r e THE \" \ \',, MAG A Z I N E \ Publishe4 by the CHICAGO, MILWAUKEE, ST. PAUL & PACIFIC RAILROAD \', . MAY. 1944 I tt------,,------~------,\ . \', The 744th Takes Over ,--: \', see story inside ,...-, .... ----- .... '~ , ....-' , ...-~ , ...-' , ,~' , ~~ , , ~~ ..... ~~ ~It.e IMPROVED FAIR RAIL ANCHOR
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THE MILWAUKEE MAGAZINE Land Grants
T HE rapid development of railroads following the construction of the first lines early in the last century was of great importance to the young nation whose population then was located mainly on or near sea coasts, lake shores and along water courses. The railroads connected widely separated areas, united the states, and put residents of every section in touch with those of every other section. Vast areas, theretofore unproductive, were opened for settlement; villages and towns were established along the rail lines as they were extended. The growth of agriculture and industry followed as products of forests and mines, farms and ranches ,,'ere made available to manufacturers and processors and consumers everywhere. Early in railroad history the government was impressed with the necessity for binding together all sections of the country, and providing adequate means for moving troops, supplies and mails so that its administrative activities and the growth of the nation would not be delayed and handicapped by dependence upon boats and horses and ox teams. Therefore, the government aided in the construction of some railroads in the 1850s, '06s and '70s, by grants of land along their proposed routes, with the provision that the railroads so aided must move, at greatly reduced rates, troops and government materials and mails over the lines afl"ected. Although the lVlilwaukee Road has a few small sections of line subject to land grant rates, the impact of the land grant acts on Mih"aukee revenues comes almost entirely from its agreement to equalize the land grant rates applicable to its competitors, and without which agreement the Milwaukee would be unable to participate in the traffic. In the year 194.3 alone land grant deductions reduced this railroad's freight revenues $10,500,000, and in addition a reserve of S3,500,000 was set up to cover items in dispute. If the land grant acts are repealed, the resulting increase in net income of the railroads will rellect but a slllall part of the increase in gross revenues, because the excess profits tax will return to the government a very large part of these additional revenues. In the case of the Milwaukee Road the increase in gross revenues incident to repeal 'rill be subject to the excess profits tax of 95 per cent, with a post war credit of 10 per cent, or a net tax of 85.5 per cent. Therefore, if the freight revenues of this road were increased $10,000,000, there "'ould be $8,550,000 returned to the government in taxes. Although the net increase would be relatively small, it would be helpful and is greatly needed. We appear to be at, or near, the peak of war traffic, but even if there are fmther increases in gross revenues, it is becoming increasingly apparent that railroad net income is on a sharp decline. The cost of materials and supplies is rising; the wage bill is substantially higher; and the revenue bill of 1944 increases the tax burden. No one knows how severe the postwar traffic decline will be, but all know it will be considerable. It may well be that with the increased costs the total revenues will not be sufficient even during the war to enable the railroads to give the efficient service that is essential, and it may be that it will be necessary to increase freight ra tes on all traffic. If the government paid commercial rates, it is conceivable that no general increase would be required, or, if required, a smaller increase might meet the situation than would be necessary if the land grant Tates were continued in effect. The grant of lands to the railroads would have been a good bargain for the government even if no reductions from tariff rates had been made as a consideration for the grant. This is true because the' building of the rail· roads opened up the territory for settlement and the direct result was that where there had been little market for the lands there was an active market and the government was able to sell its remaining lands at more than double the fonner selling price. The intangible value to the nation as a whole was of supreme importance, as it bound together far·Aung territories in a way that was theretofore impossible. That was the vision of President Lincoln when he signed the Pacific Railroad laws in 1862. The government has received by way of rate reductions a sum far in excess of the total value of the lands at. t.he time of the grants. It may well be that within a single year during t.his war period the reductions will equal the total value of the lands granted to the railroads. The land grant acts operate unequally and unfairly as between different railroads. Some railroads which received no land grants or grants of little value, but who are in land grant territory, must bear the burden of the reduced rates as a condition of participating in the traffic, while other roads which are not in land grant teo'itory collect their full commercial rates. The land grant rates discriminate as between shippers, making it difficult and frequently impossible for certain shippers to compete for government business. The land grant rates impose an undue burden on all shippers other than the government. The whole body of rates must be so adj usted as to yield revenues which will enable the railroads to perform an efficient trans portation service. When, therefore, the government, which is at all times a large shipper, and which, in periods of war, controls a substantial part of the total traffic moving by rail, receives a reduction in varying amounts up to 50 per cent, it appears that the traffic of others must be charged higher rates than would otherwise be necessary. In recent hearings before a Congressional Committee, the Interstate Commerce Commission, the Office of Defense Transportation, the National Association of Railroad & Utility Commissioners, the National Industrial Traffic League, the National Association of Shippers Advisory Boards, the United States Chamber of Commerce, railroad labor organizations, and other groups urged that land grant deductions be ended.
