H E o 771 46 o n UC-NRLF SB m N ^j o THE RELATIONS OF KANSAS RAILROADS TO THE STATE OF KANSAS NORRIS L. GAGE. TOPEKA, KANSAS. KANSAS PUBLISHING HOUSE: T. D. THACHER, STATE PRINTER. 1884. THE RELATIONS OF KANSAS RAILROADS TO THE STATE OF KANSAS. NORRIS L. GAGE. TOPEKA, KANSAS. KANSAS 1'UBLISHING HOUSE: T. D. THACHER, STATE PRINTER. 1884. "SUITABLE railways, honestly and sensibly managed, furnish the cheapest possible transportation; and can be supported by even the poorest communities." [FAKLKHJH. "THE railroads of the United States assure us commercial supremacy; make fam- ine impossible, and insure general prosperity and plenty, by carrying local surplus to the relief of local failure." [POOR'S MANUAL, 1883. STATEMENT OF THE FACTS, AND REVIEW OF THE SITUATION. THE management of the Atchison, Topeka & Santa F6 Railroad Com- pany have requested me to investigate the transportation question, as affecting the interests of the State of Kansas and the interests of the Atchison road, and to submit the results of such investigation to the Honorable Board of Railroad Commissioners. This request appears to have been made in consequence of certain- complaints now pending before this commission. It appears that the railroad law of Kansas requires two things first, that freight rates shall be regulated so as not to unjustly discriminate between individuals or between localities; and second, that such rates shall be reasonable. UNJUST DISCRIMINATIONS. No complaint, whatever, of unjust discriminations has been made against the Atchison, Topeka & Santa Fe Railroad Company, except in the case of Osage City as to coal rates, and this complaint seems finally to have resolved itself into a desire for reduced coal rates. (Since 4 this statement was prepared, the city council of Osage City has taken the necessary action to withdraw the complaint of that city.) Thus one entire branch of alleged abuses is eliminated from this hearing, and that, too, a branch which has everywhere given rise to the most numerous and most serious complaints. Heretofore, in the old countries and in all of the United States, the great cause of complaint has been alleged unjust discriminations, either between individuals or be- tween rival localities. The history of the railroad problem shows, that wherever and by whomsoever it has been investigated, it has been conceded that the precise range of rates was not a matter of so much importance to shippers and to the public, as it was to have them uniform under like circumstances and free from unjust discriminations. It has not been the result of chance, that* the adjustment of rates on the Atchison system of roads has been such as to avoid in the main charges of this kind, but it has been the result of great care and a scrupulous attention to the equities of the situation and the rights of all parties. This success has been attained in the face of the most severe and constant pressure and temptation on the part of many of its patrons in the di- rection of favoritism, and of itself tends strongly to show that the com- pany has been actuated by similar correct business principles when dealing with the other branch of the question, namely, that of REASONABLENESS OF RATES. Out of the many hundreds of townships and cities on the line of the Atchison railroad system, for which the law provides a cheap and easy way of making complaints, only three, and those with a strongly pro- tiounced division of sentiment, claim that their freight rates are not reasonable"; and these three cities only, to wit, Great Bend, Newton and Osage City, have entered complaints before the State Board of Com- missioners, as provided by law. At the other hundreds of townships and cities either no action whatever has been taken, or expressions favorable to the reasonableness of the company's rates have been given, and this after the law has been in force more than one entire year. It .appears, therefore, that no wide-spread or general dissatisfaction exists ^imong the actual patrons of the road, as has been frequently and loosely stated by persons who were either honestly ignorant of the real Situation, or who were influenced by considerations not creditable to themselves and not worthy of consideration by this or any other tribunal. This tends strongly to corroborate what the experience of the officers of this road shows to be true, that there is in the main a decided feel- ing of harmony existing between the road and its patrons, and especially o when we reflect that the nature, extent and variety of the business is such* that it is not possible to satisfy everybody. It is an axiom of gov- ernment, that its value' is largely in the content it gives; and this state of facts should have its full weight with the Board in deciding the three complaints which have been made. No doubt every patron of the road would like to have his rates cut down until they entirely dis- appeared, if it were possible; so also would the company, if it were possible; but this cannot be considered a complaint in any business or legal sense. The complainants in these cases advance no method whatever by which to decide this most vital question. They ask for lower rates on general principles, without assuming to prove whether the present rates .are or are not reasonable. The Board of Commissioners in its preliminary consideration of this subject has, however, set up two tests by which to determine the reason- ableness of the rates now in force by the company first, by compari- son with the rates prescribed by the Commissioners of Illinois in their revised schedule of 1882; and second, by an examination of the receipts and profits of the company. These tests may be accepted as fair ones, provided they are applied io Ti'ew of all the facts and conditions. It is plain that a direct compari- son of rates is misleading and worse than useless, unless we have a gen- eral knowledge of the conditions which govern them. The Board has not heretofore had its attention called fully to these conditions, and may not have given them that weight to which they are justly entitled. It will be conceded that all parties in interest have heretofore been acting, to a greater or less degree, in the dark as to the facts and the bearings of the law when applied to railroad business, and that the magnitude of the interests involved requires that the subject should now be considered,, as far as possible, in its entirety. KANSAS AND ILLINOIS RATES COMPARED. Freight rates should range higher in Kansas than in Illinois, for these reasons : No. 1. In the State of Illinois there are fifty-five persons to the square mile, while in Kansas there are only twelve persons to the square mile,, making the former State more than four-and-a-half times more densely populated than the latter. More than seventy-three per cent, of the land in Illinois is improved, while only about twenty per cent, of the land in Kansas is improved. In Illinois the population per mile of railroad is more than fifty per cent, greater than in Kansas. True, the railroad mileage per square mile of territory is not so great in Kansas as in Illinois; but if no impediment is thrown in the way by the State, and even a part only of the roads are built which ha.ve recently been inaugurated, competition among railroads will very soon be as intense in Kansas as in any part of the country, if indeed it be not so now. No. 2. The live stock traffic in Kansas is in the main spasmodic, and not continuous. During the cattle drives from the South, and the annual "round ups" in the West, this traffic has been large for about four months in the year, while during the balance of the year most of the stock cars, and their motive power, remain idle. Seventy-four per cent, of the entire cattle movement on the Atchison road in the year 1883 was made in the four months of August, September, October, and November. About six times as many cattle cars are required during those four months as are required during the other eight months. As this is not a dull time on other roads, it is not possible to hire cattle cars during this period, and the result is that during eight months in the year miles of side track are filled with these idle cars, a few being forced at an additional expense into lines of business for which they are 6 not adapted. Everywhere east of the Missouri river it is a fat-cattle traffic, and very nearly continuous during the year; and these condi- tions, so much to the