James, in Watonwan County, (terminus of Saint Paul and Sioux City part of road,) 121 miles; from Saint James to Sioux City, (Sioux City and Saint Paul part,) 149 miles; whole length, 270 miles. Grain and flour shipments nearly all northward. Of 2,062,300 bushels wheat carried northward, in 1875, 881,434 bushels were shipments from stations in Iowa, 548,843 bushels of it were transferred at Merriam to the Minneapolis and Saint Louis Road for Minneapolis, 77,522 barrels of flour were carried, in 1875, northward, nearly all from stations in Minnesota, and 54,083 barrels of it from the mills at Jordan, in Scott County. Shakopee, county-seat of Scott, and an important milling point, is a station on this road, but its flour goes by Hastings and Dakota Division.

Movements of other grains: Oats, carried north, 101,349 bushels, one-third of it from Iowa; corn, carried north, 37,998 bushels, six-sevenths of it from Iowa; barley, carried north, 25,095 bushels, mostly from this State; flax-seed, carried north, 45,809 bushels, four-fifths from Iowa. Road completed, in 1870, to Saint James, and, in 1872, to Sioux City.

The Minneapolis and Saint Louis Railway, running southward from Minneapolis, west of the Minnesota River, to a point near Carver, in Carver County, where it crosses the river and connects with the Saint Paul and Sioux City Railroad at Merriam. It is as yet the only road west of the Minnesota River pursuing a southerly direction. Projected through the counties of Scott, Le Seuer, Waseca, Freeborn, to a connecting point with the Central of Iowa at the southern boundary line.

Completed, from Minneapolis to Merriam, 27 miles, in 1871. 1,311,910 bushels wheat carried by this road in 1875, all or nearly all for Minneapolis; 209,045 bushels of it came from Stillwater, via White Bear, over the Minneapolis and Duluth, (described in connection with the Lake Superior and Mississippi Railroad,) and 726,994 bushels were transferred to the Minneapolis and Saint Louis Road by the Saint Paul and Sioux City and Hastings and Dakota Division, as stated above. The balance, 375,871 bushels, were original shipments from Hennepin and Carver Counties.

The Central Railroad of Minnesota, originally chartered as the Minnesota and Northwestern, (name changed,) runs from Mankato southward through Blue Earth and Faribault Counties to Wells, a station in Faribault County on the Southern Minnesota Railroad. Distance, 40 miles. Projected southward to the State line, and northward, via Glencoe, in McLeod County, to Saint Cloud, in Stearns. Completed in 1874. Carried in 1875, 289,531 bushels wheat from stations located between the terminal points, of which 118,685 bushels went to Mankato and 170,846 bushels to Wells; carries oats and other grain to Mankato from all other stations.

Question 14. What classes of goods are received in Minnesota chiefly from Saint Louis and New Orleans? In the same connection please to state about what proportion of the sugar and molasses consumed in Minnesota, is received from Saint Louis and New Orleans, and what proportion from the East.

A few articles, such as rosin, pitch, castor-oil, white lead, and possibly lard-oil and wooden ware came chiefly from those places. The quantity of sugar and molasses from Saint Louis and New Orleans is so small compared with the imports of the same class of goods from the East, that it would be difficult to determine the proportion in the absence of actual statistics.

Notwithstanding the rapidly growing importance of railroads as carriers of our exports and imports, the Saint Louis trade is still largely by river, and growing less in proportion to the whole business of the State as it grows in population.

Question 15. Of the total general merchandise received at Saint Paul, Minneapolis, and Winona, and other important centers of trade, of the commerce of which you can conveniently gain information, about what proportion, do you estimate, comes from Saint Louis and New Orleans and what proportion from Chicago or Milwaukee, or direct from Atlantic States or Atlantic sea-ports?

Answer. As to Saint Louis and New Orleans see answer to the previous inquiry. As to the other points, information adequate or sufficiently accurate to state the proportion in figures not obtainable. As to all classes of goods that may be bought in eastern cities, the merchants in the three cities named are more and more getting into the habit of making purchases east of Milwaukee and Chicago, believing that thereby they will obtain goods at lower rates, and getting at the same time the opportunity to make an eastern trip, as many of them consider it, without expense to themselves. Question 16. Which of the railroads of Minnesota are considered exempt from the power of State regulations, under the rule of law in the Dartmouth College case, and in the charter of which roads has the State retained the power of regulating freights and fares?

Answer. Answered in first part of report. When the tariff law of 1871 had taken effect, the Saint Paul and Pacific, and the Iowa and Minnesota Division of the Chicago, Milwaukee and Saint Paul Railway claimed the exclusive right to regulate freights and fares by virtue of express grant in original charter, and the latter road (in the annual report to the railroad commissioners) claimed the same right for the other two divisions by simply referring to answer made in Iowa and Minnesota Division report. But this

feature of the question regarding the State's right to regulate railroads has not been publicly discussed. In another form the question as to the State's right to regulate is now before the United States Supreme Court, (see decisions in railroad commissioners' third annual report, of which copy has been furnished the Treasury Department, with first part of report.)

