(ENCLOSURE.) BURLINGTON & MISSOURI RIVER RAILROAD COMPANY IN To all Agents: NEBRASKA. CIRCULAR No. 94. LINCOLN, Neb., December 15, 1888. In dividing cars among shippers whenever cars are scarce, as at present, agents will observe the following rule: Find from your records the number of cars loaded by each shipper during the six months from May to October inclusive and divide your empties among them now in the same proportion that they loaded then. Track loaders who did no business during these six months should be given half the number of cars which the regular shipper, who loaded the fewest, receives. T. E. CALVERT, General Superintendent. In answer to the communication received by the board from Messrs. Kellogg & Graybill, attorneys, the following letter was sent, and a copy of the same was forwarded to the general superintendent of the Burlington & Missouri River Railway in Nebraska, viz: JANUARY 7, 1890. Messrs. Kellogg & Graybill, Aurora, Neb.: GENTLEMEN:-Replying to your favor of the 4th. inst. in reference to an order submitted by the Burlington & Missouri River Railroad in Nebraska for the government of station agents in the distribution of cars at times when the demand for cars exceeds the supply. Such an order has been submitted. It bears date December 15, 1889, and is addressed to all agents. It is in effect: To distribute pro rata in proportion to the number of cars loaded by each shipper during the six months from May to October preceding. Shippers who did no business during these six months to be allotted one-half the number of cars allotted the regular shipper who loaded the least number of cars during the six months period. Of course this is arbitrary ruling. The general superintendent of the Burlington & Missouri River Railway in Nebraska, from the light of long experience, considers the rule most equitable and satisfactory to both classes of grain shippers (elevator men and track buyers). We would consider the plan adopted by the Burlington as fair a one as is possible to arrive at for general directions to subordinates. The rule would, however, be subject to modification in case appeal was taken to this board. For instance: To arbitrarily allot any portion of an insufficient number of cars to a would-be shipper, contingent upon subsequently buying the quantity needed for a load, while other shippers with crowded elevators are denied the number of cars needful to transport grain already bought and ready in bin for immediate shipment, would be, we think, contrary to the impartial treatment required of common carriers. For your information in the Broomfield case, we would inform you that a decision would be rendered on the facts obtained at a hearing (which would follow the receipt and filing of a statement of facts complained of duly verified), the following principle governing, viz: Whenever, by reason of unusual circumstances, freights have accumulated to an exceptional extent, and are then offered in extraordinary quantities, the company fulfills its obligations to the public by furnishing cars ratably and fairly to all shippers, in proportion to the freights tendered by them respectively. This principle being established, it remains but to determine the amount of grain actually tendered by respective shippers, in order to arrive at the proportion of available cars each person is entitled to. Of course, a tender of grain for shipment could not be made contingent upon its purchase, or upon delivery at the place of loading at a future time. A railroad company would be under no obligations to provide a car to any one upon the mere statement, "I'm going to buy 600 bushels of corn on the market. Set me in a car in which I may load it as I buy it;" but as soon as the person has the corn on hand, in sight, and tenders it for transportation, then begins the obligation on the part of the company to provide means for transportRespectfully, ing it. NEBRASKA BOARD OF TRANSPORTATION. IN THE MATTER OF MAXIMUM FREIGHT RATES IN NEBRASKA AND THE RELATION OF RAILROAD EARNINGS IN THE STATE TO VALUE OF RAILROAD PROPERTY. June 21, 1890. REPORT OF THE SECRETARIES. GARBER, Secretary: "At an adjourned meeting of the board of transportation, held at its office in Lincoln, on the 12th day of May, A. D. 1890, "Present: Hon. THOMAS H. BENTON, Auditor of Public Accounts, Chairman. Hon. WILLIAM LEESE, Attorney-General, Commissioner of Public Lands and Buildings. L. W. GILCHRIST, J. R. GILKESON, W. S. GARBER, Secretaries, Hon. B. R. Cowdery, Secretary of State, offered the following preamble and resolutions and moved their adoption, viz: "WHEREAS, The subject of freight rates is agitating the public mind, and believing the interests of the people and the railroads of the state are identical, and that a reasonable rate is one that will produce only a fair and just remuneration to common carriers based upon the present actual cash value of their roads and appurtenances; therefore be it "Resolved, That the secretaries of the board of trans portation be and they are hereby instructed to formulate and present to this board at its next regular meeting a reasonable freight tariff. "Resolved, That any citizen or citizens believing that railroads are earning an exorbitant rate of interest upon unreasonable valuations, and the general managers of the various railroads are hereby invited to meet the board on May 1st next at 10 o'clock A. M., for the purpose of giving information as to the actual value of railroad property. "The motion being put all members voted 'AYE;' thereupon the chair declared the resolutions adopted." This report is submitted in accordance with the action of the board, as shown by the preceding extract from the minutes of its meetings. Notice of the public session of the board, to be held on May 21st, and the general invitation extended to all citizens and railroad representatives by the resolutions were given general publication by means of the daily press of the state. There appeared in response to the notice and invitation, beside the railroad managers and counsel, but very few citizens to voice the sentiment of the people. Representatives of the Lincoln and Hastings board of trade constituted about the only people's representation vouchsafed in recognition of the declared object of the board to draw forth facts and to substantiate or disprove the assertions of a portion of the newspaper press of the state and of individuals that present maximum rates are exorbitant in comparison with cost values of railroads. The information to be gleaned from the discussion upon railroad rates and valuations, which was indulged in at considerable length by the people present at the meeting, was preponderant in disproof of unreasonable maximum rates and in disapproval of assertions of railroad extortion. The, to some extent, prevailing agitation in the state was characterized with general accord by those present before the board as due to the designing efforts of political agitators and demagogues. The secretaries felt that judgment upon the matter in hand should be in nowise influenced by efforts to conserve individual or political party interests. The matter was one of figures. The railroads cost certain amounts, different roads varying in cost under varying conditions; certain sums have been expended from time to time for bettering their condition, as the needs of an increasing business made necessary increased facilities. The total of the items of first cost and betterments would represent for all practical purposes the value of all roads placed in operation within ten years preceding. The cost of Nebraska roads in conjunction with the earnings therefrom, after deducting the cost of operation, would enable a determination of the rate of income. There is a diversity of opinion as to an allowable rate of income. It is clear, however, that the management of a common carrier should be unhampered by the state in impartially directing the operations of the road, to the end that a reasonable return upon the cost may be earned, and, in addition thereto, a sum sufficient to keep the road in good and safe repair, and to make those additions from time to time required for the convenience of the public. It was believed that a large proportion of Nebraska railroad mileage is in a physical condition demanding a considerable annual expenditure to meet the requirements of a rapidly increasing volume of business. Further, the safety of the traveling public, the means of improving and quickening the channels of commerce and of securing to all equal facilities and the greatest limit of accommodation, were deemed more in accord with the purpose of sovereign regulation and control than a demand for a strict adherence to charges, affording no more than a low rate of income upon the investment. Accordingly, it was concluded that 5 to 6 per cent. per annum is a reasonable rate of earnings for the purposes set forth, and that 7 per cent. would not |