St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-01-01
Roads That Make Rates.

Before touching upon the matter OF
rates as specified in our fifth test, allow
me to call yonr attention to the fact
that the roads concerned in the rate
making are properly diviSible into three
distinct classes.
First-Lines interested in number
of jobbing points. Of which st. Paul is
but one-for example the Wisconsin
Central. Northwestern, Burlington,
Chicago. st. Paul q Kansas City, Great
Northern, Northern Pacific, st. Paul d
Duluth, Chicago, Milwaukee Il st.
Paul.
Second Lines interested in no other
iobbing point except st. Paul-for eX-
ample, Minneapolis q st. Louis ard
500.
Third-Lines interested in other job
bling points to the exclusion of st. Paul
for example, Burlington, Cedar Rap
ids q Northern, Illinois Central.
InaSmuch IDS at least three-quarterS OF
the population supplied by st. Paul Job
bers are reached by roads Of the first
class mentioned, we have no right to eX-
pect more than a far.S. adjustment of
rates as compared with our competitors;
and unless L very much mistake the
character OF the men as a whole, who
have brought our jobbing trade to its
present proportions, that is all they ask
for. With an equal chance, the flag of
st. Paul will be found ever in the van.
Bearing this in mind then, we ask,
Favorable Freight Rates
Fifth-Do we have favorable freight
rates in all directions? TO the average
shipper the word "favorable," as APP
piled TO freight rates, means ''loW,"
and more than one Jobber i'll this CON-
munity, who is an accepted authority III
his line, is still struggling with this a b
c stage of the transportation problem.
In the desire to reduce to minimum
his freight account, he overlookS en-
tirely the limitations placed upon his
distributing territory by low scale OF
rates. Let US consider that side OF the
question moment. The distinction be-
tween wholesale and retail trade from a
mercantile point of view is simply a
question of the relative Size OF pur-
chases. The retail grocer buys sugar
by the barrel. The wholesale grocer
BUYS it by the carload. The same rule
applies to the machinery, furniture,
crockery, hardware, iron, fruit and all
other lines of trade. This distinction
holds good in your purchases OF trans
portatiou, which is a salable comm odlty
equally with the aforementioned,
though you do not load it on your dray
nor pile it IN your warehouse. The
jobber buys 1t in large quantities, the
retailer in small, and the difference in
the prices paid is the margin OF possible
freight profit to the jobber
Those of you who have anything to do
with freight matters are aware that the
scale of rates is divided into ten classes
the first four representing the charges
on small lots and the last six on car
loads, and that the great majority of
goods have both carload and less than
carload rates. The difference between
the carload and less than carload rate on
any article represents the freight mar
gin, or portion OF the profit of the job
Der: and this margin decreases directly
as the scale of rates is reduced.
Then again many articles cost prac-
ticalIy the same in ST. Paul as in Chi
cago, and the customer compares rates
from the two points. The higher the
scale of rates from Chicago to st. Paul,
the further you can 20 toward Chicago
with goods of this class. Today, with
50-cent scale in effect, you meet the Chi
GAG O jobbers on such articles at Junction
City and Camp Douglas, Wis, Bueua
Vista, Delaware and Waterloo, 10.
Under the 40 per cent scale of rates
which prevailed Two years ago, we nee
essarily drew the above line at Fairchild,
Wis.,; WIuoua, Austin, Albert Lea.
Mimi, marked difference, easily OBJ
served.
The comparative mileage to the points
first named from Chicago, Milwaukee
and st. Paul is as follows:
Chicago. Milwaukee st Paul
Junction city ..S69 1 115 2 2S3