disadvantage of this road, only exist on a few roads west of the Missouri line, which run out and tap the great grazing fields. It is clear that a live-stock business of this character cannot be done as cheaply as a continuous business, and it is also clear that it would be better for the road, for its patrons, and for the State at large (while injuring no one) if during such dull periods the company could use this extra motive power on heavy and special kinds of work which admit of only the lowest prices such as filling "stone contracts for public works and the like without subjecting itself to a multiplicity of suits for dis- criminations, as might be the case under the present law if rigidly en- forced. This illustrates the kind of commercial freedom which the company asks upon every principle of equity and economy, and for its patrons as well as for itself. No. 3. Railroad transportation cannot be sold in Kansas as cheaply as in Illinois, for the same reason that groceries, hardware and agricultural implements cannot be sold as cheaply. Distance from the base of sup- plies is the important element which enters into the cost of everything of a heavy or bulky nature. It would not be fair for the dealer at Osage City, at Newton, or at Great Bend, to be forced by law to sell these articles at Peoria or Galesburg prices; and it would be an additional hardship if he were forced to remain in business at all hazards and without regard to profits, as is the railroad company. No tribunal having power to fix the prices on merchandise should exercise it in such a case except under the most severe provocation, and then at a most conservative limit, even though there might be a unani- mous desire on the part of the purchasers to secure the articles as cheaply as possible. Iron, steel, machinery, lumber, railroad ties, tools, oils and supplies of all kinds are, and always will be, dearer in Kansas than in Illinois. No art or legislation has yet been able to overcome this law of nature. Railroads themselves have come the nearest to it, as is shown by the fact that without them the great bulk of Kansas to-day would necessarily be without towns or farms, and its occupancy contested by cattle herders and Indians. Justice to themselves as well as to the rail- roads require that the Commissioners and the people of Kansas should not ignore this fact. No. 4. By far the largest single item of freight shipped on Illinois roads consists of coal. It fs of a high steam-producing quality, and is found in large quantities nearly all over the State. Immense shipments are being made in continuous volumes to Lake Michigan, the canals, the Ohio river, and the great manufacturing centers within and adjacent to the State. Every one knows that the cost of moving coal diminishes rapidly as the amount increases and the shipments become uniform, un- til what are known as the "coal roads" reach the lowest limit of cost. On the line of the Atchison road in Kansas, coal is produced and shipped in comparatively small quantities. Of the total product in the year 1883, seventy-one per cent, was during the six winter months, and this, no doubt, fairly represents the movement in the summer and win- ter months. It cost, in 1883, on the track at the points of production, an average of $2.48 per ton, while the average cost on the Chicago & Alton, the C. B. & Q,., and the Wabash roads, for the same year, was $1.40 per ton, as per statement herewith submitted. Taking quality into account, the Atchison road paid more than twice as much per ton for its coal as was paid by the great roads in Illinois. On the total amount >used by the company in Kansas in 1883, the difference would amount to about $250,000. To this extent, on that one item, in one year, nature discriminated against the Atchison road compared with an Illinois road. The pro- ducer, as well as the carrier, must submit to such natural discriminations, believing that they are just, or at least unavoidable, and that the dif- ference will be made up in other ways by the great laws of compensa- tion, such as relative cheapness of our lands, and rapid development of our State compared with other States. With us, coal is used mainly in the winter season, and for domestic purposes, and for quality, quantity and cheapness of production cannot be compared with Illinois coal. This necessary high price of coal is a fact of as much importance to the Atchisou road as a consumer as it is to the other consumers along its line. If the road was as favorably situated with reference to coal as are the great roads in Illinois, it would be of incalculable value to the road itself, as well as its patrons; and it could afford to move it at Illinois rates, while all other rates could also be reduced. It will be seen that there are three reasons why coal cannot be moved at as low a rate in Kansas as in Illinois first, smaller volume of move- ment; second, less uniformity of movement; third, greater cost of the coal consumed by the road in the movement. The last reason is also a material element in enhancing the cost of all freight and passenger move- ments on this road. No. 5. A glance at the map of the United States will show that Illi- nois is so located, and the railroad routes east and west are so established, that the vast commerce of the great West, Northwest and Southweast, each an empire of itself, is poured to and fro in ceaseless volumes across that State. The same remarks apply to Indiana and Ohio rates. It 8 goes and comes by the unbroken train-load, and costs those roads very little in the way of original investment or of current expenses to gather it up, compared to what it has cost the Atchison road to gather up and in most cases to actually create its through business from the west; and in this way the roads of that State are assisted by their location, and have means of reducing local rates accordingly. No. 6. There are other special reasons, each of a material character, which operate against the cheapness of rates on the Atchison road, such as, liability to drouth in some parts of the State, the high percentage of land unfitted for cultivation, and destructive effects of lime and alkali water on boilers and machinery. A set of locomotive boiler flues lasts three years in Missouri or Illinois, and only eight months in Kansas. It must be conceded that these differences are substantial; that they are based upon sound business principles; and that they appeal to the common sense of every intelligent man. INTERNAL EVIDENCE. There is also a mass of internal evidence, not dependent upon com- parisons, going to show that Kansas rates are reasonable, and some of which should be noticed. Every road in the State, except one, has been forced by these rates into bankrupcty. At present, on no Kansas road will Kansas business more than pay running expenses, fixed charges, and keep the road up in repair. But few of them can do that much, and not one can pay a dividend on Kansas business. Except the Atchison road, not one of them has been able to stand alone, and not one of them could do so now except for the aid it receives from its stronger foreign allies, who live in hopes of a better future. Even the Kansas Pacific, with the aid of its Colorado business, became so poor that it could not furnish facilities for the convenience and safety of its patrons, and finally ceased to exist as an independent road. These results mainly were the necessary product of the situation, and could not have been avoided, when the rates and amount of business are considered. On all Kansas roads, during all these years, the rates have constantly been decreasing and have not materially varied compared with each other. The desperately bad condition to which some of them have been driven in the way of facilities for the comfort, convenience and safety of their patrons, is becoming known to your Board. That the Atchison road is an exception to this rule, may be accounted for by reasons which will appear further on. None, except those entirely ignorant of the rudiments of the subject, have ever pretended that the rates on local freight gathered up along the line of a road, should be as low as through rates on the great trunk 9 lines between important points, where the large volume of business, its continuous supply, competition by water and rail, assurance of return freight, absence of local station charges, and many other circumstances, make low rates possible. It can readily be seen