Year: 1873

this State have been revising their freight aud passen
tables and tho greatest interest is manifested not
only in Chicago but all the State and a adjoining
States. in the practical working of the new rates


Seeking the most intelligent opinions on this surJeo
called yesterday upon officer Of one OF the roaus
most Interested, found him not only willing To as
sis mo in othor ways my Investigations but 10 give
tho benefit Of his careful study Of the subject ana 10
explain me fully the railroad view Of the question
This repeat without comment .t.t


ONLY FOUR RAILROADS. rATTNG RToULAR DIVIDENDS


He said thattt WAS impossible ANY to say, as
vet what effect the new tariff rates would have upon
the income of the railroads. Tho only way IN Wmch
that oold he asoertned would be by comparing the
ceipts a each station after the rates had been In
operation several with those OF the station
for corresponding time uuder the old rates 1t was his
impression that the OF his road the income
would be slightly reduced under tho new schedule OF
tariffs. The immediate effect OF the change, he was
quite sure would be to reduce the amount Of business
done on the roads For three months past the people
had been looking forward TO the change in rates and
pectng that az poinCs where two roads COM
pete for the business at least they would be increased
He had doubt therefore, that many had done their
business IN advance order complete IL under the
Old tariff and indeed IL was TO this no attributed
the increased business of his road during the Pa''
month


"The interests Of the people aad Of the rairoauS u
this State are IDENTICAL" he continued III Is ho
sary for TO so into the country anu ""iOHN
people to learn whether they prosperihg OF nO' ~
SIT in my Office here and look over our ireEu' le'u''
can toll whether the farmers are getlng goou prizes
for their crops and money is plenty Win 'nen' vi
whether they have bard work to get along anu lnoe!
scarce so il will be with the working OF tnis Ia" "
is honestly obeyed IL can't at the same unle rei1'o
tho farmers II il oppresses the railroads, nor vice versa
AnyI,,y tlat will permanently benefit the farmers. II
sucb law can be passed, must at the same time, be
tair for the railroads


"I II true that the railroads OF this state have been
making very large profits during the past few years T.
asked.


."Nc Sir it is not true" his reply. 'The amount
n STOCK which the railroads of this state have out Is not
equal to the actual amount Of money that has been put
INTO them. Oar railroads have not been mueh' In
Wast you know, and their stock has not been water
3D. On other hand many OF our roads have bought
up mortgage bonds aui in short as said
oefore the stock roads today, would not pay for
The money that has been put into them When you once
0ud railroad, YOU know, must constantly extend
ts facilities the demands OF trade increase II you
stop you lose your money already put in. II we build
40 new branches and don't extend our track mile
suppose our road requires at least 81 100000 year in the
shape OF new rolling stock &c, demanded by the IN
srease Of trade When the farmers look at our
roads and with fifty sixty millions OF capital
today when they started Is years ago with ten they at
once conclude that the company must be q great
monopoly and that it must be making too much money.
But they what have told you, that have had
20 put in more money every year in order to
80 their increasing business To be sure the railroads
have increased in value property has advanced but
10 more so than other kinds OF property. Travel
through tins State and examine the farms. When the
and was settled it cost only two and half to five
dollars acre. and 1t is worth from $50 TO SIS.
Railroad property has not accumulated any more
pldy than that Only four railroads in this State pay
regular dividends, and only high seven per
sent"


TIE NEW DIvERTING TRADE FROM CHICAGO.


"what effect do you anticipate that the new law,
should be continued and enforced, would have upon
he course Of trade 2"


"It would turn away from Chicago, and cause Illinois
farmers send their grain directly Cincinnati, Toledo
Dr. ST. Louis, or through 70 New-YOrk Any
this will necessarily be- higher rate Of freight
must be paid for the longer distance in every case
Sow you take any point that is few miles
oearer ST. Louis than it is Chicago and the business
will be sure 10 20 TO the former unless merchants
will pay e1I' n more the produce than the market
price Louis the increased freight charges
Again. this law does not affect freight charges in
adjoining States. Whenever one of our railroads
reaches the Illinois boundary, it may increase
Or reduce its charges may be most for Its interest
and West road extending the State,
,rOn st. Louis Cincinnati, may comply with the law
while the freight within the state and carry it for
oOthng through Indiana and Ohio that its through
rate rom point IN tnS state 10 Clnclnnatl
be the same that ii before. road running from


the southern or central part Of this State to Chicago
evade the law in that way it must either put down
local reighs the through rates must raise through
rates to correspond with local charges


"But the people who will suffer most those who do
business at competing points, that is where there
two or more railroads. Many towns ape counties have
voted bonds given aid in varcds other ways to rail
roads in order to cause Competition and thus
cheap freghts JIs Jaw deprves the producer at these
points Of all IT, benefits Of this competition CT course
could rot afford to make up schedules on the
basis c the old competing rates. There may be excep
siors to this but you will find, las rule, that those
points which have choice of two or more routes will
have TO pay higher rates than before"


TIE LAW TO BE IGNORED BY THE COMPANIES N CARRY


ING THROUGH FREIGHT.


Tcalled the gentemans attention TO decision by the
Railroad Commissioners Just published that the local
rates OF freight be applied to merchandise shipped
from point outside the State to point beyond it, that
L. 10 freight passing across the State and not stopping
In it.


"Yes" he replied. "and If we obeYed that provision
OF the should either have to give up entire
through freight business abandon roads. Sup
pose for instance, loaded IN San Francisco with
tea destined for newYork is delivered at the terminus
Of one OF our roads. We shall freight train
tho line whether we take that not, and If only
charge exactly the average cost of taking the
road leaving margin for profit we shall still be doing
better than though did take the car because the
actual increase the expense Of running that particular
train with that will be great as the average
cost OF transporting cars IL may require the same
amount OF fuel 10 the train without with it, and
ust as many men 10 manage It, If charged as high
A we do for carrying freighs should not get
he business because there Is such sharp competition
between the roads and with cheap water transportation
30 we have agreed to ignore the law entirely and shall
sarry through freight as before"


unn 90 O iowa. Won Will find the people there