Question 17. Is the through business from Minnesota to the cities of the Atlantic seaboard chiefly carried on in fast-freight line cars of roads east of Chicago, or in cars belonging to roads west of Chicago?

Answer. Chiefly on fast-freight lines of roads east of Chicago.

Question 18. Please to present such illustrations as may occur to you, going to show the manner in which, and the extent to which the freight-rates actually charged on Mississippi River and on the lakes regulate rail rates.

Answer. No illustrations except the difference in the rates during the season of Dayigation and in winter, which is not caused wholly by the existence of water-lines. While these undeniably tend to the lowering of rates, the frequent reductions inade by rival railway lines east of Chicago cause such a confusion in the question of rates that our most experienced shippers are unable to give an opinion as to the extent to which lake rates govern rail rates.

Question 19. Please to present a statement, in such form as you may deem proper, concerning any facts of importance relative to discriminating or differential freight charges, the complaints as to such practices in Minnesota, and the ground upon which the railroads defend their practices of this kind.

Please also state some of the evils which have resulted to the public generally or to particular localities from discriminations made by railroad companies in their freight charges.

Answer. When the popular hostility to the railroads culminated in 1874, in the passage of a legislative act creating a board of railroad commissioners, with quasi-judicial powers, and authority to regulate freights and fares, the formerly frequent complaints regarding discrimination against localities and persons ceased, and the nert winter the board was legislated out of office and a new law enacted scarcely equaling the shadow of the old one; no complaints have since been heard. As to discriminating charges and complaints thereof previous to 1874, reference is made to the report of the joint railroad investigating committee of 1871, and to the railroad commissioners' report for 1873, page 411, copies of which accompanied the first part of this report.

The injurious practices complained of were: First, lower charges for a distance to a point where the discriminating road was brought into competition with other roads, or with another road, than for a part of the same distance, placing the intermediate points at a disadvantage; second, unreasonable charges for a short distance to another road, leading to a better market, in order to compel the shipper to send his freight to market by the discriminating road; third, unreasonable charges at non-competing points, to make up for the loss at competing points; fourth, lower rates to certain favored wheat-buyers, enabling such to control the local market; fifth, permitting railroad officials to trade in grain, with facilities for shipping superior to those afforded other shippers. The roads defended their discriminating charges against certain points and in favor of others by declaring that competition compelled them to lower rates where lowered in order to get the business, and that the rates charged from complaining points were not disproportionate to the cost of carrying the freight obtained from such points; as to favored shippers, that the arrangement was supposed to be to the advantage of farmers, or the circumstances frequently justify a departure from the tariffs in favor of large single shipments or shippers.

The evils were such as would naturally result from the classes of discrimination complained of, and are too plain to need elucidation.

Question 20. What proportion of the total value of the surplus products of Minnesota do you estimate to have been shipped to States east, and what proportion to States south, during the year 1874 or 1875? The statistics of the latest year of which you have reliable data may be assumed.

Answer. The total value of exported wheat, barley, flour, and lumber in 1875 was $22,126,766. No exact information as to shipments south, except of lumber and wheat and flour by river. Assuming that all the lumber went south, (though some of it went to Illinois,) the value of surplus products shipped to States south (lumber, wheat, and flour) would be $3,096,104, or not quite 14 per cent. of the foregoing $22,126,766, leaving 86 per cent. as the proportion shipped to States east.

No information on which to base an estimate of proportion of shipment of minor products eat or south.

Question 21. Is there now or has there ever been any law of Minnesota prescribing the limit of any particular charge for the transportation of either freight or passengers, or for preventing a greater charge for a less than for a greater distance?

Answer. The tariff law of 1871 limited charges. The railroad-commissioner law of 1874 gave the power to establish rates into the hands of the board of commissioners, and especially prohibited a greater charge for a less than for a greater distance. The

latter law was repealed in 1875. The new law of that year, still in force, does not prescribe or authorize the prescribing of limits to railroad charges; it provides penalties for the violation of its provisions, one of which forbids "unreasonable charges," and if such are construed to include "a greater charge for a less than for a greater distance," then also the present law may indirectly be called a "law for preventing a greater charge for a less than for a greater distance."

Question 22. Of the total amount of grain-shipped south from Minnesota on the Mississippi River, about what proportion was transferred to railroads and transported to the ports on Lake Michigan, or direct to the Atlantic seaboard ?

Answer. The wheat and flour shipped down the river from the State in 1875 amounted to 2,567,694 bushels, (including flour at 5 bushels per barrel,) of which 2,316,985 bushels, or 90.2 per cent., were transferred to railroads for further shipment eastward.

Question 23. Please to give the rail and river rates for the transport of grain from Winona and from Saint Paul to Saint Louis during the year 1875.