May, 1944 Maintenance of way men of the 744th rehearse lor combat as they help Milwaukee Road section men repair the Washington Avenue viaduct track in Minneapolis. The 744 th HERE has been an air of home T coming around Minneapolis and St. Paul since early March when the 744th Railway Operating Battalion, "the Milwaukee Road's own," moved into our shops and onto our rails for a period of intensive training. After spending the winter in Fort Sam Houston, Tex., where it was ac tivated, the battalion's luck held good as it moved north with the spring to its new home at Fort Snelling, Below-circle: No Army railroad could run a few miles out of Minneapolis. long without ils blacksmiths. and our shops There is a rightness about a Milwaukee Road outfit training on its own in St. Paul bear out the fact. Shown. I. to r" are: Pfc. Simon I. Markovich, formerly with home ground that bodes ill for our enemies. Of course, being determined lhe Carnegie lllinois Steel Co.; Carl Lande, blacksmilh; Pfc. lames R. King, who worked to contribute to the brilliant record of the Military Railway Service in this as a blacksmith in the Navy Yard crt Pearl war, these boys could be expected to '''ark hard at the business of learning Harbor before being called to the Army. the Army's brand of railroading, but being on their own home ground seems Below-righl: L. to R.: Pfc. Julius M. Fischer, who is training as a brakeman; H. V. Dunt to generate a little extra enthusiasm for the task at hand. ley, swilchman: and Ll. Col. R. E. Sherer, T.C" slalioned al Fort Snelling. Our premises have an unmistakable G. I. look as the boys in khaki go about their business with a lantern or a spike maul or a welding torch in one hand and a salute in the other, but the old Milwaukee friendliness is unchanged. It shows on the face and in the manner of every officer and enlisted man on the job, whether he learned to railroad with us or not and many of them did not. The unit is sponsored by the Milwaukee P. J. Madig . Yard. "brie/s,?n (exlreme ri h men and ,an lncom' 9 f), Ira;"", SW,tchmen t ,"g grou>:> 0/ asler at th S a fhe chang soldier eng' e t. PaUl e 0/ the shift~neers, fire_
Pvt. Sam Zeitman. formerly a welder at the Philadelphia Navy Yard. welds a line seam on a wrecked box liar at the Minne apolis shops. At the right is Chris Hyllestad. welder. Standing in the car is Lt. Robert A. Howell, former car foreman on the Cen tral of Georgia at Albany. Ga., who is now Takes Oyer qeneral car foreman of the battalion. It's Old Home Week in the Twin CitJies of them is beginning to feel and act As "Our Own" Trains on Our Own Trains like a dyed-in-the-wool Milwaukee Road man. Road and largely officered by our represented than any other railroad. Many of the men, fortunately, own men, under the command of ~Iost of Men Are Former Rails have little to learn, aside from the Lt. Col. W, J, Hotchkiss, former About 75 per cent of the men in Army's strategic variations on the superintendent on the H&D Division, the battalion as a whole, and 90 per familiar railroading theme. Others but only a small percentage of the cent of those in the operating com are breaking new ground in the mat ,I enlisted personnel hails from our pany, were railroading on one line ter of how to lift a tie, operate a own road. However, despite the or another before entering the Army, lathe, or run an engine. The super censorship hush-hush on the number Just about every railroad in the visors agree, though, that the over of men in the battalion and the per country-as well as a few ship yards, all result is in the railroad's favor. centage that comes from the Milwau drug stores, high schools, farms and The men are more' of a help than a kee, it can be said that the desire law firms-are represented. They hindrance-which was to be expect of newly inducted men from our own come from all parts of the country, ed, as it has been Colonel Hotchkiss' ranks to get into the 744th has re from all income brackets and from desire from the beginning to acquire sulted in our being somewhat better all walks of life, but every last one as many experienced railroad men