that rates from points west to the Missouri river cannot be as low as those from the Missouri river^ to Chicago, and that the latter cannot be as low as those from Chicago to New York, nor the last as low as those from New York to Liverpool. It is equally true, and for the same reasons, that rates between intermediate points both of which are within any one of these great di- visions, can be made less as we go east, because it costs less to do the business, all things considered. The relative low price of lands and all real estate at local stations- and in remote sections, compared with prices near great competing cen- ters, has been long fixed with reference to this law of transportation. Take land in central Kansas, which will produce sixty bushels of corn or twenty-five bushels of* wheat per acre, and compare it with land of equal productive capacity in central Illinois or central New York, and the disparity in prices will be enormous. The present disparity between rates is not so great as that between prices of land at those three points, as is shown by the enormous emigration to this State. That is to say,. Kansas rates are the cheapest, all things considered, or the tide of emi- gration would be reversed. It is in the interest of Kansas roads, as well as of the State, that this condition should be maintained, and it is not right, by summary action in the interest of one party only, to force rates down to a point which will make the disparity still greater, when it is at present enormously in favor of Kansas growth and development* We submit, therefore, that the facts, first, that Kansas rates permit a development nowhere equaled, and second, that Kansas rates on Kansas business do not pay expenses, furnish internal proof not dependent upon comparisons which may be faulty, that the Atchison rates comply with the law which requires them to be reasonable. THROUGH AND LOCAL RATES. It may not be out of place to notice here the statements which are sometimes made, that rates from local points are too high, compared with the low rates which are made for longer hauls between great com- peting points, and that, if the roads can afford to do the competitive business at the low rates received, they can afford to do local short-haul business at corresponding rates. Now the facts are, that nearly all railroads have to earn a large part of their living from their local business, and are obliged to take the through or competitive business for whatever profits they can make out 10 of it, or not take it at all ; and to the extent of their net profits on their competitive business over and above actual cost of the train service, they can reduce their local rates. A competitive point is one whose location, or water communication, or numerous railroad extensions to different markets of the world, are such that the town has power to dictate to a given railroad its rates from that point. The road should be allowed, in the interest of its local patrons, as well as in its own interest, to accept the^business at even this low rate, if it can make even a small profit from the same. Deprive the road of that small profit, and then it must necessarily exist alone on the local business. The road is constructed through to the competitive point mainly for the purpose of doing the way business. Its fixed charges, in- terest on bonds, taxes, maintenance of way, etc., go on year after year, whether it takes or refuses the competitive business. If it is forced to reduce its way business to a mileage rate corresponding with the rate which the competitive point, on account of its location, can force it to take, it is robbed of its sustaining power, and must go into bankruptcy. Sooner than accept this alternative, the road would be obliged to give up the thorough business, and maintain itself on its local business. If it charges only a fair rate to its local patrons, a rate very much less than they could get in any other way, it seems plain that it should be allowed to take business at the competi- tive point at any rate which may be forced upon it, provided it yields a profit above the naked cost of the train service. It is that or nothing with the road. As before stated, such through business can be and should be done materially cheaper than a scattered local business; but wherever the through rate is cut down to a point below what it should be, compared to the local rate, as between Kansas City and Chicago, or Chicago and New York, it will be found that such low through rate was forced upon the road by a power over which it had no control, as in the former case by the rival route to the world's markets, the Missouri and Mississippi rivers, and in the latter case by the Great Lakes and the Erie canal. Now, while the through rate on grain from Kansas City or St. Louis to New York is lower than it should be, compared with local rates, and is lower than the rates from local points on the roads, which points are nearer New York, still those roads must take the grain at whatever prices the rival river route to the ocean dictates, or leave it alone. If the through rate pays even a small profit above actual cost of the haul, it helps the road that much, and it helps the local patrons that much, as th f e roads must be kept running by some one; and more than all others, it helps the Kansas farmer. The tendency of railroads when left alone is always to give long-haul shipments the preference, 11 . and any inter-state commerce legislation by Congress will inevitably tend to increase the rates between the Atlantic seaboard and Kansas; and while it may help some intermediate State, it will injure the Kan- sas producers. This same sound business consideration is sometimes presented to a road on its State business. Same natural product remains dormant, or is going to decay. It cannot be utilized by its owners at rates which are required on the mass of busines^ in order to keep the road running. But the somewhat less rate which it can pay will make a little profit to the company (above the cost of train service), considering that the fixed charges of the company (about fifty per cent, of entire expenses of the road) are going on whether this particular business is or is not taken. Now if this product does not come into competition too much with pro- ducts which are paying full rates, it may be best for all parties that it be encouraged. There is a perfect maze of facts, figures and conditions which bear upon each one of the numerous applications of this kind which are constantly being made to a great system of roads, and there is an exceeding reluctance on the part of any management to enter into this branch of rate-making; for however wise the result, it will be sub- ject to hostile criticism by those who are not educated into a perfect knowledge of the entire situation. I have given ample reasons why rates for all distances on the Atchison road should be materially higher than those of an old State like Illinois, and have pointed out internal evidence, which, if it does not absolutely prove, at least raises a strong presumption that such rates are rea- sonable. RAILROADS THE FRIENDS OF LONG-HAUL TRAFFIC. Notwithstanding these decided disadvantages with which the Atchison road has had to contend, the Board of Commissioners, in their prelimi- nary consideration of January 1st last, show that for the first seventy miles west of the Missouri river, these rates are substantially as low as on roads of the first class in Illinois, and should not be disturbed the Illinois rates having been prescribed by State commissioners who had ample powers conferred on them by law, who were acting in the interest of low rates, and who, it is claimed, were traffic experts. The fact that the Atchison road, with the odds so largely against it, has voluntarily made a very low rate for these distances, certainly does not show a grasping disposition on the part of the road at points where it might have been exercised as freely as at any other points. The facts will show that for longer hauls those rates have been placed equally low, all things considered. In this connection, it should be remembered what the road has already 12 done voluntarily in the way of equalizing the charges for long hauls compared with the charges for short hauls, and of placing towns remote from the Missouri river on an equality with towns nearer the river. From Great Bend to the eastern terminus of the road at Atchison, the distance is