Iowa. Board of Railroad Commissioners.

Annual report of the Board of Railroad Commissioners for the ..., Volumes 3-4 online

. (page 49 of 76)
Online LibraryIowa. Board of Railroad CommissionersAnnual report of the Board of Railroad Commissioners for the ..., Volumes 3-4 → online text (page 49 of 76)
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48 FOURTH ANNUAL REPORT OF THE [(2.



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1882.] BOARD OF RAILROAD COMMISSIONERS. 49

This railway is located almost wholly within this State, bat it does
and maintains a regular through business between its stations and
Chicago via the Chicago, Rock Island & Pacific, and the Chicago, Bur-
lington & Quincy. From North wood station the table extends back
only ta 1877, as the road was not completed to that place until that
year. We take the article of wheat as the basis of our calculations
on this table. The decrease in the through rate from Northwood for
the five years mentioned is fourteen and three-tenths per cent, or two
and eight-tenths per cent per annum. In the Northwood local rate
to Burlington there has been practically no reduction since 1877. The
through rate from Nora Springs to Chicago shows a reduction of four-
teen and three-tenths per cent since 1873; but the local rate to Bur-
lington shows a decrease from 1871 of twenty-five and eight-tenths
per cent. The Clarksville reduction on through business is the same
as on that of Nora Springs and Northwood, and the reduction to
Bnrlington is only eight per cent. The reduction on through hauls
from Cedar Falls is seventeen per cent, and on the State or Burlington
rate, twelve. On the Vinton rate to Chicago the reduction from 1873
is twenty-eight per cent, and on the local rate there is no reduction at
all. Between Cedar Rapids and Chicago the reduction is thirty-five
per cent; but the rate to Burlington is increased by one cent per one
hundred pounds over that of 1871. The through rate from Solon is
reduced thirty-five per cent, while the local rate is unchanged. The
through charge from West Liberty shows a reduction of thirty-five
per cent, while the local rate shows an increase of two cents per one
hundred pounds. From Wapello the Chicago rate is reduced thirty-
three per cent, and the Burlington rate is increased two cents a
hundred. To one versed in the philosophy of the distribution of rail-
road rates at competing and non-competing points, and particularly to
such points as v^U best secure a long haul, this want of proportionate
redaction to Burlington from all stations south of Cedar Falls is no
enigma. It is not improbable also that this proportionate distribution
of rates on wheat, being eight cents per ton per mile from Wapello to
Burlington (30 miles), and only one and fifty-two one-hundredths
cents per mile to Chicago (262 miles), is a part of the consideration in
the traffic arrangement between this company and the Chicago, Rock
Island & Pacific, and the Chicago, Burlington & Quincy, which trans-
port its through business. All three of these roads, therefore, are
either directly or indirectly interested in so adjusting rates on grain

and live stock as will draw them to Chicago rather than the Missis-

7 -



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FOURTH ANNUAL REPORT OF THE IC2.

River markets. It sliould be said, however, that on the several
of general merchandise, salt, etc., this forcing local rate at
haul stations is not imposed, as will appear by an examination
table.

proper to add here that terminal expenses are relatively much
on short hauls than on long, and this fact should be kept
id when considering the relatively high local charges on short
les. It is also proper to remember that what is true of the Bur-
1, Cedar Rapids & Northern as to increased relative charges on
I east-bound freight from stations near the Mississippi River,
true of all east and west lines — on all lines doing a through
Bs with that market. The intention evidently is to avoid break-
ilk at the river and take the chances of river competition to
narkets over other routes.

lay not be amiss right here to ask what are the results of this
reduction of railway charges? Some hints of the savings in
may be gathered from a calculation of the savings on our ex-
»f grain, meats, and dairy products. A careful statistician, Hon.
d Atkinson, of Boston, puts the grain and meat product for
in 1880 of these Northwestern States, which finds it« first mar-
Chicago, at eight million tons. The average distance from
States to the sea-board he estimates at 1,300 miles. The reduc-
rates from 1866 on the transportation lines by which this body
duce was carried to the sea-board, is shown to have been fully
at per ton per mile. The saving, therefore, is seen to reach the
9US sum of one hundred and four millions of dollars. But as
e of 1866 partook somewhat of the high prices of everything
I three or four years following the war, let us take the time
anuary 1, 1874. Present rates in the average from the point of
tion to the sea-board have been reduced half a cent per ton per
rhich affords a net saving of fifty-two millions of dollars on the
3d portion of the grain, meat, and dairy product of the North-
)r the year 1880! The same authority puts the value of these
3d products at $389,000,000. The saving in the cost of raQ
>rtation, therefore, at half a cent a ton a mile, on this body of
5, amounts to a fraction more than thirteen and one-third p^r
: their total value! We think it safe to say that one-sixth of
ring passed to the credit of Iowa producers — over $8,000,000 on
ported grain, meat, and dairy product for the year 1880!
mcluding this branch of the report, the Commissioners ventaie



