The labor world., 1898-07-16
GIGANTIC MONOPOLY
Investigation of Charges OF
Extortionate Freight
Rates.
The Minnesota Octopus is
Being Grappled
With.

DR.. Conan of Superior, against the Iron
Range roads for the enforcement OF
honest freight rates was begun this
week. The case is being tried before
the state railroad commission.
w. w. Billson, one of the attorneys
for the petitioners, made most
mastery and brilliant outline of the
case. He said:
eve shall show just what are the
customary rates given by prosperous
roads under similar circumstances. 1t
will be shown that the Duluth & Iron
Range charge is at least IL mills per
ton per mile. and the Missabe road
slightly less. This will be shown in
various ways, and it will be shown that
half that is satisfactory rate for roads
in similar situations. Comparisons will
be hard to find, for there are few roads
that compare with these roads in den-
sity of traffic except the Eastern Min
nesota. We shall show that there is not
a road in the United States, in proper
ton to the number of rails used, that
has SO dense traffic as the Missabe
road and but few so dense as the Iron
Range.
"We shall show that the Missabe
road carries 100000 tons of ore. and
no other roads traffic reaches that
figure. The Iron Range runs perhaps
100000 tons less than that, so as to let in
between them several large companies.
We shall show when we examine the
rates of the different companies that
can compare with these figares, that
while the ore road gets II mills per ton
per mile, upon roads of that class 611a
mills per ton per mile is a high figure,
and immense quantities of the big hest
class of freight are carried. It this is
shown it is reasonable that on cheap
commodities like coal and iron they do
not charge more than 51s mills. In
Pennsylvania the average rate on all
roads does not exceed the 515 mills we
ask to have applied to iron ore. In cases
where roads carry little but heavy
freight, they carry for as little as mills
In these roads all the conditions that
tend to cheapness exist but one OF. two
They run three cars back empty, and
the Iron Range perhaps has less de-
sirable grades than some others. But
after making these allowances, the
density of traffic per ton exceeds any
thing else in the country.
"The possible exception is the Eastern
Minnesota, and in recognition of the
consequent cheapness with which they
can carry their traffic they charge only
6.8 mills per mile for all classes o1
freight, at the same time earning more
than any road in the West except the
iron range roads. ..-a
"We shall show that the Duluth &
Iron Range earned $3.50 per train pei
mile for their freight trains. The
Missabe road earns $3.50 per mile, and
there is nothing like it in the country
The great roads of the country are con
tent to earn only $1.45 to $1.65 per mile
The figures include the empty trip OF
the ore cars. This is due partly to the
excessive charges and partly to the
immense train tonnage. Every time the
Missabe moves train a mile it earns
$3.50, three times what other prosperous
roads earn. .,..
"Another test is the gross earnings
per mile. These roads earned per mile
in 1897 about $11, 1897 for each mile ot
main track, while the average earnings
of roads will not reach $4,000 per mile
AS to net earnings we shall show that
in 1897 the Duluth & Iron Range earned
net $62l4 per mile,. and the Missabe
$7187. That is greater than the average
gross earnings of prosperous and solvent
roads in this part of the country. The
average net earnings of the roads are
probably not half those of these two
roads. .s.' NV
"Another test in relation of operating
expenses to gross earnings. The aver,
age per cent of operating expenses to
gross earnings is about 6635 per cent
This percentage increases in proportion
to the density of the traffic, and great
roads of the East consume 70 to IS per
cent. The Missabe road last year
operated it's lines for 36 per cent of the
gross earnings. The 3 per cent tax
would make it 80 per cent. The Iron
Range operated it's road for 4s per cent
These figures only family express the
difference, because the year ending
June 80, 1897, was an off year, and the
calendar year of 1897 will show earnings
at least third larger. This will give