about 269 J miles, and the rate on cattle is 35 per car, on wheat 23 cents per 100 pounds, and on corn 14 cents per 100 pounds; while the distance from Topeka to Atchison is about 50J miles, and the rates'are, respectively, 20, 9 cents, and 8 cents. It will be seen that, while the distance from Topeka to the Missouri river is only about 19 per cent, of the distance from Great Bend to the Missouri river, the Topeka shipper pays about 57 per cent, as much on cattle, about 40 per cent, as much on wheat, and about 57 per cent, as much on corn as the Great Bend shipper pays*. In other words, while Topeka pays 40 cents per mile per car of cattle, Great Bend pays but 13 cents per mile per car; while Topeka pays 3J cents per ton per mile on wheat, Great Bend pays but 1 T 7 ^ cents per ton per mile; and while Topeka pays 3^- cents per ton per mile on corn, Great Bend pays but 1 cent per ton per mile on corn. The reasons why these large percentages in favor of the ship- per for long distances are not always the same are susceptible of explana- tion, and have been, as I am informed, heretofore set forth to your Board. The percentages in favor of shippers in central and western Kansas, compared with those nearer markets, also exist in a similar way on all freights on the Atchison road, and to and from all the great markets east, with which nearly all Kansas business is done. If this stock was driven, or if this freight was carried by wagons or by any other appliances known to man, it would cost very nearly a given price per ton per mile, be the distance long or short. Thus it will be seen that the great discrimination which nature set up in the way of the settlers of the more remote parts of Kansas, but which did not nevertheless prevent them from seeking those fields, has been in great part already removed by railroads alone, when it could not have been removed by any other power. And further, U will be seen that the charges made by the Atchison road from points within seventy miles of the Missouri river, while in themselves reasonable as stated by the Commissioners, "judged by any standard of comparison," are still enormously higher in proportion to the distance than are the charges from more remote sections of the State. The passenger from Coolidge, Dodge City, Great Bend, or Newton, pays as much, mile for mile, as the Topeka or Lawrence passenger pays, and no complaint is made. In the early history of railroading, freight charges were made on the same basis, but steadily year after year, the railroads have thus voluntarily, even on local freight where there is no 13 competition, annihilated distance, and placed remote sections vastly nearer markets than the distance away would justify when measured by the surveyor's chain. RATES FOR EASTERN AND WESTERN KANSAS. But the complainants ask the road to place them still nearer the Mis- souri river compared with places within the first seventy miles of the road; and it is found that local rates for long hauls on the great roads of Illinois are lower than they are in Kansas. The roads of Illinois have always insisted that their rates for long distances were placed too low. I know nothing as to that, but if there are not good resons why the Illinois rates should be lower than Atchison rates for long distances, then the Atchison road, I have reason to believe, will voluntarily agree to reduce its rates accordingly. The Atchison company did not fix its rates on the first seventy miles of its road as low as Illinois, and for longer distances somewhat higher, simply by accident, or from choice, or on account of friendship or enmity to any part of the State, but they were so fixed on sound busi- ness principles and from necessity; and if any power on earth can be devised to remove, or evade, or still further reduce the discrimations set up by nature, it will be as much for the interest of the company as for its patrons that it be at once employed. Almost every fact.advanced to prove that railroading in general and for all distances is more expensive in Kansas than in Illinois, applies with greater force to show that the longer distance hauls on the Atchi- son road are specially expensive. First. The eastern seventy miles of the State is more than four times more densely populated than the remainder of the State. There is no such local disparity in population between localities in Illinois as appears in Kansas. This difference in population not only indicates to some extent the difference in volume of business, but it is a fact which will be apparent to anyone on reflection, that all the large number of ex- penses which go to make up the entire cost of handling a business, large or small, are less in an old-settled and densely-populated country than in one sparsely populated. Second. Every great road in Illinois terminates at both ends on navi- gable waters and at great trade centers, or passes through great trade centers near the borders of the State. This not only increases the aggre- gate volume of business, and reduces the expense of transacting it, but it puts all parts of the road nearer a base of supplies, a factor of no small importance, as before shown. If St. Louis, with its markets, its prices, its surroundings, its cheap supplies of lumber, railroad ties, iron 14 and coal, was at Coolidge or Dodge City instead of where it now is, with a cheap, direct and independent water-route outlet to all the great markets of the world, how plainly would the situation be reversed. With a rival base of supplies for the western divisions of the company, rival markets for provisions, live stock and produce at various points on the road, this long-haul State traffic would largely become short-haul traffic, with the short-haul prices which the road is now getting, and which are conceded to be fair. Third. The volume of business on the Eastern Division of the road ending at Emporia, is enormous compared with the volume of business on the western part of the road. For example: For the four weeks end- ing January 26, 1884, there originated on the Eastern Division (about 357 miles) 6,137 cars of freight, and on the other 625 miles of road in the State only 2,737 cars. While each mile of the Eastern Division furnished 17.2 cars per mile, only 4.4 cars per mile were furnished by the western divisions. In the one case there are many less stations to transact a much larger business; the help is employed more steadily ; there is less loss of time; the cars are more apt to be loaded to their maximum ; there is less empty-car hauling, as there is more return busi- ness; and there are many other tangible elements of saving. In short, in one case, it is a condensed wholesale business, transacted on only about one-half the mileage, with a corresponding small amount of money invested in the roadbed, and with every 'appliance at hand, compared, in the other case, with a business of about one- half the amount, scattered over about twice the territory. In all other industries known to man, it would be regarded as just, to consider these elements of cost, and there is no reason why they should not have equal weight in the present case. The cost of one mile of this western road was about the same as a mile of the eastern road, and by far the greater expenses of sustaining a railroad do not vary with the amount of service rendered, but are in the nature of what are known as " fixed charges/' such as taxes, interest on cost, and maintenance of roadbed, and go on year after year, whether more or less business is done. It is not prac- ticable to ascertain the exact cost of business on each of the two great sections of road above named, but it is sufficiently clear, from a com- parison of the sura of those distances, and a comparison of the relative amount of business in each case, and of the rates charged per ton per mile in each case, that if there has been any discrimination shown by the company, it has been in favor of the western part of the State. Fourth. An ordinary heavy freight engine can haul on an average fifty loaded freight cars from Topeka to Kansas City, the terminus to which the greater part of all shipments are made, while the same engine 15 can haul on an average only eighteen loaded cars from Eraporia to Topeka, and only twenty-five loaded cars from Nickerson to Emporia. A mere statement of this fact renders comment unnecessary. The Atchison company should not be held responsible for the hills encountered in Osage and Lyon