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1882.] BOARD OP RAILROAD COMMISSIONERS. 51

to assert that freight is now carried at a rate which no competent rail-
way manager or transportation expert would have thought possible
half a dozen years ago. The public everywhere will welcome the
facts, and from them learn to value the means by which they have
been obtained. Great confidence must also be felt in the continued
operation of these effective forces. While it is true that the reduced
rates are more marked on the long. hauls between the points of pro-
duction and consumption — the farm and the sea-board — the factory
and the consumer — the jobber and the retailer — it will not be forgot-
ten that these through hauls comprise over eighty per cent of the
entire volume of Iowa's rail transportation.

We have devoted considerable space, time, and work to this subject
of tariff rates and reductions, but we are confident that the exhibit
will be found of great value alike for reference and instruction upon
a branch of the " Railway Problem " less understood perhaps among
the mass than any other on which they seek information. While it is
shown that on the principal or main lines in the State the ratio of
redactions is much larger than any one would have supposed, and that
as a consequence the producer and manufacturer, as well as the con-
sumer, have been largely benefited by the saving, the Commissioners
do not wish to be understood that the rates on some of the roads
named in this connection, may not be still further reduced without
doing injustice to the corporations. Indeed, they are led to believe
from the pregnant experience of the past few years that further re-
dactions, through and local, will be made in future as the business
from year to year shall demonstrate it as reasonable and just.

MAP AND PROFILES.

The Board of Commissioners have prepared to accompany this
report a map of the State showing the railways built, and as far as
they were able to obtain them, the projected lines. The main roads
are in different colors to show the extent of each system and the pro-
portion of the roads of the State that are under such management.
It was the intention to put no road on the map as completed that they
did not have reason to believe would be finished before this report was
published. The extremely unfavorable weather for railroad building
daring the entire year will compel the leaving of some roads unfin-
ished when the winter comes, that are marked on the map as comple-
ted, but we believe they will be finished early next year. The extreme
activity in construction was more than counterbalanced by the wet



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52 FOURTH ANNUAL REPORT OF THE [C2.

w6ather. For the year ending June 30, 1880, five hundred and eighty-
one miles was built; for the year ending June 30, 1881, four hundred
and forty-nine. In an ordinary year and under favorable circum-
stances it is probable, from the apparent anxiety to reach and occupy
new territory, that the roads built in 1881, would have far exceeded
the number of miles of tlie previous year. The map was prepared
from data furnished by the railroad companies and should be very
nearly accurate.

In addition to the map the Board has prepared a profile of grades
of the leading trunk lines and some of the north and south roads.
This was prompted by a wish to show the elevations to be overcome
in crossing the State and the grades with which each of the roads had
to contend. The gradients, or the rate of ascent and descent and their
length and relative location, are among the important factors that go
to make up the cost of railroad transportation. For an intelligent
understanding of the subject a thorough knowledge of the gradients
is necessary, and the Board feel that in placing before the public in
this simple and easily understood form one of the elements that go to
make up the cost, they have rendered it a service, and that the legislar
tive mind can approach this branch of the subject with the material
for acquiring the same knowledge that is required by the railway
manager.

That we do not overrate the importance of this, we are sure. Human
ingenuity as yet has only been able to utilize and control the laws of
gravity, not to overcome them. The New York and Lake Shore rail-
way companies are, we understand, expending immense sums of money
to reduce their grades from Chicago to New York to a maximum of
sixteen feet to the mile, expecting thereby to materially reduce the
cost of moving their trains. The distance by this route is fifty-eight
miles longer than the Pennsylvania Central, and thirty miles lon^^
than the Erie. The grades on the shorter routes at points differ but
little from the maximum grades of the Iowa trunk lines. By refer-
ence to the table of freight charges inserted in the text of this report,
it will be seen that the Lake Shore road has for a series of years hauled
its freight for the lowest rate per ton per mile of any of the toads,
and the New York Central generally among the lowest. In the strug-
gle that is now going on between the trunk lines, Mr. Vanderbilt, it is
stated, claims, even for his passenger tra£Sc, that his gradients and
alignment make his route fully equal to the Pennsylvania Central for
fast passenger time notwithstanding the difference of distance.



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1882.] BOARD OF RAILROAD COMMISSIONERS. 63

CAPITAL STOCK.

