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Show i'flTES ARE pSON nee Between Traffic 1 Railroads Shows iscriminafion. J RELIEF ;T AVITH REFUSAL icrs Pay Excessive Fuel Transporla-i Transporla-i Nearby Mines. , action of the Commcr-uittec Commcr-uittec on manufactures ries in urging action to oadB and coal companies to tlio cities of the prices, the Comincr-c Comincr-c bureau has made pub-.ndenco pub-.ndenco of the last two las passed in an effort railroads to make rates ,,t of further industrial state. So far, however, tho part of the traffic !U without success, but that tho campaign will id it will bo backed by icerns and the manufac-i manufac-i Salt Lake with a tho vast importance of the impossibility of as nl growth as tho state coal can be procured in rices which will permit nt of new industries and t of the present ones, idence between the tnif-tho tnif-tho railroads shows that tcs" on coal in the slate it present 200 to 300 r than the rates estab-stetes estab-stetes for like service; lcr states being in some dished by commissions tabhshed voluntarily by ons Considered, r reductions, the traffic into full consideration Df the service in Utah radea and the request is nro generally about 50 than the rates charged For instance: The if coal in tho Etate of imately 120 miles. For Denver & Rio Grande and the rate asked for In Missouri the charge 1 121 miles is 53 cents; 63 cents; Illinois, 95 cents; Texas, $1.05, and Iown, $1.08; the rate asked for by tho "Utah consumers con-sumers bcinj: greater than that charged in any of the states mentioned. The final reply of T. M. Schumacher, vice-president of the Denver & Rio Grande, refers to "increased cost of service, mountain grades and light tonnage" ton-nage" as being roaBons why the $1.75 rate must be maintained, while tho reply re-ply of S. JL Babcock. commissioner of the' traffic bureau, calls attention to the fact that, the envniugs of tho Denver & Rio Grande from purely local shipments ship-ments for .1009 were $1 1116,000. and the not earnings of the Denver & Rio Grande per ton mile and per mile of road nre greater than the earnings of any of the roads in the states usod for comparisons. He also calls attention to tho topography of North Dakota, whose rate of 6S cents has been sustained sus-tained by tho courts. Tho correspondence follows: First Gun Fired. Salt Lake, Feb. 9. 1010. Mr. T. M. Schumacher, vice president the Denver &. Rio Grande Railroad company. com-pany. San Franclaco, Cal. Dear Sir: On behalf of the business Interests and people peo-ple generally of the cities of Provo, Salt Lake City and Ogden, this bureau appeals to you for the establishment of reasonable reason-able charges by your company for the transportation of coal from the principal producing points on Its lines within this state to the cllica named, The rates as now existing are considered grossly excessive ex-cessive and unreasonable for the very limited servlco Involved. The current rates from Sunnyslde, Price, Clear Creek and Castle Gate to Provo are: On lump and nut, $1.50 and on slack 51.40 per ton; from the same points to Salt Lake City and Ogden on lump and nut, 3 1 .75. and on slack ?1.50 per ton. The distances to Provo aye: From Sunnyslde, 110; from Price, 77: from Clear Creek. 73. and from Castle Gate G7 miles; to Salt LaJe City from Sun-nvslde, Sun-nvslde, 154; from Price, 121; from Clna-Creck, Clna-Creck, 117, and from Castle Gate 111 miles: to Ogden from Sunnyslde, 131; from Price, ICS: from Clear Creek. 154, and 'from Caatlc Gate 148 miles. Since It appears to be the practice of your company to make the rates uniform uni-form from the points of origin Indicated you are respectfully aBked to establish from these points to Provo. Salt Lake City nnd Ogden a rate of 92 cents per ton of 2000 pounds on slack and $1.15 per ton of 2000 pounds on all other coal In carloads. These uniform rates proceed from the application of six mills per ton mile for the maximum haul of 191 miles from Sunnyslde to Ogden for the coal other than slack, and 80 per cent of the rate so obtained fpr tho slack. Under the use of proper equipment and the employment of modorn mothods of transportation operation, with the very limited average service, these rates would unquestionably yield exceptionally profitable profit-able remuneration to the Denver & Rio Grando company. Importance of Cheap Fuel. The cost of fuel Is a largo and most vital factor In the living economies of our people, of every class, and with practically practi-cally unlimited native measures of coal so very near at hand, within their own state, there appear the most forcible reasons rea-sons for its being supplied upon fair terms, and partlculraly that tho railroad transportation rates thereon should not be longer continued upon tho present extortionate ex-tortionate basis. Tho