The ollicers of the ?44th Railway Operating Battalion are shown Capt. Elbert F. Utter; Lt. Claude B. Richardson, Seattle, Wash. Back below. For the sake 01 brevity, the railroad from which each man row: Lt. Ralph I. McKinney; Lt. Thor Monrad; Lt. Ferdinand A. Ziebell hails is indicated only for the Milwaukee Road men. and this only (Milwaukee Road man. but location not designated); Lt. loseph P. by showinq where he was formerly employed; it is permissible to Welch, Milwaukee Terminals; 2nd Lt. David ',B. Armstrong; Lt. Robert show only a limited amount of information concerninq these men. A. Howell; 2nd Lt. Cyrus S. Broadstone; 2nd Lt. E. B. Camper; 2nd Front row. I. to r.: Lt. Malthew P. O·Loughlen. Madison Division; Lt. Robert O. Kedney; Lt. John D. Reed. Kansas City Division; 2nd Lt. 2nd Lt. Henry F. Lucas'. Chicago, 111.; WOIG Dean E. Dornberger; Foster I. Phillips, LaX&R Division; 2nd Lt. Wm; T; Hankins; 2nd Lt. Lt. Forrest I. Hosler; 2nd L't. Leo C. Curley; Lt. lohn W. McReynolds. Blanchard L. Pritchard. Not shown in the picture 'are Lt. Hobart M. Marion, lao Middle row: Lt. Charles D. Rice (chaplain); Lt. Daniel Aggers. lormerly employed in Miles City; Lt. 'William J. Winfree; 2nd Gerone; Lt. Girard; LI. Edward Gongaware. LaX&R Division; Lt. Col. Lt. Lambert D. Keating. formerly employed in Chicago; and 2nd Lt. W. I. Hotchkiss. Aberdeen, S. D.; Mai. lames D. Shea, Aberdeen. John A. Smoak. S. D.; Capt. W. W. Hay. La Crosse, Wis.; Capt. Roscoe L. Allen; officials 11 a v e ing, in a general way, the depart met a number ments, of times with One company furnishes dispatch the battalion's ers, telegraphers, station agents and staff officers to the cooks of the unit. Another com discuss operat. pany, in charge of maintenance of i n g matters, way, keeps the tracks laid and re training paired. Another company performs schedules. and the important task of keeping all safety. . equipment in tiptop condition; they Battalion are the boys who get down under Patt~rned and look up. Another company com After posed of the train and engine crews, Railroad is responsible for moving the trains Dh'ision after the other companies have made Having read things ready. These are the skills the many which the men of the 744th are per press accounts fecting on our trains, in our shops, of the vel' y and on our tracks in the Twill Cities nearly impos and at outlying points along the sible t h i n g s line where actual combat conditions This picture was taken at a recent safety meeting which the officers of the battalion A I'm y r a i I can be more readily simulated, and officers of the railroad held at Fort roaders have been doing in North Snelling. The three soldiers in the foreground, When, where, and whether these looking at the safety glasses, are, I. to r.: Sgt. Africa, Iran, Alaska, and Italy, most men will match their courage and William Mayhall. Pvt. William Weisser, and M/Sgt. Jack David. In the second row are: of us know in a general way what the skill against that of the enemy on F. M. Washburn. company safety engineer, function of a railw"ay operating bat Maj. James D. Shea, Lt. Col. W. J. Hotchkiss, some flaming front is anyone's guess, G. M. Dempsey, general inspector, division talion is. There is no debating the but of this we can be certain: When of safety, and M. L. Medinger, safety engi fact