The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-05-22
ABSOLUTELY PURE

two ana one-half times as much as
in any previous year He gives figures as
to the earnings per mile OF througa ana
local roads on the Coast. showing that the
Lake Shore stands higher IN this respect
than other local roads. He says that
the Northern Pacific has made every
effort 10 reduce expenses on the Lake
Shore by cutting eff the expense
OF New York Office. securing the
services of ali officers without compensa-
ton. except the local superintendent,
exacting rigid economy IN every branch Oh
the service and giving the benent OF the
credi. Of the Northern Pacific in pur-
chasing supplies. He gives figures as TO
the equipment of the road and quotes
from the report OF W. r. Thornei!.
the former manager. statement that
the type of locomotives in use conspired
to increase operating expenses. lie oe-
clares that the Northern Pacific has used
the equipment TO the best advantage. anu
has supplied engines in exchange for Lake
Shore engines and, as the Lake Shore
equipment is insufficient. the Northern
Pacific has enabled i. by the use OF its
cars to do q larger business than 1t
otherwise would. With its own equip
ment of fifsy-ihree box cars the road
might be able 10 handle seven:y-nine cars
of shingles for the East in thirty days,
but with the use OF Northern Pacific
cars 1t handled rs cars in March.
In regard TO the enforced removal OF
tie Boulevard shops, he says that the
loss OF the shops and grounds is traceable
to the bad faith or bad judgment OF off,
ce-s connected with the company before
the Northern Pacific became q stock.
holder. NJ. Mellen's other allegations are
merely confirnatory of those made in the
answer and ether afiiGavits.
The ali iavi, OF J. NJ. Hannaford. gen.
erai traffic manager OF both roads, denies
that there is any established custom in
the division OF through rates. or making
arbitra-ies. He points out that u very
large percentage oftne Lake Shores BUSH
ness is competitive with the Great North
not obtain high rates. The local
rates are lower than those of the
Northern Pacific and. as they
are the basis of figuring divisions Of
through rates. he declares the basis under
the contract TO be most liberal. He goes
on to show the advantage to the Lake
The through rates to or from its principal
points are the same as to Seattle, this
fact being regulated by factors
without the control of the Lake Shore.
as the Great Northern aud the steamers
touch these points, so that without termi-
nal rates to local points 1t could not par
ticipate in through business. 1t is ell
abled through the alliance with the
Northern Pacific 10 snare the earnings
on through freight to Anacor.es aud
Everett. which might otherwise be
handled by the Northern Pacific steamers.
The growth of the sAingle and lumber
business north Of Ballard since the North
ern Pacific detained control is quoted as
evidence of the benefits of the contract, as
il could not have taken place with an
arbitrary 10 pay. He shows that the
Lake Shore has been able to reach
Portland with Gilman coal and other
products, a large part of the in
creased production Of Gilman being due
to the opening OF the Portland market IS
we'll as Eastern Washington. 1t has had
the benefit of u thoroughly organized
corps of representatives IL the Eastern
and Middle states soliciting business for it.
The Northern, he says, has great advan-
tages over the Canadian Pacific alliance,
a. the latter has no line into the territory
TO which shingles are mostly shipped. SO
that the Be.lingham bay manufacturers
ship by wav of Sumas over the Lake Shore
and Northern Pacific paying the local
rate over the Beilingham Bay Il British
Columbia. The margin on the shngie
business is small. SO that without through
rates the mills on the Lake Shore could
not compete with those on other
lines, and, without close ALI
ance, il would be TO the interest
al the Northern Pacific 10 encourage those
on its own lines. The result would be the
closing of mills on the Lake Shore which
could not be reached by transcontinental
lines, the contning of the industry To
those points which were reached
by such lines and the cripp!ing of
the Lake shores main source OF
revenue Mr.. Hannaford gives a table
showing that in most cases the Lake Shore
receives more than its local as its proper
ton Of through passenger rates. lie also
gives table showing the relation which
the Lake Shores share of through shingle
rates bears to its local rates and 10 the
total through rate. He says that, though
the rates are low, without low rates the
business would not exist. and that If the
Northern Pacific had no interest in the
earnings of the road, 1t could hardly be
expected TO give up part of its OWN earn
ings to assist Industries on that line when
lis own territory is capable OF supplying
all the demand independent of points
north OF Seattle. lie also calls attention
10 the Eastern business which the Lake
SAore gets and which the Northern Pacific
M ght hand e with its boats.
The affidavit of :. g. Fulton. assistant
genera! freight agent of the Northern Pa
ciGc. is on the same lines as that OF Mr..
Hanna;ord. poiniing out the increase IN
business which has accrued 10 the Lake
Shore through the contract.
VI. +. Martin, general auditor OF the
Lake Shore. goes more into detail as 10 the
finances of the road. bat his bsnTes are IN
the end the same as those given in the an
swer. lie shows number oil amounts
which should have been charged 10 ex-
penSes IN the year ending June -.
l-al. which were charged by the new
officers IN the year ending June ~, lss-.
and thus swel the total tor that year.
THESE amoun. IN $751;, o.. ID, against which
there are offsets amounting 10 siS.l-s-i3.
Mr., Martin saws tina. he on several otca-
s!ons visited the offices for the
purpose OF verifying the accounts ana rec
o-is and CO. ec,Ing facts 10 be ased IN the
aaa. settlement with Logan. tarisssan