counties, nor for the hills, only a little less prominent, still further west; although it has reduced them as much as is practicable, at great cost and labor. COMPARISONS WITH OTHER STATES. Having stated some of the reasons why railroad rates in Illinois can be made lower than in Kansas, it will be proper to institute a few ad- ditional comparisons with roads whose cost of business is more on an equality with the cost of business in this State, and I herewith submit to the "Board of Commissioners for examination and comparison tabu- lated and authenticated schedules of the rates which prevail on a num- ber of well-known roads, located in sections of the country where the surroundings, business and conditions are nearest like those of the Atchi- son road. The Board will find that the rates on the eastern divisions of the Northern Pacific road average from 20 to 90 per cent, higher than those of the schedule on which the Atchison company has done the greater part of its business in this State. The schedules in force on some of the chief roads in Nebraska, a State where the Legislature has assumed the power to regulate rates in part at least, range from 20 to 60 per cent, higher on nearly all classes of freight and for nearly all distances, than the Atchison local tariff. The Milwaukee & St. Paul schedule for Iowa State business aver- ages about the same as the Atchison schedule on produce and livestock, while it is somewhat lower on merchandise for long distances, and higher for short distances. The inter-state tariffs of this road, and of the Chicago & Northwestern road, and of the Chicago, Rock Island & Pacific road, which tariffs also govern business between points in Minnesota, range decidedly higher than the Atchison tariff for corresponding business. Rates on the Burlington & Missouri River road in Nebraska, on the great bulk of business, average from 10 to 20 per cent, higher than the Atchison rates. The distance tariffs of the Missouri Pacific road and of the St. L >uis & San Francisco road, when applied to terminal business, are noticeably higher than these tariffs for corresponding business. Lumber, it is true, is lower per hundred pounds in Missouri, but Missouri lumber consists mostly of heavy pitch-pine and oak, and the difference would 16 disappear when compared per thousand feet with soft lumber. The Missouri Pacific inter-state tariff, for most of its system, is very much higher than the Atchisou tariff. On no class of articles are the Atchison rates higher than the rates which prevail on the great Louisville & Nashville road, and for most classes they are noticeably lower. The Louisville & Nashville tariff has been approved by the State Commis- sioners of Alabama as reasonable for the roads of that State, as evidence herewith submitted shows. Moreover, on this road and on most other roads where these comparisons are made, it is customary to make the charge for shipments from points on their leased lines to points on the main line, and vice versa, equal the sum of the two rates, which still increases the charges, a practice which never prevailed on the Atchison system. The Atchison local rates average lower than the rates of the Mis- souri, Kansas & Texas road, and also lower than the rates of the St. Paul, Minneapolis & Manitoba,, a road running into the heart of the great Red river wheat regions. The same holds true with the Han- nibal & St. Joe rates. The rates prescribed by law in Wisconsin on most shipments, nota- bly on live stock and produce, are from 10 to 30 per cent, higher than Atchison rates. Some of the above tariffs, though in name dis- tance tariffs, are in fact combination tariffs, under which all business of the respective roads to terminal points is transacted, as for instance to St. Louis; and taking into account the small amount of business be- tween intermediate points, such tariffs should be more properly com- pared with the Atchison rates to and from Missouri river points. But it should be remembered that the greater part of the so-called State business of the Atchison road is in fact inter-state business, ter- minating at Kansas City, in Missouri, over which Kansas has no control. Now, when the inter-state tariffs of the great roads in the west are compared with the rates which the Atchison road has been receiving for this inter-state business, the difference is still more largely in favor of the Atchison rates. True, there is a class of inter-state business moving in large volumes from competitive points on the Missouri and Mississippi rivers, or from points on the Great Lakes to the Atlantic sea- board, which is not done in the main under the above inter-State tariffs, but which is moved at any price which may be forced upon the roads, provided it is a little above the naked cost of the train service, as here- inbefore explained. A reference to the census returns, and to Poor's Manual, will show that Wisconsin, Iowa, Missouri, Arkansas and Tennessee, where these State and inter-state tariffs take effect, are much older States than 17 Kansas, and have a greater density of population per square mile than Kansas, and also a larger population per mile of railroad than Kansas; and there can be no doubt, as before stated, that the lower rates which Kansas has enjoyed, compared with these States, accounts in part at least for the financial failure of so many Kansas roads, and also in part for the recent and present more rapid development of Kansas than of other and new States like Minnesota and Nebraska. The statistics of these States, all of which are old-settled States compared with Kansas, and all of which admit of a greater uniformity of settlement than Kan- sas, are as follows: STATES. Population per square mile. Population per mile of railroad. 29 234 33 482 37 746 15 523 24 344 12 234 Minnesota and Nebraska, though settled as early or earlier than Kansas, and similarly situated with reference to the capacity for uni- form settlement, have not advanced as rapidly in population as Kansas, and the greatest known factor in this difference is the lower rates which Kansas has enjoyed. It will be found that wherever comparisons are made with a fair understanding of the surroundings and conditions, the conclusion is clearly in favor of the view that Kansas has enjoyed rea- sonable rates. Minnesota, Nebraska and Texas are the only States sit- uated like Kansas for purposes of comparison of rates. Wisconsin, Iowa, Missouri and Arkansas are more favorably situated as to popula- tion, volume of local business, convenience to base of supplies, etc. But the above four States are all about equally distant from a base of supplies, are all somewhat densely populated, for such i new States, in their eastern parts, and all extend out onto the Plains in a similar way. Still, if the eight States are taken together, it will be found that local business on the Atchison system is and has been done at decidedly the lowest rates. Comparisons have been made of charge per ton per mile of the total traffic of the Atchison road for the year 1883 with the charge per ton per mile on the total traffic of certain great roads entering Chicago, whose business is confined almost exclusively to the States of Illinois, Iowa, Missouri, Wisconsin, and Minnesota. The unfairness of this test will be conceded when it is remembered that more 'than one-half of the Atchison system extends over plains, 18 deserts and mountains which furnish a meager business, and where the necessary high charges per ton per mile go to make up a much higher charge per ton per mile on the total traffic than would be the case if business in the State of Kansas alone was taken into account. The fact that certain points in central and western Kansas furnish only two, three or four articles to ship in any quantity, for example, wheat and live stock, or corn and livestock, and that New Mexico fur- nishes only two articles in any quantity, to wit, silver ores and wool, has been set up as a reason why the road should make the rates on those articles very low, in the interest of the producers of the same. So the road would no doubt, if it were possible, but the very fact of there be- ing no diversity of production renders the transaction of what business there is more expensive for the road. If agriculture flourished in New Mexico along with its mines, or if mining or manufactures, or even a more diversified agriculture existed among the farmers of western Kansas, the entire