,
and explained how the roads were
being improved. Through-traffic
competition is offered the railroads
by the Panama canal, automobiles
and trucks on highways, and the
airplane. They have all proved SER
ious, he said, but the railroad will
never be displaced by any or all of
them, according to those who look
into the future as far as is human
ly possible.
The North Dakota corn show, he
said, is an evidence that the farmer
is attempting to reduce his cost of
plOuuGtAOus VI WHICH transportation
is great item. Transportation
costs must be reduced, and all rail-
roads are searching for methods Of
reducing the present costs.
Il know that much thought and
study have been given to that SUBJ
ject and to the equally important one
Of increasing the quality and guam
tity Of Yields and by experimenting
the former single crop of small grain
with other crops and with livestock.
dairy. and poultry products" he
said in closing.