St. Paul daily globe., 1892-05-27
Inc MILlEhS lEAU.
They Appear to BE Ahead IN
the Big Interstate Con1-
mission Trial.
Pillsbury, the Big Minneapo-
lis Miller, Makes a First
Class Miller.
How the Clans Gathered at
Grand Opera House Last
Night.
More About the East Side
TPaekS--Mme. FarP'S
Case in Court.

Inc puOllc has the WORD or ". A.
PillSbury that there will be no COM
promise with the railroads ON the case
that is now being heard by the inter
state commerce commission. Mr.. Pills
bury says that he is doubtful if the COM
promise was ever seriously thought or.
At any rate, the millers are in the case
to stay now and to win if possible. That
the railroads regard a compromise as
doubtful was indicated by the attitude
of their attorneys during the hearing of
the case yesterday. They were more
aggressive and inclined to crOss-eX-
anime with greater severity and more
aSperity than on the day before.
Fred ID. Underwood. general man.
ager of the 500 road, was the first wit
ness called yesterday. He was first
shown six of the tables of rates attached
to the petition of the millers to the COM
mission. He was also shown tables
referring to rates 10 Duluth. In regard
to rates, Mr.. Underwood said
Rates should BE Governed
by distance and that the differentials
should be left to work themselves out
on that basis. He was of the opinion
that the millers of Minneapolis were
placed at disadvantage of from two to
three cents i'll the matter of rates on
wheat as compared with Duluth millers.
He was also of the opinion that. 10
cents hundred being considered fair
rate to Chicago, five cents hundred
would be fair rate from Minneapolis
to Duluth, taking that question in the
abstract. Mr.. Underwood concluded
his direct testimony by saying that grain
~, nd m adj
into flour by Minneapolis and Duluth
ought to be taken to the SeabOard at
substantially the same rate.
II. l.. Shpte, traffic manager of the
500, was called. His testimony was
practically the same as that OF
Manager Underwood. The rates from
the disputed wheat country were against
Minneapolis. The rate TO Minneap-
oils is based on the distance tariff,
while the rate to Duluth is not. The
rate should be prOpOrtioned and based
OH the shortest line. He said OH cross
examination. that the wheat is unload
ed at Duluth by the elevators, while the
flour is unloaded by the railroads. He
also said that the flour is insured by the
railroads.
Plough, of the Duluth.
A. B. Plough, vice president and gen.
eraI manager of the ST. Paul Il Duluth,
came next. His road is charging rate
of five cents on wheat from MinneapO-
lis to Duluth. Sometimes on through
cars of wheat his road did not get more
than 3.5 cents a hundred on wheat as its
proportion. Five cents would be too
low for flour. 1t cost more to handle
flour because the flour is not loaded to
the full capacity of the cars, while the
wheat is. Mr.. Plough was carried along
through the rates OH coal and lumber.
All of his evidence was to the effect
that a scent rate on flour would be too
low, and that 7.5-cent rate on flour is
not too high. 1he tables of the earn
ings of the Duluth were exhibited to
show that the carrying of flour at 5
cents was disastrous to the finances of
the road.
II. A. Towne, superintendent of the
Northern Pacific from 1874 until 1882,
was the last witness of the morning.
He was Of the opinion, as all the others
had been. that the rates.0n wheat from
Northwestern and Western points are
against Minneapolis and in favor of Du-
luth.
c. A. Pillsbury was put upon the
stand in the afternoon and kept there
until almost evening. He showed that
| he was loaded for the railroad attorneys.
! They could not get out of him anything
! that was to the disadvantage of Mime
apolis. Whenever Judge Fish, for the
| Milwaukee, would press him little
hard in the cross-eXaminatiOn, Mr..
| PiIlsbury always had a retOrt ready that
| effectually turned the scale against the
railroad represented by Judge Fish.
The first portion of Mr.. Pillsbury'S Ies-
timony was largely historical, relating
to the growth of the milling industry in
| Minneapolis.
| From the Ross Miller.
| Twenty-thlee years ago, when Mr..
| Pillsbury came to Minneapolis, the mill
ing property in Minneapolis could he
bought for 80 cents on the dollar OF the
original cost. The introduction of the
middlings purifier, in about 1870, and of
chilled steel rolls, in about 1880. revOlu-
tionized the manufacture of flour, and
increased the quantity and improved
the quality of this article of food. The
mills increased in number and in capac-
ity until now about 10000 barrels per
day can be made. The annual output
of the mills was 100000 barrels in
1880, 5,25O.OOO barrels in 1885. 1000, 900
barrels IN 1890, 100000 in 1891,
land" added Mr.. Pillsbury, II think
we will crowd 100000 barrels in 1892. -
This flour is marketed in the United
States, north of Mason and DiXon'S
line, and in Europe. Very little goes
west of Minneapolis. Fully so per
cent of the local flour output seeks an
outlet through the great lakes. Forty
per cent of it is exported. Of last years
output 1856, 900 barrels went to market
by way of the lakes at Duluth, and
l.25O. 600 barrels by way of the lakes al
Gladstone. About S7,000.000 are invested
in the milling business in Minneapolis,
| and it costs another $7,000.000 a year
to operate them. The terminal elevat-
ors of this city. holding 15,000,0o0 bush
els, are worth $4,000. 600, and cost 81, ,0OO,,
600 a year to operate them. 81 think, "
added Mr.. Pillsbnry in this connection,
s'that the introduction of the French
middlingS purifier and its use by Min
neapolis millers has made the North
west wheat country. But for this. in
stead of raising 150,000,000 bushels OF
wheat, as the Northwest did in 1891, il
would not have raised $4,000, ,000."
Mr.. Pillsbury says the present condi-
ton of the flour market is such that
flour cannot be made in Minneapolis
and sold in the markets at profit, un.
less it is some particularly we'll known
brand, This state of affairs always ex-
lists at times in the milling business. II
originated in competition at Buffalo. and
within a year has developed at the head
of Lake Superior. The Duluth mills,
within year, have jumped from com.
parative insigni6cance to 15,0O0-barrel
capacity day, and contract has just
been let for another mill with 1900 bar
rels capacity. This sudden prominence
of Duluth as wheat market has been
caused by the Northern Pacific road
which established an equal rate TO Min
neapolis and Duluth, which other roads
had to adopt or involve themselves in a
rate war.
PiIIsbury at COuntering.
Then the examination was turned
upon the old milling in transit question
and Mr.. Pillsbury detailed how that had
helped out the Minneapolis millers.
The establishment of the present rates,
discriminating against Minneapolis. had
made it utterly impossible to make flour
in Minneapolis at profit and compete
with the mills at Duluth. In order that