manufacturing Interests In-terests are likewise clearly entitled to the proper encouragement proceeding from a reasonably economical fuel supply, since Its abundance is so conveniently available. avail-able. Utah has done and is doing much for the Denver & Rio Grando Railroad company. com-pany. Since the lines within tho state were taken possession of by It about eight years ago their earnings from purely local lo-cal traffic have much more than doubled, and that phenomenal growth has proceeded pro-ceeded almost wholly from the transportation trans-portation of tho native products of the stato. and very largely from Its coal. With more adequate transportation facilities facili-ties tho remarkable increase In earnings might easily havo been far greater. Thcso Utah lines constitute the banner portion of the Denver & Rio Grando system In earnings, and tho pcoplo should be pcr-' pcr-' mltted to reasonably share In the bounto-ous bounto-ous prosperity of the carrier. Nearly all of the states now' possess regularly constituted railroad commissions commis-sions within whose province rests tho proper regulation of railway transportation transpor-tation rates. For such states as tho necessary nec-essary data Is nt hand wo hero present the rates on coal established through their commissions, together with the current rates charged by yout company and thoso now asked for, based' upon similar sim-ilar mileage or same cxtont of service, and have reference to the mileage to Provo, Salt Lake City and Ogden, as shown above: Some Comparisons. Rate Per Ton. Lump Miles. State. " and Nut. Slack. 67 Missouri ?0.12 North Dakota ...0.52 .... Texas 0.75 0.60 Iowa 0.82 0.62 Illinois 084 .Utah (present rato).... 1.50 1.40 Utah (now asked for).'. 1.15 0.92 73 Missouri ,...0.43 North Dakota 0.53 Texas 0.80 0.65 Iowa 0.S5 0.64 Illinois 0.85 Utah (present rale) ... 1.50 1.40 Utah (now asked for).. 1.15 0.92 77 Missouri .. 0.14 .... North Dakota 0.55 .... Texas 0.80 0.65 Iowa 0.88 0.66 Illinois 0.SG Utah (present rate) ... 1.50 1.40 Utah (now asked for).. 1.15 0.92 110 Missouri 0.60 .... North Dakota 0.64 .... Texas 0.05 0,80 Iowa 1.03 0.77 I Illinois 0.92 .... Utah (present rate) ... 1.75 1.50 Utah (now" asked for).. 1.15 0.92 111 Missouri .... 0.51 .... North Dakota 0.65 .... Texas 1.00 0.85 Iowa 1.05 0.79 Illinois 0.93 .... Utah (present rate) ... 1.75 1,50 Utah (now asked for).. 1.15 0.92 117 Missouri . 0.52 .... North Dakota .0.67 .... Texas 1.00 0.85 Iowa .1.00 " 0.80 Illinois ft. 94 Utah (present rate) ... 1.75 1.50 Utah (now asked for).. 1.15 0.92 121 Missouri 0.53 .... North Dakota 0.68 .... Texas 1.05 0.90 Iowa ,. 1.08 0.82 Illinois .... 0.95 Utah (presont rate) ... 1.75 1.50 Utah (now asked for).. 1.15 0.92 14S Missouri 0.58 .... North Dakota 0.76 .... Texas 1.15 1.00 Iowa 1.15 0.89 Illinois 1.00 .... Utah (present rate) ... 1.75 1.50 Utah (now asked for).. 1.15 0.92 154 Missouri 0.60 .... North Dakota. 0.7S Texas 1.20 1.05 Iowa 1.17 0.91 Illinois 1.01 .... Utah (present rate) ... 1.75 1.50 Utah (now asked for).. 1.15 0.92 155 Missouri 0.G5 North Dakota 0.80 .... Texas 1.20 1.05 Iowa 1.18 0.92 Illinois 1.02 Utah (present rate) ... 1,75 1.50 Utah. (now asked for).. 1.15 0.92 191 Missouri ...1.30 North Dakota 0.93 Texas 1.35 1.20 Iowa 1.20 1.03 Illinois 1.09 Utah (present rate) ... 1.75 1 .50' Utah (now asked for).. 1.15 0.92 Sustained by Courts, The rates shown for North Dakota were strongly contested in the courts by tho railroad Interests, but were ultimately found reasonable and constitutional by the nupromc court of the state, and became be-came effective last year. The oxceaslvo rates now charged by the Denver Rio Grando company aro clearly manifest in the foregoing comparisons, compar-isons, and when It Is further considered that the average mileage movement of the traffic now presented for treatment will not likely exceed. If it will even reach. 120 miles, tho unfavorable comparison compar-ison Is thorcby most sharply emphasized. It may also well be bornn in mind in viewing this proposition that tho ratio of the expenses of operntlon to enrnlngs of tho Denver & Rio Grande railroad is less than upon tho majority of the Important Im-portant railroads of the country cast of the Missouri river, while tho average not earnings per mile are more than upon most of the great railroads running west-wardly west-wardly from Chicago. It Is also well understood un-derstood that the factors of service expense ex-pense In coal traffic are here as everywhere, every-where, minimum In character, particularly particu-larly under the use of modern equipment and the application of approved operating operat-ing methods. Prosperity in Balance. This state Is entering upon a period of unexampled prosperity and growth, and tho railways are reaping their full great measure of benefit therefrom. It