that a railroader is a railroader neer. the call comes, they'll do their job for keeps; and that a soldier in the right; they'll do it fast, definitely, Army of the United States is a G. 1. and for keeps. They'll do it Mil as possible. The manpower which guy right down to his thick shoe soles. waukee Road style, the railroad lost to the Army is being and ready to offer deadly proof of partially repaicl. the fact, but in a railway battalion • The smoothness with which the the two can be found combined to Fire your dollars at America's enemies. Milwaukee Road and the Army are perfection. Put 10 per cent of your earnings into War working together can be traced to The purpose of such a unit is dual. Bonds every pay day. the interest our operating officers are Like all soldiers, they are fighting • taking in the battalion's training. Di men, qualified in rect telephone connections have been the weapons and established through the office of Su trained in the art perintendent Bagnell in Minneapolis, of warfare. But thereby making it possible for Col over and above onel Hotchkiss and any official or that, the y a I' e supervisor anywhere on the railroad capable of taking to get in touch with each other al o vel' any and most immediately. Groups of our eve I' y kind of railroad e qui p ment the y can lay hands on and The Cove.. using it to get men and mate At the close of a long day spent in a tour of the Twin City rials where they Terminals, where the 744th is a I' e needed. As in training, these three key fig. soldier - railroad ures in the intensive training ers, they are an program pause in front of the battalion headquarters building adaptable, un at Fort Snelling to study a dia beatabe, incred gram showing the terminals and ibly . resourceful the converging lines of railroad combination. where G.!. crews are rehearsing for war. D. T. Bagnell, terminal Their courage superintendent, is shown be has already been tween the battalion commander, proved in t his Lt. Col. W. J. Hotchkiss (right), war and their ac former H&:D Division, superin. tendent, and Maj. James D. complishm en t s Shea, former trainmaster at read like fiction. Aberdeen, S. D., who is execu A railway op tive officer of the battalion. erating battalion The Milwaukee Magazine ex is patterned after This group of G.I. telegraphers is but one of several now in training presses its appreciation to the with the 744th. learning how to "send the word Over there." or some U. S. Army Signal Corps for a division of a where. In the left background are: Lt. Col. W. J. Hotchkiss; Super this picture and those on pages mtendent D. T. Bagnell of the Twin City Terminals; Lt. M. P. O'Lough civi lian railroad, len. former train dispatcher at Madison. Wis.. and now director of 4, 5 and 6. the various com the telegraphy school; T/Sgt. D. E. Pratt, instructor of telegraphy. SjSgl. Melvin A. McGoon, former agent at Weaver. Minn.. and now panies represent- an instructor. is shown in the immediate foreground. THE MILWAUKEE MAGAZINE THE MILWAUKEE MAGAZINE CONCERNING OUR CONDITION May, 1944 Vol. XXXII No.2 ' Effective with this issue. And :It , rt j'he invitation-yea, the pointed in~ ~istf'nce---of the War Production Board, the )Iilwaukee Maga7.inp- bp MARC GREEN, editor ,.'" A. G. DUPUIS, manatjer comes a member of the Curtailed Press. And thn t. considpred wi til ~omewh<1.t more sober reganl for it~ • jrnplica tions, means that we lllU:-;t PUBLIC RELATIONS DEPARTMENT - UNION STATION, CHICAGO print Oll 25 per cent less pappr. The tidings, wafted OUf wny on Subscription rate $1.00. Single copies 10c the wings of "Part 3133 of ,Yar Production Board Publica tion Liwi ta tion Onler L-2:14 a~ amended .. alTh-ed Oil Apr. 10, effective fit least