The total number of miles of railroad in Iowa reported bj the various
companies to the Board is five thousand four hundred and twentj-six.
The report of the capital stock and debt is based on the entire lines of
those roads which run into other States and amounts in all to fifteen
thousand and seventy-seven miles. The Commissioners estimated
that the stock representing the part of the roads in Iowa, added to
the stock of the roads entirely in Iowa, amounts to $103,905,021.05,
or, $19,149.54 per mile. Of this amount $1,286,493.91 is held by par-
ties living in. the State. The total number of stockholders living in
the State is one hundred and ninety-five; the total amount of stock
held in the State, is nearly three hundred thousand dollars less than
was reported last year.

In the States of Indiana, Iowa, Mississippi, New Jersey, Ohio, Rhode
Island, Texas, Vermont, and Virginia, the stock of railway corporar
tions held by individuals is subject to taxation; in all the other States,
in which probably ninety per cent of the railway property of the
nation is held and owned, the taxes are collected from the corporation.
The stock in the hands of individuals is not taxed. This double taxa^
tion may possibly have had some weight in preventing our people
from investing in the stock of our own roads.

DEBT.

The total debt of the roads in Iowa as reported and estimated by
the Commissioners, is $110,766,483.66, or $20,413.91 per mile. Of this
amount $103,202,075.79 is funded debt; $7,564,407.87 is unfunded or
floating debt.

STOCK AND DEBT.

The stock and debt of the roads in Iowa amount to $214,671,504.71,
or $39,563.45 per mile. The following table shows the amount of
stock and debt per mile of each company as returned to this office:



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64



FOURTH ANNUAL REPORT OP THE



[C2.



NAME OF RAILROAD.

Burlington, Cedar Rapids & Northern

Central Iowa

Chicago, Burlington & Quiiicy

Kansas City, St. Joseph & Council Bluffs . . .

Chicago, Milwaukee & St. Paul

Chicago & Northwestern

Chicago, Iowa & Nebraska

Cedar Rapids & Missouri Biver

Des Moines & Minneapolis

Maj)le River

Chicago, Rock Island & Pacific

Keokuk & Des Moines

Chicago, St. Paul, Minneapolis & Omaha . . .

Crooked Cteek

Des Moines & Fort Dodge

Dubuque & Dakota

Cedar Falls & Minnesota

Sioux City & Pacific

Wabash, St. Louis & Pacific

NARROW-GAUGE ROADS.

Burlington & Northwestern

Des Moines & Northwestern

Fort Madison & Northwestern

Cedar Rapids & Marion



AMOUNT.



i 25,26187
41,47«^



87,158JM
27.196^
52,31500
58,60197
41,496il
14,9l7i«
17,130.08



42,386jOO
32,433.4$
10.764.70
70,048.17
19.797J99
41,088.62



64,244i»



9,487^
14,907.68



INCRBA8B OR DECREASE OF CAPITAL STOCK.

The following table shows the added mileage and the increase or
decrease of capital stock within the year for all roads reported:



NAMES OF ROADS.


MILES.


INCREASE.


DECKKASS.


Burlington, Cedar Rapids & Northern .
Chicago Burlinflrton & Ouincv


71.38
1,306.80

58.58

464.81

1,116.96






8 8,688,820.00
409,000.00




Kansas City, St. Joseph & Council Bluffs

Chicago, Milwaukee & St. Paul

ChicafiTO & Northwestern




klJS80M0S»


21,755,660.00
854,100.00




Des }i oines & Northwestern




Chicago, Rock Island & Pacific

Chicago. St. Paul, Minneapolis & Omaha
Das \ lOines &, Fort Dodsre


42.87
195.99




3,760,000.00
l,915,180i)0

1,000.00
1,203,100.0<»

3,157.45
ifinnom






Dubuaue &, Dakota


7.94
76.00




Wabash St Louis & Pacific




Burlincrton & Northwestern




Cedar t ^uids & Marion '.


5.00








_


Total


8,346.88l» 38,107,617.45


$7^,440X0



The increased mileage is 3,345.83; the increase of stock is $33,107,-
517.45, from which deduct the decrease of stock, $7,880,440, and we
have the actual increase of stock, $25,227,077.45, or $7,537.31 pw"
mile.



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1882.]



BOARD OF RAILROAD COMMISSIONERS.



65



INCREASE OB DECREASE OF DEBT.



The following table shows the increase or decrease of debt during
the year for all roads reported:



NAMES OF ROADS.



Burlington, Cedar Rapids & Northern. .

Chicago, Burlington & Quincy

Kansas City, St. Joseph & Council Bluffs

Chicago, Milwaukee & St. Paul

Chicago & Northwestern

Chicago, Iowa & Nebraska

Cedar Rapids & Missouri River

Des Moines & Minneapolis

Maple River

Chicago, Rock Island & Pacific

Chicago, St. Paul, Minneapolis & Omaha

Des Moines & Fort Dodge

Dubuque & Dakota —



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