Answer. As to rail grain rates from Saint Paul and Winona to Saint Louis, (via line west of the Mississippi,) the Chicago, Milwaukee and Saint Paul Railway has a through tariff, of which no copy obtained; but hardly any grain shipped by that route to Saint Louis from Minnesota. River rates to Saint Louis from Winona and Saint Paul, 25 cents per 100 pounds.

Rail-rates for grain from Winona to Milwaukee and Chicago, stated by the general freight agent of Chicago and Northwestern Railway to have been 27 cents per 100 pounds throughout the year over his road.

By the Chicago, Milwaukee and Saint Paul Railway: 25 cents per 100 pounds from April to September; 27 cents from September to end of year, (see accompanying special tariffs.) From Saint Paul: 25 cents from April to September, 30 cents from September, (see same tariffs.) Rail and lake and rail rates to New York and to Montreal: no through rail rates affecting the charge for distance from Minnesota to Milwaukee or Chicago; endless fluctuations in charge for distance from Chicago eastward.

One of the fast-freight-line agents gave me the rates from Chicago to New York, varying from 30 to 40 cents per 100 pounds between March 25 and October 1, 1875. Winter rates higher.

No information regarding rates to Montreal.

Unable to get lake and rail rates to New York via Milwaukee or Chicago. However, as to the Chicago and Northwestern Railway, the general freight agent has stated that for all grain from Minnesota going east of Chicago or Milwaukee his road received the full rates to Chicago or Milwaukee; thus the lake and rail rates east by that road must have been the 27 cents per 100 pounds to the lake-the lake and rail rates thence to point of destination.

As to rail rates from Winona to Du Luth, the general freight agent of the Lake Superior and Mississippi Railroad informed me that he offered to carry grain from Winona to Du Luth last year for the price charged from Winona to Milwaukee and Chicago, but received no freight.

Through-freight tariff to Saint Louis of Keokuk Northern Line Packet Company forwarded herewith. Copy of Chicago, Milwaukee and Saint Paul through tariff not obtained. Was told that there is no through tariff to New Orleans.

Copy inclosed of fast-freight Red Line tariff between Chicago at the East, all the lines having, I believe, the same tariff rates. Adding rates to Chicago gives through rates. Copies of local tariff inclosed.

The following should have been included under grain rail rates to Milwaukee and Chicago:

Statement of rates in 1875 furnished by general freight agent of West Wisconsin Railway:

The West Wisconsin rates being all from Saint Paul (not from Winona) to Chicago or Milwaukee.

All foregoing rates are general or special tariff rates. The departures from them in individual cases are, however, so frequent and great, that the tariff rates give no correct information as to the actual cost of transportation to the shippers during the periods of great activity in the through business

During the spring of the present year, 1876, competition between fast-freight lines caused great reduction in rates; so much, that one of the agents stated that his line had carried freight for nothing; meaning, of course, that the proportion chargeable to the distance from Chicago to the East of the rates received was next to nothing, and yet the tariff showed ordinary rates.

E.-Quantity of grain of each kind produced in Minnesota, 1860 to 1875.

The figures for 1859 are those of the United States census of 1860. Those for 1560 from report State commissioner of statistics of that year. Those for 1865, 1866, 1867, from report of State auditor, to whom returns for the three years named were made. For 1865 they were very poor; wherefore all omitted except wheat. For same reasons rye, barley, and buckwheat, omitted for 1866, and rye and buckwheat for 1867. Those for 186--1875 from reports of State commissioner of statistics, which office was reestablished in 1869,

APPENDIX No. 16.

ANSWER TO INQUIRIES IN RELATION TO THE COMMERCE OF LOUISVILLE AND THE COMMERCIAL MOVEMENTS TO AND FROM THAT CITY BY RIVER AND BY RAIL, BY MR. C. H. POPE, OF LOUISVILLE, KY., 1876.

Question 1. Please to present comparative statistics as to freight rates from Lonisville to three or four principal points in the Southern States, by river and rail, during the year 1875, indicating the relative rates by river and rail during high and low water. Points suggested: Nashville, Memphis, Vicksburgh, and New Orleans.

Answer:

SCHEDULE 5.-Statement showing the average river and rail rates for the transport of merchandise of the same class from Louisville to the competitive points in the Southern States during each month of the year 1875, together with the average stage of water. RATES FROM LOUISVILLE PER 100 POUNDS.

The above rail rates are taken from the tariffs of the Louisville and Nashville and Great Southern Railroad and connections.

The Elizabethtown and Paducah Railroad, or the Louisville, Paducah and Southwestern Railroad, as it is now called, duplicated the rates given by the Louisville and Nashville and Great Southern Railroad above, as both roads are monopolies, and have combined on tariffs to competitive points.

The river rates for low water during the latter parts of January and May and throughout the months of September and October were merely nominal, as boats could not take freight at any price. A few light boats ran, but their high rates, with