traffic, as can readily be seen, could be disposed of on a lower scale of rates than at present. Another mistaken idea has been advanced in connection with these hearings, namely, that the percentage in decrease of rates should equal the percentage in increase of business. Now no doubt the cost of mov- ing freight, that is the naked train expenses, does decrease in such ratio, or perhaps in greater ratio; but about 50 per cent, of the entire amount of all rates goes to pay the fixed charges of the road, such as interest and taxes. These fixed charges cannot be diminished, however large the traffic. If the business should increase 100 per cent, and the rates should decrease 100 per cent., the goods would go for nothing. FACTS TO BE CONSIDERED IN DECIDING THE QUESTION OF SEASONABLE PKOFITS. It must be conceded that it is a business problem of great magnitude, to determine whether the power of this road to earn receipts should re- main where it is, or whether it should be abridged, and if abridged, to what extent; also, whether this power should be exercised, if at all, by the Federal Government on inter-state commerce, or by which one of the seven States and Territories into which the system extends. No business problem of this magnitude can be rightfully treated with- out a knowledge of its surroundings and history. It will therefore be necessary to allude briefly to a few general and controlling features which govern the present situation. The company which built up this great system of roads in a field where all other railroad efforts had failed, and in a country where no similar effort has succeeded to the same extent under like circumstances, has constantly kept in view the im- 19 portance of imposing its necessary burdens among these seven political divisions in the most equitable manner, to the end that each should bear only its due share; and this by the aid of skilled and experienced agents, many of whom have grown up with the road, and whose duties enable them to examine the entire field to the best advantage. But with Kansas as its base of operations, there can be no doubt that it has, necessarily in many cases and voluntarily in other cases, conferred upon this State vastly more incidental benefits, in proportion to its Kansas receipts, than it could have done had the system been built only to the west line of the State, and also vastly more than it has been able to confer upon the States and Territories farther west. This was, to some extent, the inevitable result of the situation, but to a greater extent it was the result of the mutual friendship and har- mony of the people and the company, both working for the same re- sult the development of the State and the enhancement of all values. The benefits thus conferred are seen from the east to the west line of the State, in substantial fences, bridges and roadbed, in superior equip- ment, and in commodious roundhouses, depots, offices, machine and repair shops. Improvements of this character have not been made solely from selfish considerations, for they are of equal value to the patrons of the road, as promoting the comfort, convenience, certainty and safety of travel and business, to the communities among whom the money for their construction was distributed, and to the road itself. Your commission has heard the complaints and seen the effects on a community of a poor road in bad repair, and can appreciate the differ- ence in value to the people of a well-preserved compared with a de- crepid railroad. Every intelligent community requires its railroads to be kept up abreast of the times, knowing that in the end it can thus do business cheaper, with more satisfaction to all parties, and assist the growth of their country. While the rates in various States and Territories of this system have been adjusted as nearly as possible with reference to the actual cost in each case of rendering the service, it can readily be seen that Kansas has been largely favored as the recipient of incidental benefits, and it is a notorious fact that the management of the road have always given Kansas the benefit of a doubt in these respects, and spent large amounts of money in helping to build up the State when it might with more propriety have gone elsewhere. Two conclusions result from this state of facts: First. It is fair to presume that a State thus voluntarily favored in these respects has been at least put on an equality in the way of rates with the other States and Territories and with inter-state business, and 20 the records of the company confirm this presumption to an extent little understood by the people of Kansas. Second. That common fairness and public policy require that an en- terprise which came into the State at the unanimous request of the people, which has performed its service at rates which have from time to time been voluntarily and largely cut down, and which has con- ferred such valuable incidental benefits, should at least be allowed to hope for profits equal to the best that can be expected from enterprises of less public benefit, such as loaning money on mortgage, and invest- ments in real estate. It should also be remembered, that each of the other six States and Territories embraced in the Atchison system may claim the same right to cut down charges after the system of rates has once been broken into by the State of Kansas; and also that the Federal Government is threatening in like manner to cut down inter-state charges, and already, only a few days ago, a bill passed one branch of Congress reducing by one-half the regular charges for carrying the United States mails on the Atchison road. It would be an act of common justice between sister States and Territories, and it would distribute the inevitable burdens of life more equitably and protect the future usefulness of this great prop- erty, to have whatever reductions future developments may show to be possible made uniformly and by the road, with all things considered, rather than to have the system broken in upon by one State or Territory, without regard to the condition or rights of the others. Looking over the history of the State and the history of the road, the relations of the two, and the reductions of the past, there can be no dan- ger that Kansas rates will suffer in the future by comparison with the others. Again, it is a principle of political economy, everywhere recognized as based upon common sense, that every financial enterprise should have an opportunity for profits, if it succeeds, corresponding to the risks which it assumes. Without such fair corresponding chances, all pro- gress would cease, and a dead level of inaction would stay the advance of civilization. Now, it is a notorious fact that, as a whole, there have been immensely larger losses and bankruptcies in railroad investments in Kansas than in any other, class of business. The ardent projectors under-estimated the cost of the roads; they over-estimated the business; they built ahead of the times; they were urged on to their work by the united voice of the people; they failed to discount the drouth and other scourges which subsequently visited the State; and they were offered a a charter which conceded to them the privilege of making their own rates, which charter at the time everyone believed to be a valid con- 21 tract, under the Dartmouth College decision of the Supreme Court of the United States. It will be seen that the risks were enormous, and the signal and almost uniform failures confirm this fact. I do not refer to this for the purpose of entering up a claim for corresponding profits, as might well be done, but this matter of public history is an element which common justice requires should not be lost sight of in approaching the question of profits. There is no doubt, also, but that public policy requires that enter- prises should be encouraged in proportion to the benefits which they confer on the people. An enterprise of doubtful moral tendencies, or which draws its sustenance without dispensing public benefits, should be treated by the law with a jealous hand. Now railroads, as was once stated by this Board, "have done more perhaps towards securing to this State its present prosperity than all other enterprises combined," and judged by this test should be allowed corresponding profits com- pared with any and all other investments. Again, whether a railroad property or any other property deserves to have its receipts increased or diminished, is