immediately. It all but jimmied the mercial agent at that point in 1929, and later as chief yard clerk, in the works. Compliance with the order on :;;.uc!J and on Jan. 1, 1939, was promoted Western Avenue yard. In 1916 he <;11 01' t notice r.alled for Clui .... k and to the position of general agent there. left the railroad to take other em· arhHrary action. bnt tllp trick ll~l:-: ployment, returning in 1919 to a po· heen turned in the presem: i~~lIE' b, • l'pdllcing tile weight of Ol1l' p;llJ("r sition in the trainmaster's office at ~to("k and by making I'l :-;lnsll in tile Humber of ("opie~ printed. Tile la t E. F. Vandrell Appointed Galewood station, Chicago. On Apr. tpl' expedient menn~ tha t :-.OIllP grollps 28, 1919 he was transferred to the all the railrond are l'l'eej\'in!: a Agricultural Agent slightly shrunken allotment of I~nlg office of general superintendent of azille~ this mont.h. thus c,dling for Earl F, Van transportation, in Chicago, and from n hit of magazine pooling. \\e heart ily (lislike haYing to takp that way drell of Stough that time was continuously employed, ont, hnt our choice is limited. :"anlPs He made many contacts throughout of ~cr\"icell1en on our lUniling list ton, Wis., has will !lot be l'emo\-ecl. 110wen~r. the railroad and was very widely It cannot be said fol' ~nre a t this been appointed timc whether the 2;3 per cent cut will a g ric u lit ural known and well liked. continue to be made through reduc He is survived by his widow, Mrs. tion in pl-lper weight and circulation, agent with head· or whether it will be accomplished quarters in Chi Emma A. Jones, who resides in Chi by pllbli~bing a magazine of fe\yer cago. png'es. Since t.he latter altprnati,e cago, to repre· lool\s more likE'! suicide, we naturall, sent the road in • hope to a\"oid it and tbe contingen't In one large town somebody started the It llep(1 of reducing the size of the type. general agricul The type face employed in parts of E. F. Vandrell idea of sending two or three dollars ;worth tural W 0 r k in j-his issue is somewlwt smallpl' thllll of War Savings Stamps to friends confined tllllt Ilspd in the magazine dlll"illg communities served by us in Illinois, the last fe\\- years, but the change in hospitals. And why not? The War Sav lIas been m:Hle for the renson that Indiana, Wisconsin and upper Michi· ings Stamps are appreciated years after nc\\"s about, and pic:tIlI"E'!s of, our bo,s gan, The appointment becomes ef• in military ser,ice, togetber with flowers are wilted and forgotten. the regular ne\,s of toe railroad, put fective May IS. sllcll tel'rHic pressure on OUl· limited • l'OlmllnS that ~ometiling- has to gh-e. A native of Green Bay, Wis., Mr. Xntul'ally, if our mailing list cannot Vandrell was graduated from the be held at the point \,here it has llOW been set. the t:,--pe size will ha,e University of Wisconsin, and re to be reduceu e\-en further and the magazine printed on fe\\-pr pages. ceived an advanced degree from Feeling that the :\Iilwaukee :\Iaga~ Penn State College. He has been em zine carries nn essential message and does an essential morale-b1lilding job ployed as a seed analyst and has also in ::111 essential indllstl"y' \,e ha,e done experimental farm work and made eYery effort to forestall curtail went of any kind. but in time of taught agriculture. For the past IS Traffic Department war \\-e all ll111:-5t do tllings we db years he taught and counseled out·of like doing, and cease doing thing":" we PlljOY. The limitation placed on school rural youths and adults in ag· Effective May 1, 1944: lIS is no more se,cre than tlJat sllf riculture, being employed by the J. H. Bradley is appointed general fered by most publications. "oe may grouse and grumble