St. Paul daily globe., 1892-05-27


the threat of the Chicago roads. He
had never heard Of another section of
the country where the rates were higher
on flour than OH wheat. There was no
reason why they should be. The flour
could be loaded TO the full capacity of
the cars Just as well as wheat. Mime
apolis mills, in the aggregate, have
made no money for three or four years.
On cross-eXamination by Judge Fish,
Mr.. Pillsbury gave some evidence that
was in contraventlon to that of Mr..
Shute, of the 500. relative to the storing
of -four at lake ports:
When flour is Stored at Duluth before
being shipped the miller pays for the in
surance. Mr.. Pillsbury said, with a
smile, that insurance companies would
not be likely to pay double loss; that
is, they would not pay insurance to both
railroad company and miller.
The railroads urge that because wheat
and flour have to be rushed through dur
ing a few months of the year they must
\ keep on hand large number OF cars
that must lie idle during large portion
of the year. Mr.. Pillsbury admits that
this might be true in a measure, but, in
his opinion, there was not an i'm
portant road in the country on
which such small proportion
of the equipment lies idle as in
the case of the North western roads.
In response to questions from Judge
Judge McDill, Mr.. Pillsbury said that
the Chicago roads made 71a-cent rate
on flour in order to get portion of the
flOur-carrying trade, the rate to Duluth
being cents and the nominal rate from
Duluth east 215 cents. Then the point
was brought out that while the 711a-cent
rate via Chicago existed the Chicago,
Burlington q Northern was built, the
builders believing they could make
money by carrying -four at ~ cents.
Judge Fish couldn't make Mr.. PillSbury
admit that the millerS had secured the
building of the Chicago. Burlington Il
Northern by promises of business, and
had secured material concessions from
other railroads..
"But you think, Mr.. Pillsbury," said
Judge Fish, "that after having had
your mills built up by railroad conces-
sions, the railroads should go still
further and favor you so that you can
bring wheat here, mill it, and then ship
it to Duluth, getting the same rate that
the Duluth millerS get, when your wheat
and flour is carried 100 miles further"
Il won't admit that we have been
built up by the railroads. l think we
have built up the railroads"
Mr.. Pillsbury insisted, under Judge
Fish's careful cross ss-examinatiOn, that
Minneapolis millers have never ell
ioyed and advantages over Wisconsin
and Iowa millers in the matter of rates.
The advantage was with Minneapolis
mllers because they first adopted new
Improvements.
"You have been losing money right
along for few years. have you?" asked
Judge Fish.
"Yes, Sir"
"Then how do ycu explain that you
are able to make 100000 barrels more
of flour this year than last?"
profits can be figured on two basis.
There are certain fixed charges, as
taxes, insurance, interest, wages of
millers, Office rent, ETC., which 20 on,
whether the mills run. So when mill
is organized for running it can as we'll
afford to make flour at a loss OF ten
cents barrel as to stand idle. We
make more flour this year principally
because of the short crop in Europe and
the demand for -four"
Further questioning brought out Mr..
Pillsbury'S ideas on the difference be-
tween Duluth and Minneapolis. If Du-
luth and Minneapolis were equally
favorably situated in motive, common
fairness would demand that Minneapo-
lis be given the advantage in rates, be-
cause wheat can be hauled to Minneapo-
lis cheaper than to Duluth. The roads
get more return freight from st. Paul
and Minneapolis than from Duluth, and
much more local business. He could see
a good many reasons for railroad dis
elimination in favor of Mi nneapolis, but
nome in favor of Duluth.
Hugh Ryan, representing the Mil
waukee chamber of commerce, took the
big miller in hand. Comparisons were
drawn between the milling interests of
Milwaukee and Minneapolis. Mr.. Pills
bury admitted that the winning of this
case-the reduction of the rate Oh flour
to Duluth to So centS-would give Min
neapolis millers on advantage over
Milwaukee millerS of eight cents bar
rel on all wheat bought in territory
common to both Minneapolis and Mil
waukee. He thought the reduction of
the Duluth rate to 31a cents would ben
eft the Milwaukee millerS. The logical
sequence of the reduction of the Duluth
rate would be the reduction of through
rates from the wheat fields to Milwau-
kee. This would be to the advantage
of Milwaukee millerS.
In response to more questions. by
Judge Fish, Mr.. Pillsbury said the rail-
roads could well afford to reduce Min
neapolis rates on wheat and flour, al
though they are not making much
money now. Unless the rates be re-
duced, there will be no wheat and flour
traffic to and from Minneapolis. 1t is
better for them to carry wheat and flour
at fair rate than to get none at an eX-
orbitant rate.
"Mr. Pillsbury, would not five-cent
rate on -four to Duluth be the only rate
of the kind in existence?" inquired
Judge Fish. "a
mo, sir The roads out of st. Louis
try to get as near five cents as they can
double the distance from here 10 Du-
luth. But they don't always get five
cents"
The railroad attorneys showed de-
sire to have Mr.. Espenscheid, repre-
senting the millers of Southern Mime
sofa and Wisconsin, ask MIR. PillSbury Il
few questions, but Mr.. Espenscheid said
nay.
''What will be the inevitable effect if
thi determination in rates is cOntin-
ued?' inquired Attorney Brown for the
millerS.
"lt will be to wipe out the mills of
Minneapolis, the mills south of US, and
the mills of Milwaukee,"
Further questioning brought out these
points: Duluth has the same all rail
rate to Chicago that Minneapolis has.
1t, therefore, profits from discrlmiDa-
ton both East and West. Minneapolis
miIlers do not ask for discrimination
against Duluth; only an equal chance.
What Greenleaf Thinks.
Frank l.. Greenleaf took the witness
chair. He has been in the milling and
grain business in Minneapolis since
| 1875. He cOrrO5orated all the evidence
of c. A. Pillsbnry as to the conditions
existing since that time.
what, in your opinion, will be the
! effect of the continuance of the present
rates on wheat and flour transporta-
tion?' asked Mr. Brown.
1T will be to cause the millers here
to shut down, and cause the mills south
of us and the Milwaukee mills to go out
business"