St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-01-07
Decision by the Interstate
Commission in the Mime
apolis Cases.
The Opinion Is in Favor Of
the Chamber Of Com
merce.
Legality Of the Flour Rate
Not Touched by the Com
mission.
Roads Ordered to Adjust
Rates on the Basis Of
Distance.

WASHINGTON. Jan. 6.-The interstate
commission today, in an opinion. an
nOunced its decision i'll the case of The
Minneapolis Chamber of Commerce
against The Great Northern Railway
Company and others, involving rates on
wheat from North and South Dakota
points to Minneapolis and -four from
Minneapolis to Duluth and other Lake
Superior ports. The commission de-
clines to 60 into the question of the
legality Of the flour rate for the follow
Ing reason:
First-When local rate from given
point (Minneapolis) is alleged to be
reasonable, but it appears from the
record that such local rate is also pro =
portion of a through rate from that
point, and as SUCH the real subject of
controversy, the complaint should be
directed against the aggregate through
| rate, not the share received by any
initial carrier; and all the carriers COM
posing the through line are necessary
parties.
1t further holds generally in regard to
the flour rate as being over roads con-
| Meeting Minneapolis, which is naturally
located on the Lake Michigan route to
the Seaboard, while Duluth, which, in
respect to flour shipments East, is more
fayorably situated on the Lake Supe-
riOr route, as follows:
!SecOnd--A town favorabIY situated
with respect to one through route, but
competing in common market with
another town more favorably located on
another through route, should not have
reduction of the local rate over roads
connecting the two through routes for
the purpose of overcoming the natural
advantages which the latter complain
ing town enjoys.
Rules Laid Down.
Upon the question of alleged unlaw-
full wheat, charges to Minneapolis as
compared with those to Duluth, the
commission lays down the following
rule:
Third-A milling town (MinneapOlis)
possessing great natural, acquired and
improved advantages for the carrying
on OF that-induStrv, and favorablY stu
ated III point of distance to large grain
producing region, is entitled to the ben
efitS arising from its location, and car
rierS Of grain to that point and to COM
peting town Dufuth), considerably more
remote from points Of production, and
in other particulars less advantageOusly
located, are not justified in making
rates Oh grain to the competing towns
which destroy the advantage the former
is entitled TO enjoy.
Fourth-Rates on wheat from points
in North and South Dakota to Mime
apOliS, as compared with the rates
charged over considerably greater dis
tanceS from the same points to Duluth
and adjacent Lake Superior ports, sub
ject Minneapolis millerS to understand
unreasonable prejudice and disadvant
age. The defendants are ordered to
adjust their rates on wheat from said
points to Minneapolis and Duluth upon
the basis of distance over the nearest
practicable routes.
Some of the conclusions advanced by
the commission are that the general
prosperity of Minneapolis is largely de-
pendent on the prosperity of her mill
ing interests. The lumber and milling
interests, both of which are very great,
are really helpful to each other. Cars
coming in from the west with wheat
are largely loaded back with lumber,
and the lumber is often paid for by ele
Vator receipts for wheat or drafts on
millers who have purchased wheat. The
general jobbing trade OF the city, nota-
bly, in the line of agricultural imple-
ments, is also largely Influenced by the
volume of the wheat and flour trade.
The commission adds:
DuIuth's Advantages.
at can hardly be doubted, in view of
the testimony, that under the present
adjustment of rates on wheat the mill
ing interests of Minneapolis, and with
them its general prosperity, and posi-
t.lu itG a finn Alaliun 70
as such a result would be attributable
solely to the greater natural advantages
of Duluth as point for the manufact-
ure and shipment of flour. nothing
perhaps could properly be done to
avert it. Duluth is nearer to the
markets than Minneapolis, and to this
extent Its advantages cannot and ought
not TO be denied or taken from it; but,
on the other hand, Minneapolis is
nearer the wheat fields than Duluth, and
to this extent it is entitled to an advant-
age over Duluth. which on that account
should naturally belong to it. This nat
ural advantage is denied to Minneapo-
lis in the present adjustment of railroad
rates as between it and Duluth from the
wheat field. As general proposition,
it is conceded that the shortest line
should fix the rate. and several railway
CADCI 70 littfC tSoIliCi III Glllo CdSC lIldG
the rate to Minneapolis and Duluth
should be adjusted according to mile
age, taking the shortest route to each
place as basis of comparison"
Upon flour rates the commission says:
eff the transportation of flour from
Minneapolis to Duluth be considered as
q local business it is commended that the
commission has no jurisdiction over 1t,
but without passing upon this question,
for the reason that in the view taken of
this case its determination is unneces-
sary, we remark that the testimony of
witnesses, arguments of counsel and the
whole record show that the attack upon
the rate OF ~ cenes per 100 pounds on
flour from Minneapolis to Duluth
and adjacent ports is made on the
ground that 1t is a part of the through
rate on flour to the seaboard and inter-
state rates to intermediate points, yet
necessary parties are absent from the
complaint. Moreover, its justice and
reasonaDleness could not be considered,
except by an investigation of the entire
through rate. The case has not beer
prepared and presented by the COM
plaInant in such manner as to enable
the commission to determine the ques-
ton. We desire to say in reference to the
flour rate between Minneapolis and Du-
luth, that it is apparent that Duluth has
some natural advantages over Minneap-
oils with reference to the seabOard and
export trade, and among these are
shorter distance from sea ports and its
location at the head or beginning Of
waterway. On the other hand, Mime
apolis is considerably south of the line
passing through the country east and
west via Duluth to the seaboard, and
the expense OF transportation to Duluth