146 UNIVERSITY OF COLORADO STUDIES 
6. Ouray citizens would have a chance to build a railroad to Montrose 
and have connection with the Rio Grande. Some time before this 
privilege had been refused by the Rio Grande to the promoters of an 
independent company and the scheme had been dropped. 
7. Lake City would be able to build a railroad to the Rio Grande 
and secure an outlet for its ores. 
8. Midland County could also secure railroad connection at Aspen." 
Toward the close of the session, the committee filed a memorandum 
stating their position in regard to the proposed law. The following 
is the substance of this memorandum: 
1. No grievance is complained of under sec. 4 of Art. XV of the 
constitution. 
2. Sec. 5 forbids the consolidation of railroads and this bill would 
indirectly violate the spirit of that section by allowing combination. 
The Denver and New Orleans was the only railroad asking for this law, 
and it appeared to the committee that this railroad did not care to con- 
tinue the competition with the Rio Grande. Before the competition the 
fare from Denver to Pueblo had been $10 and after the competition 
and in the absence of legislation such as this bill provided this fare had 
been reduced to 75 cents. This rate had lasted for about two years and 
had finally been fixed at $5. Freight rates had also been reduced in 
like proportion. The committee therefore thought this sort of compe- 
tition would be good for the state. This bill also proposed to prevent 
any railroad company or person from reducing rates below remunerative 
charges for the purpose of injuring another railroad under a penalty of 
$20,000 fine. This, said the committee, would prevent railroads from 
competing with each other and had it been in operation when the Denver 
and New Orleans Railroad was completed, would have prevented the 
Rio Grande from reducing as that railroad would certainly not have 
been willing to incur the heavy penalty which the proposed law provided 
in such cases. The committee also stated that the bill would prevent 
any competition between the Rio Grande and the Denver and New 
Orleans at Pueblo for business brought west over the Santa Fe. The 
committee said rates would not be reduced but on the contrary would 
* Memorial for the Passage of Senate Bill No. 1, by John Evans, Denver, February 18, 1885. 