a question not dependent solely, or even mainly, on the dividends which may have been declared for a short period of time, but it depends in a large degree upon the chances for earnings and net profits in the future. In the present case the opinion of the investing public at a time when capital is seeking investments, is on record in the fact that Atchison stock is openly sell- ing at from seventy-five to eighty cents on the dollar, while other roads further east, paying the same dividends, but whose future is deemed more assured, sell at par or largely above par. The past five years have been years of exceptional prosperity and activity, especially for railroads. Nothing like it was ever before known. A wonderful business impetus seized hold of the people after the pre- ceding season of depression, and at least an ordinary decade of business * advance was crowded into one-half of the usual time. The Atchison road has shared in this prosperity. It received large sums of money for carrying the railroad material which this company and other friendly companies were constructing in far distant localities during these pros- perous years. This freight money did not come from the pockets of the people on the line, but from the construction account of the new roads. These roads are now nearly all completed. It would be an exception to all history if the law of reaction was not now felt. The only question is as to its severity. Exceptional crops in Kansas, and exceptional efforts on the part of the railroads, combined with a partial failure in other 22 States, will enable this State, we hope, to make a good showing again this summer. If this development can be continued in the future, so- much the better for the State and the company, and freight rates should then be and no doubt would be made accordingly. But the history of Kansas and of the road for the ten years imme- diately preceding this last era of five years, taken in connection with the ordinary reaction which follows in the wake of such a wave of in- dustrial activity, demands that such an enterprise upon which so much and so many depend should be conducted upon conservative principles. The processes of a great and far-reaching enterprise like this should be like the processes of nature, gradual but reliable, and eager haste in the one case, like a hot -bed method in the other, may not prove best for the railroads, for the State as a unit, or for the people. We do not wish to predict drouth, distress or any scourge of nature. They are bad enough when they arrive, but common prudence, when the hopes and subsistence of so many thousands are bound up in an enterprise, requires a reason- able preparation for that reaction which all experience shows will come- in a greater or less degree. Railroad business is also peculiar in this: Other business enterprises- have the privilege of accumulating the largest amount possible in times- of prosperity, unrestricted by law, and if a dull time comes in that par- ticular line, they have a margin of profit on which to reduce prices, or they can change into other business, or if needs be, shut down for the time being without special loss, and start up again at any time, not limited as to prices except by competition. But when any general decline i& made in railroad rates, if continued for any length of time as a basis on which to sustain the road, experience shows, as this Board is aware, how difficult it is ever again to make a general advance, however just and necessary it may be that the advance should be made. It is difficult to- even adjust or level up a rate on a particular article at a particular town, when by accident it has been thrown out of its true relation to other rate* at other towns. Suppose rates on the Atchison road should now be cut down on the basis of the present business and present expenses of the road, so as to cut off or materially interfere with the present moderate surplus which the company is endeavoring to provide during these pros- perous times, after paying its dividend of six per cent., then what would follow in the not improbable event of other States and Ter- ritories cutting down rates, or of the Federal Government interfering with its inter-state commerce, or of a business reaction setting in, or of drouth or distress of any kind affecting the people, or of the roads being stricken with floods, or disaster, or accidents involving loss of life and property, from which this road has been so free for the past few years,. 23 but which are so imminent on a line of road of nearly 2,000 miles. As an example, during the past month, a railroad connecting with the Atchison system lost a sum estimated at from five hundred thousand to one million of dollars as the damage inflicted by a few heavy rains in Arizona and southern California, while the well-known Ashtabula dis- aster cost the Lake Shore road in direct damages about one million of dollars. The road cannot insure itself against these losses, and the State will not insure it against them. It cannot advance its rates during a public distress, or during its own distress, above what the public are ac- customed to. It cannot change its business, and it cannot go out of business. It will be seen that it absolutely has no recourse in events of the most probable character and within the range of the most common experience, unless it be allowed to accumulate a reasonable surplus in prosperous years. It cannot be presumed, when this whole subject is examined on busi- ness principles and in view of all the facts, that either the people or the State will deem it just to place an enterprise wtyich has been such a great benefactor to the State, directly and indirectly, in so close a place, with the odds all against it, as though it were a malefactor or a public ^nemy; neither can it be presumed that the people or the Board of Commissioners ever so intended. In determining, then, the question of what now constitutes fair pro- fits, these material elements of the problem must be taken into account: First. Railroads have conferred more benefits upon the State than all other causes combined. Second. While performing its regular duties to the public, the Atchi- fion road has also conferred upon the State incidental benefits of great value, and more than its Kansas business, compared with its entire busi- ness, would justify. Third. One State or Territory should not cut off receipts, unless all the other political powers having jurisdiction could at the same time cut off receipts to an equal extent, and then leave the company its fair margin of profit. The burdens at present being uniformly distributed and divided upon principles of equity, they should remain uniform. Fourth. Profits should be allowed in view of the enormous risks which were incurred risks which for several years threatened to over- whelm the entire property, and during which the stock became worth- less, and the first-mortgage bonds sold for less than one-half their cash cost. Fifth. Whether receipts should be cut down depends not entirely or mainly upon the immediate profits made during a period of exceptional 24 prosperity, during which all other profits and increase of values were also- large, but upon the future chances, examined in the light of the past history of this company and of such enterprises. Sixth. Reductions cannot be made with a view of again making advan- ces in the event of the enterprise becoming unprofitable. A step which cannot be recalled if it proves unwise, should be taken with great cau- tion, especially if it seriously affects an important and deserving inter- est. The considerations above presented are based upon the theory that the business of this Atchisou railroad was business lying within the State of Kansas only business which arose out of and was dependent entirely upon the State development; but when we come to view the real facts in the case in connection with the business of this great through line, we are forced to the conviction that legislation which is aimed at the profits of such an enterprise as this, is the most unwise legislation which the State could enact, because, in striking at the results of such an enterprise as this, the same blow is also struck at the direct material interests of the State itself. A clear exemplification of this fact is given in the following figures, showing the source from which the freight traf- fic of this Atchison road sprung in 1882: The accounts