is hoped and believed that this prosperity and growth will indefinitely continue, but It Is fitting that the railroads should generously gen-erously perform their reasonable part In Its promotion. You have had long personal per-sonal experience with the traffic affairs of the state and none know better than yourself the many traffic inequalities and discriminations here existing. Many of our people to whom you nre personally known and who havo oxpresned confidence confi-dence in your exceptional abilities and high sense of Justlco foci that your now greatly enlarged flold of official action slgnifl03 the advent here of more liberal and modern methods of higher traffic administration ad-ministration to the mutual advancement and benefit of all Interests, and that the former and long continued plan of seeking seek-ing everything and bestowing nothing will possess no place in yopr wiser, broader' and vastly more satisfactory courso of action toward this .great community, where good will Is not without value. This Important application, so full of gravest consequences to all of our people, to all of their manufacturing Industries and to the general progress of the stato, Is confidently submitted, and upon It your considerate and favorable judgment Is most earnestly invoked and hopefully anticipated. an-ticipated. Vory truly yours. COMMERCIAL CLUB TRAFFIC BUREAU. BU-REAU. S. II. BABCOCK. Commissioner of Traffic. The First Reply. Western Pacific Railway Company, Traffic Department, Office of Vice-President, Vice-President, at Chicago. San Francisco, Cal.. Feb. 21, 1910. Mr. S. H. Babcock, Commissioner of Traffic. Commercial Club Traffic Bu-roau, Bu-roau, 221 Commercial Club. Salt Lako City, Utah. My Dear Sir Tour favor of the 9th Instant, addressed to me in San Francisco, Fran-cisco, has been forwarded and reaches me here. I shall be very glad to go Into this matter thoroughly and give it most careful care-ful consideration as soon as I can return re-turn west, which I hopo to do very shortly. Tours very truly. (Signed.) T. M. SCHUMACHER. Answers Requested. Commercial Club Traffic Bureau, Salt Lake City, Utah, March 15. 1910. Mr. T. M. Schumacher. Vice-President. The Denver & Rio Grando Railroad Company, Mills Building. San Francisco, Fran-cisco, California Dear Sir In accordance with the instructions in-structions from the board of directors of this bureau, your attention is respectfully lnvltod to our letter to you of February 9, Inst, asking modified rates for the transportation of eoal on the lines of your company within this state, as set forth therein, and to your, acknowledgment acknowledg-ment thereof under date of Chicago, February Feb-ruary 21, advising your intention of giving giv-ing the subject early consideration. The board now desires to know when it will suit your convenience and pleasure to furnish a definite reply to tho appeal above referred to. Wlillo not disposed toward to-ward undue insistence, yet tho board instructs in-structs it stated that your prompt advice ad-vice will be fully appreciated. Very respectfully. S. U. BABCOC1C, Commissioner of Traffic-Again Traffic-Again Postponed. Tho Denver & Rio Grande Railroad Company. Com-pany. Western Pacific Railway Company, Com-pany, Traffic Department, Office of Vice-President. San Francisco, Cal., March 19, 1910, Mr. S. II. Babcock, Commissioner of Traffic, Traf-fic, Commercial Club Building, Salt Lako City, Utah. Dear "Sir Acknowledging receipt of your favor of the 15th inst. asking for reply re-ply to yours of February 9, relative to modification of coal rates in Utah, Since my return, having been absent two months, I have been quite busy trying try-ing to complete my organization and have had as yet no time to look into rate adjustments, particularly Ihoso of so long standing as the coal rates In Utah. 1 will get around to this Just as soon as possible and give It due consideration, but you can appreciate a vory Important thing for me to do now Is to get my organization in shape and complete arrangements ar-rangements for the handling of through trans-continontai traffic. Yours truly, (Signed.) T. M SCHUMACHER. "We Need the Money." The Denver & Rio Grando Railroad Company, Com-pany, Western Pacific Railway Company, Com-pany, Traffic Department. San Francisco. Cal., April 21. 