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parts of the line, straightening the track at one place or another or remodeling yard or terminals.

We always endeavor to give you the correct mileage as shown by our records at the time of making up our report.

Yours truly,

C. S. STURGIS.

The following companies offer the explanations hereto appended as tending to show the difference in the mileage of their respective lines for the years 1889 and 1880:

IOWA CENTRAL RAILWAY CO., AUDITING DEPARTMENT, MARSHALLTOWN, IOWA, March 5, 1991.

MR. W. W. AINSWORTH, Secretary Board of Railroad Commissioners, Des Moines, Iowa: DEAR SIR-Replying to your favor of the 3d inst., regarding difference in the mileage as shown by our report for 1889 and 1990, I hand you herewith a memorandum showing how the difference is arrived at. The mileage from Manly Jet. to Lyle being 20.2 miles, is owned by the C., St. P. & K. C. R'y, we having surrendered our lease of same on Feb. 1st, 1890. On Feb. 10th we leased 9.32 miles from Mason City to Manly Jct. to the C., St. P. & K. C. R'y. During 1890 we constructed 2.431 miles of new track and reported 2.5 miles, known as the Lynnville stub as branch mileage, instead of side tracks as was reported in 1889. There appears to have been an error in the mileage returned for 1889 of .26 of a mile. Yours resp'y, E. S. BENSON.

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CHICAGO, MILWAUKEE & ST. PAUL RAILWAY CO.,
GENERAL AUDITING DEPARTMENT,

CHICAGO, ILL., March 5, 1891.)

MR. W. W. AINSWORTH, Secretary Board Railroad Commissioners, Des Moines: DEAR SIR-In reply to yours of the 3d inst. The printed statements of mileage attached to our reports for 1889 and 1890 show:

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CHICAGO, ST. PAUL & KANSAS CITY RAILWAY CO.,)

GENERAL AUDITOR'S OFFICE,
ST. PAUL, MINN., March 4, 1891. S

MR. W. W. AINSWORTH, Secretary Railroad Commissioners, Des Moines, Iowa:

DEAR SIR-Replying to yours of the 2d inst., for explanation of difference between mileage shown in report of June 30th, 1890, 474.53 miles, and report of June 30, 1889, 445.63 miles, I would refer you to page 53 of our last report, and also statement herewith enclosed. Yours truly,

M. C. HEALION,

General Auditor.

TOTAL MILEAGE OPERATED BY CHICAGO, ST. PAUL & KANSAS CITY RAILWAY COMPANY, IN THE STATE OF IOWA, TRACKAGE RIGHTS EXCLUded.

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*Operated under lease from Iowa Central R'y from Manly Jct. to Mason City...

9.10

Total.

474.53

445.63

*From February 1, 1890.

From February 10, 1890, to December 31, 1890.

19.80 miles from Minnesota State Line to Manly Junc., Iowa, were leased to the Iowa Central Railway Co. to February 1, 1890, and from February 10, 1890, were operated by this company together with 9.10 miles from Manly June. to Mason City, Iowa, leased from the Iowa Central Railway Company. The lease of the latter (9.10 miles) was surrendered on December 31, 1890.

TONNAGE CROSSING MISSISSIPPI RIVER DURING YEAR ENDING JUNE 30, 1890.

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MILES.

June 30,

1890.

June 30,

1889.

1890.

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TONNAGE CROSSING MISSOURI RIVER DURING YEAR ENDING JUNE 30, 1890.

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C., St. P. M. & O.Sioux City

*No report made.

+This company made no report for 1889, and state they cannot divide the total for

CONCLUSION.

The year 1890 has been a remarkable one in the railroad world. Rate wars, both passenger and freight, have broken out at times with much fury, covering vast areas of territory.

The organization known as the "Inter-State Commerce Railway Association," better known as "The Gentlemen's Agreement," organized for the ostensible purpose of preserving peace and business good faith among the competing lines, went to pieces, and several general officers of railroad companies were criminally indicted by a federal grand jury, for alleged violations of the inter-State commerce law.

A material and marked reduction in freight rates commenced in February and continued with more or less fluctuations through to December, reaching the lowest point in that month. So deep was this cut in rates, that on March 19 the local rates in this State were reduced by the several companies to a point considerably below the maximum rates fixed by the Commissioners, and so remained until August 1, following. These reductions brought with them the anomalous fact that there had been a gain in the earnings of the year of eight and one-half per cent over the year previous.

The Railway Age gives the following figures by months of the gross earnings of 1890, compared with 1889:

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bound over 1889. Increase of west

bound over 1889.

Decrease of east

Decrease of west

bound over 1889.

The Age, in commenting on these figures, says:

The steady improvement in railway earnings which was the feature of 1889, was continued through 1890 without a break, although it was feared that after the first half of the year, the comparison being with months which showed extraordinary earnings, the line of steady improvement might not be continued. This, happily, was not the case.

The reduction in rates began in February at upper Mississippi river points and at Missouri river points generally. The demand for coal was small, owing to the mild winter, and the earnings from this usually large tonnage source was cut quite short. Floods and storms in Missouri and Texas, strikes in the coal mines, the local absorption of the winter wheat crop by home mills and the financial disturbances in the latter part of the year, together with the continued rate disturbances, greater in the fall months than at any other period, all combined, failed to reduce the favorable showing. The unusually large grain crop of the northwest and west of 1889, which was largely marketed in 1890, tended strongly, however, to relieve the unfavorable conditions heretofore enumerated.

Increased earnings, following a marked reduction in freight rates, sharply challenges the attention of candid students of the "railway problem," and in this connection the result of reduced local rates in this State is given in the following tables:

EARNINGS FOR 1889 AND 1890 COMPARED.

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Four roads, only, show decreased tonnage in 1890, amounting totons......

Remaining roads reporting show increased tonnage of-tons..
Decrease

457,021 4,000,007

457,021

3,542,986

Net increase of tonnage for Iowa...

ROADS NOT REPORTING.

Chcago, Burlington & Quincy; Chicago, Burlington & Kansas City; Kansas City, St. Jo. & Council Bluffs; St. Louis, Keokuk & Northwestern, Burlington & Northwestern; Burlington & Western.

NEW ROADS REPORTING AND COUNTED IN ABOVE.

Tabor & Northern; Sioux City & Northern; Chicago, Ft. Madison & Des Moines.

Attest:

Respectfully submitted,

W. W. AINSWORTH, Secretary.

SPENCER SMITH,

Chairman.

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