and figures for the year 1883 are not yet made up. The freight earnings of 1883 were nearly $200,000 less than in 1882, so I give you the facts for 1882 as made up by the General Auditor of the Atchison road, as closely as he can figure them, it being difficult to get the figures right to the last dollar, as the road is operated as a whole in all the States and Territories. In 1882 the total freight earnings of the Atchison system of roads in Kansas, Colorado, New Mexico, Missouri and Texas, consisting of 1,820 miles, was $10,537,201.57. Of this sum, the money earned on that portion of the road in Kansas, and a few miles in Missouri, consisting of 912.10 miles, was $6,319,787.01. This was the entire freight money earned on the business transported in Kan- sas, whether it was going only across Kansas, or between two Kansas points, or going to and from Kansas points to and from points in other States. This sum was earned as follows : On business between two points, both being in Kansas $1,325,192 20 On bustuess to or from Kansas points, and going to or from points in the States east of Kansas 1,817,686 1& On business to or from Kansas points, and going to or from points in States and Terri- tories west of Kansas 519,298 56 On business to or from one foreign State or Territory going to or from another State or Territory, and hence only going across Kansas 2,657,610 09 Total 86,819,787 01 As the courts have decreed that legislation on railroad tariffs covers only business lying within the State, it will be readily seen that any leg- 25 islation enacted would cover only about one-fifth of the freight traffic of this through line. Another glance at these figures will show that nearly one-half of the entire freight traffic of the road consists of busi- nesssiraply brought across the State business which uses Kansas simply as a bridge, but which while passing over the bridge leaves one-half of the money earned upon the traffic to be distributed along the line, in the way of expenses incurred for conducting the traffic. The aim of the State, then, should be to do everything in reason to advance and build up this class of traffic, so that it may come across the State of Kansas instead of going in other directions, and the greatest degree of profit made by the railroad company upon this class of business, means a proportionately large degree of benefit conferred upon the State itself. The duty of the road towards the State, as based on common-law prin- ciples, is, to afford to the citizens of the State living on its line a reasonable system of rates for the traffic produced by those citizens. That that has been fully done, we think has been established by the figures here presented. It follows that the interest of the State is to allow the owners to make the railroad as largely profitable as the energy, intelligence and enterprise of those owners may enable them to accomplish. It is possible that the public, in some parts of the country, may have been misinformed upon this subject, as it appears that they were some years ago upon a subject somewhat similar. It will be remembered that a great deal of excitement, extending through a number of years, pre- vailed almost everywhere among producers over the alleged extortions of "middle men," a term which was applied to the dealers in mer- chandise, groceries, produce, etc. Cooperative stores were established,, and the matter was very fully discussed and tested, and many advocated a resort to some legal measure. A full investigation brought out all the facts, and it finally became known to all, that competition was so intense that only the most careful and industrious traders succeeded, and that the percentage of failures i that business was as large as in any other. On any complicated subject of this character, it seems that discussion and investigation will finally bring the ultimate facts to the surface; and in the end all parties are thus benefitted. LAND-GRANT STATEMENT. So much has been said in regard to the land grant of the Atchison, Topeka & Santa F6 Railroad, that an analysis of the grant has been made, and is herewith given. The Atchison, Topeka & Santa F6 Railroad received through the State of Kansas from the General Government, a land grant consisting of 2,934,584.04 , acres of land. When the construction of the road was begun by the original projectors, it was found that investors were un- willing to purchase first-mortgage bonds of the road to a greater amount than $16,000 per mile; and the actual cost^of the road being very much in excess of this amount, it was found that the only means remaining to the company for obtaining the necessary money to complete the road, was, to borrow the additional funds, using the land grant as a security. In consequence of this determination, the sum of $3,520,000 was bor- rowed, and the land grant given as security therefor, and this $3,520,000 was used in completing and equipping the railroad extending from Atchison to the west line of the State. It will be remembered that, after the road was completed, and even during the time of its construction, times were hard and the railroad earnings were small. The land sales were also very small, and even upon such sales as were made the amount of money which was collected was small. The consequence was, that when the interest upon the land mortgage fell due, amounting to about $250,000 a year, there were no moneys from the land grant, nor even from the railroad, to meet the interest, and in order to prevent the foreclosure of the mortgage, the railroad company and the land trustees executed a second mortgage, called the land income mortgage, amounting to $480,000, the proceeds of which were used in paying the interest, charges and expenses of the Land Department. This made an entire debt against the land grant of $4,000,000. Now let us see what has been done with the land grant itself. On the first of January, 1884, we find the following condition of affairs: There have been sold 1,855,490 acres of land for the sum of $8,634,- 741.01. The total amount of cash which has been received by the (26) 27 Land Department from its organization up to the 31st of December, 1883, has been $6,984,611.60, which has been disposed of as follows: Paid out for taxes to State and counties $1,114,299 20 Paid out for immigration work, and for conducting the Land Department 1 ,228,976 19 Paid for interest on land-mortgage bonds and land-income bonds 2,655,017 27 Paid out for purchasing and cancelling land-grant bonds 814,000 00 Paid out for purchasing and cancelling land-income bonds 480,000 00 Funds for purchase of land-grant bonds 668,925 43 Paid out for the expenses of the land trust 23,393 51 Total 86,984,611 60 It will be seen from the above figures that not one dollar of the entire receipts from the land grant has in any way, shape or form been received by the stockholders of the railroad company, and up to this day every dollar which has been received has been used, either in payment of taxes, in payments for immigration and other work done for the road and the State, or in payments of the principal and interest of the bonded debt incurred in the construction of the railroad. Now let us see what is the condition of the land grant as it is to-day : There are outstanding debts still unpaid amounting to $2,706,500. Against this debt there are the following assets belonging to the Land Department: Unpaid principal of land contracts $1,303,773 97 Land lying east of Dodge and nearly all west of Newton, 685,486.92 acres, at $1.75 per acre, 1,199,602 11 Land lying west of Dodge, 562,257.46 acres, at $1 per acre 562,257 46 Cash received from previous years, and held by trustees for purchase of land bonds 668,925 43 Total $3,731,568 97 It will thus be seen from the above figures, that if these prices are successfully obtained for the part of the lands now remaining on hand, the railroad company will receive about $1,000,000 from the land grant, and this is the entire amount that has been realized, or will be realized when the entire land grant shall have been sold. . I 14 DAY USE RETURN TO DESK FROM WHICH BORROWED LOAN DEPT. This book is due on the last date stamped below, or on the date to which renewed. Renewed books are subject to immediate recall. 25Jun'608B #*e*t Mll m K_o D J UN 2 3 1960 LD 21A-50m-4,'60 (A9562slO) UniTersity of California Berkeley Stockton, Calif. T.M. Reg. U.S. Pat. Off. M17213G THE UNIVERSITY OF CALIFORNIA LIBRARY