1910. Commercial Club Traffic Bureau, S. II. Babcock, Commissioner of Traffic, Salt Lake City, Utah; Dear Sir Again referring to yours of February 0, regarding coal rates from points on the Denver & Rio Grande railroad rail-road to Provo, Salt Lako and Ogden. In tho past fow years the rates to Salt Lake and Ogden have been reduced from J2 and 51.76 on lump and alack, respectively, respective-ly, to $1.75 and $1.50, and to. Provo the lump and nut rate to J1.G0 and the slack rate to J1.40. When the distance to Provo Is compared with tho distance to Salt Lake and Ogden I do not believe It is your Idea to contend for the Provo rato to Salt Lako, but whatever tho rates may be, or the difference In tho rates may bo botween tho two points, we feel tho present rates are as low as wo can consistently con-sistently make and receivo a fair profit for the handling of this traffic When tho $2 rato on lump and nut coal was established several years ago the cost of operating, as you know, was much loss than it is at present; notwithstanding notwithstand-ing this fact our rates today are lower. Tho tonnage probably has Increased some, but not In proportion to the Increased, cost of operation and the reductions we havo made in these rates. It Is hardly necessary for me to point out to you tho expensive servlco the Denver & Rio Grande performs in handling han-dling this traffic on account of the heavy grades over which It pnsses. The comparisons you mako; that is, our rates as against those charged by lines transporting coal In other Bectlons. you have used so-called prairie lines and not mountain railroads with grades to contend with like tho Denver & Rio Grande have in transporting this traffic, and apparently the volumo of tonnage has not been considered. Yours truly, T. M. SCflUM-ACHER. More Information. Commercial Club Traffic Bureau. Salt Lake City, Utah, May 0. 1910. Mr T. M. Schumacher. Vice President the Denver & Rio Grande Railroad Company. Com-pany. San Francisco, Cal.: Dear Sir Reply to your letter of April 21, in which you decisively decline to make any reduction in the local rates H for tho transportation of coal for the H business Intorests and people of Salt Lako City, Ogden and Provo, as appealed IB for in our letter to you of February 9, M has been delayed by the absence of the writer from this city, H From the completion of construction of H tho Utah portion of tho Denver & Rio H Grande system in 1883 Its coal traffic H has been, and, unless In very recent years, 1 exceeded by the proceeds of the low H grado ore traffic of the Bingham district, H Is doubtless now the most Important in H volume and abundant profit of any" sin- H gle feature of Its business. Tho trans- H portatlon service Is mainly very limited H In distance, involves tho minimum of cost H since the car tonnage is uniformly max- H lmum; the coal Is loaded and unloaded H without expense to the railway; the grade H line Is almost wholly with the loaded H car from the points of origin to the cities H named, while the rates are excessively H high and the tonnago very grcaL and H steadily Increasing. Tho service is also H of a character permitting the most eco- H nomlcal arrangement in its treatment, H In Illustration of the great growth of H the revenues to the Rio Grande railway H for the fiscal year ending June 30. 1895. H the gross earnings of the Utah lines (Rio 1 Grande Western railway) from the trans- H portatlon of all bituminous coal, local, H Joint and through shipments, was ?373,- H 298.72; for the fiscal year ending June 1 30, 1S99. $522,072.80. also Including local. Joint and through shipments, nnd a verv H large tonnago hauled from Clear Creek to Ogden for the Southern Pacific com- H pnny under a freight rate of 75 cents pof ton, wliilc for the fiscal year ending June H 30, 1909. being but ten years later, the earnings from the transportation of pure- H Iy local shipments alone, beginning nnd ending within the state of Utah, was $1,-116000, $1,-116000, according to the sworn tcsll-mony tcsll-mony of your general freight agent, Mr. Wild. H Concerning Comparisons, So far as your referonce to our offer- fl Ing comparisons with the traffic of prai-rio prai-rio lines is concerned, the states of Mon-tana Mon-tana and North Dakota, with their mca-ger mca-ger population, traffic tonnage and fairlv fl well known topographies, are not usual-ly usual-ly considered as being prairie in charac-tor. charac-tor. In Indiana, Illinois, Iowa and Mis-souri, Mis-souri, coal producing states also, we are H unable to find any important railway whose ratio of operating expenses to earn-lngs earn-lngs will averago anywhere nearly as low ns that of tho Denver & Rio Grande. while the earnings per ton of freight handled, per ton milo and net earnings per mile of road of the Rio Grande, arc IH generally, if not. always greater, than those of the railways In the prairie states mentioned. IH The business interests and people of IH those principal Utah cities -will experl- IH ence much disappointment in your sum-mary sum-mary denial of their appcnl for the much jH needed rellof asked for, and apparently IH be compollod to seek any other .channels that may possibly be found available for the accomplishment of their reasonable and Just requirements. Very truly yours. COMMERCIAL CLUB TRAFFIC BU- REAU. S. II. BABCOCK. Commissioner of Traffic |