Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1939-01-26

otner IMAM livestock, which 1t appears
can be as economically and con-
veniently transported by truck as by
rail. However, in practice it has not
worked out that way. The motor
carriers are constantly striving to
extend their operations, making long
hauls of both compact and bulky
commodities, and are eating into the
railroad income.
The railroads are in bad shape, and
it may be said that the financial
difficulties now confronting the rail-
line carriers are, for the most part,
due to the reduction in the volume
of traffic handled.
Referring to Class 1 railroad OPP
erations in the Western district, the
operating statistics show the num-
Der of revenue passenger miles in
1916 was 5,103 million or 81 percent
greater than the number transported
in 1887. The average number of
revenue ton-miles transported dur
ing the 1927-1929 three year peak
period was 22,556 million or II per-
cent greater than that of 1887.
Railroads Hard Pressed.
Since 1920, the railroad carriers
in the Western district have made
improvements to their properties re-
sulting in an added net cost of 668
million dollars. The railway plant
and facilities now in use are capable
of handling approximately double the
business coming to their lines AS a
result of this loss in traffic and rev.
enue, the net income earned and
available for interest charges and
dividends was only 1873 million dol
lars in 1887, whereas the fixed charges
for interest and rental for lines OPP
Grated under lease, were 246 million
dollars. In 1916 the net income avail
able to meet interest and other fixed
charges was 456 million dollars, or a
sum of 273 million greater than in
1887.
When for period of years the net
income of a corporation is reduced
to point far below the amount
required to meet interest charges,
eventually the result is receivership,
and that is what has happened to 81
railroads, which at the close of 1887
operated 1888 miles of owned road,
with an investment value of Aba
million dollars.
Any fair and intelligent discussion
of the railroad problem must take
into account the labor and wage
situation. Compared with 1916, the
average number of employees on the
payroll in 1929 increased 1855 or
only IL percent, while the total in
crease in compensation to employees
was SIT million dollars or 91.3 per-
cent. A similar comparison of 1916
with 1887 shows that the total num-
Der of employees had decreased 1922
1877 while the compensation increased
205 million dollars AS result of the
improvements made in the rail-line
transportation facilities and operat-
ing methods, and decrease in traffic
volume, the compensation paid en-
ployeS in Minnesota since 1929 de-
creased approximately 81 million dol
lars per year.
The factors just cited are matters
which the Minnesota Commission and
the Interstate Commerce Commission
must take into account in a rate case
proceeding.
Trucks, Trains Needed.
However, the trucks are here to
stay, and the service they render is
an important part of your transporta-
ton convenience and transportation
cost. AS stated before, we have a
very complicated problem in the reg
ulation of these two branches of our
transportation system. 1t is not sound
economics to have the trucks ruin
the railroad systems, nor, on the
other hand, is it sound economics
to let the railroads have a monopoly
of transportation. One system must
supplement the other, and yet both
must be regulated so as not to be
ruined by cut-throat competition,
nor, on the other hand, to stifle COM
petition. The purpose of all regula-
ton is not to benefit the railroads
or the truck operators, but is to main
tain an adequate transportation sys-
tenn and reasonable transportation
costs for the general public.
Under provisions of Chapter ITO,
Session Laws of 1888, the Railroad
and Warehouse Commission issued
during the year 1888, approximately
$500 permits to contract truckers.
These permits are issued upon pay
ment by the applicant of $3.50 per
vehicle and the presentation of paid
policy for the prescribed amount of
liability insurance.
Eighty percent or more of the
contract and irregular route carriers
are engaged in the transportation of
livestock. In addition thereto we
have 107 truck carriers operating be-
tween fixed termini over regular
scheduled routes, under provisions
of Chapter 1875, Session Laws 1925.
AS to each and all of said carriers,
the law provides that the Commits
sion shall prescribe the rates to be
charged, the system of accounts to be
used, secure an annual report each
year, and police their operations so