The Railroad Question: A historical and practical treatise on railroads, and remedies for their abusesLarrabee, William
History
The Railroad Question: A historical and practical treatise on railroads, and remedies for their abuses
Larrabee, William
Railroads; Railroads -- United States; Railroads and state -- United States
"When it is considered, in connection with these figures,
that the four general classes were left by the legislature
under the same tariffs as had been enforced by the
companies, and, as a rule, first class is three times the
rate of class D, and third and fourth class materially
higher, the evidence seems conclusive that the rates fixed
by law would produce an average materially higher than the
average of the whole year, stated by Mr. Mitchell at 2-1/2
cents. It seems also probable that, had the rates fixed by
this law been applied to the whole business of the line, the
interstate as well as the State traffic, it would still have
produced a larger average. The latter of course is the
proper test. There are little inaccuracies in the material
facts as stated by Mr. Mitchell which were pointed out at
once. For example: In his tabulated statement of passenger
earnings per mile, averaging the gross earnings from
transportation of passengers who paid any fare, and omitting
the large number who went free, the rate is stated at 3
42-100 cents per mile; then he says: 'The law in question
proposes to reduce our passenger rate twenty-five per
cent.,' which would have reduced the rate to 2.57 cents per
mile, while, the rate fixed by the law complained of was
three cents per mile. Then Mr. Mitchell proceeds: 'And our
freight rates about the same; thus deducting from our
present tariff about twenty-five per cent. of our gross
earnings.' It was immediately pointed out that the law only
applied to strictly State business; that is, to traffic
that originated and ended in the State of Wisconsin. All
other traffic was interstate commerce, and could not be
controlled by State legislation. The volume of business
which would be affected by the law would therefore be
comparatively small--estimated at not over ten per cent., of
the total traffic of the line. Hence, if the rates fixed by
the law were twenty-five per cent. less than the rates the
company had been in the habit of collecting (which was
denied), it could not possibly have 'deducted from its
present tariff' more than two and one-half per cent.,
instead of twenty-five per cent. as stated by Mr. Mitchell.
"It was claimed that the facts were, that the Chicago,
Milwaukee and St. Paul Company, in its efforts to bankrupt
the Lake Superior and Mississippi Company, had many of its
interstate rates so low that it had resulted in loss, and
that its other rates had been made unreasonably high in
order to recoup this loss, and that the State of Wisconsin
was compelled to pay a part of the expense of the
transportation of favored sections of the State of
Minnesota."
Public-domain text, read in full here on John Shaqi.
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