The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-04-09

the Northern Pacific Man Gives a
History of the Road and an Ex-
position of How the Cost and Rev.
enue Per Mile Can or Cannot BE
Definitely Determined.
The hearing in the North Dakota
rate case before Master in Chancery
Lovelle was resumed yesterday morn
ing in the office of Vice President La
mont In the Northern Pacific Railway
company's building. General Traffic
Manager Hannaford, of the Northern
Pacific, was further heard in eXplana-
ton of certain features of the tariff
sheets introduced by him Wednesday.
He was followed by General Manager
]. w. Kendrick, who, in response to a
series Of inquiries addressed to him by
General Counsel Bum, gave a succinct
and lucid statement bearing upon the
general operation Of the entire system.
There was morning and an afternoon
session, the latter terminating on the
conclusion of brief cross examination
Of Mr.. Kendrick by Attorney General
Cowan. The hearing will be continued
this morning at 10 o'clock.
Genral Counsel Bum, early in the
morning session, asked Mr.. HannafOrd:
How do your local tariffs in Mon
tana, Idaho and the country west of
North Dakota compare with those Of
North Dakota and Minnesota"
with the exception of a small dis
lance west Of the Cascade mountains,
where we have water competition, they
are higher than in North Dakota
From your knowledge and expert
ence as traffic manager and from your
knowledge of the business in Wiscon-
sin, Minnesota and North Dakota, state
whether 1t is possible to put in force,
LOCALLY ", North Dakota the "a teS f1yad
by the railroad commissioners Of that
state and maintain higher rates in Min
nesota and Wisconsin, on interstate
business between Minnesota and North
Dakota
Il do not believe it would be possible
to maintain a higher basis Of rates
there, except for a very short time 1t
would not be fair proposition to carry
a higher basis of rates in Wisconsin
and Minnesota than we did in states
west of these"
''How about the interstate business
between Minnesota and North Da-
kota?"
I'VE certainly could not do that"
Attorney General Cowan objected to
the question and answer, as irrelevant,
for which no foundation had been laid
on the testimony introduced.
did I understand you to say that
the business Of North Dakota Is con-
QuCl6Q on the 1Ht6ISlHl6 IdtS DeIWSSu
Minnesota and North Dakota?"
Yes, sir. 1t Is our distance tariff
applying on freight and traffic on main
line and branches east Of Beach,
Mont
By Attorney General Cowan:
How do your trans-continental tar
ifs agree with the tariffs put in force
solely by your own road?"
To this General Counsel Bum object
ed and the witness anSwerinP said.
"Our regular trans-continental tariffs
show proportiOnately as high rates as
our rates in North Dakota. If re-
member rightly our first-class rate Is
on the basis Of So from st. Paul to the
Pacific coast. That does not apply,
however to all commodities. There are
some commodity tariffs that get less
rates."
The witness here explained that
special tariff had been made for some
1900 to 1900 commodities. He said:
Under our western classification, upon
which a large percentage Of our traffic
in fact all east of Washington, Is
handled, certain articles are put in as
first class. In handling these goods to
the Pacific coast against Panama ana
water competition, it was found impos--
sible to carry them all in first class.
They were taken out and put into this
commodity tariff, under the rate that
would be received for handling them.
Articles that appear in the Western
classification under the f1rst-class may
appear in the commodity tariff to the
Pacific coast under first, second, third
or fourth and possibly NTH class. They
are put under the highest classification
we can get out Of it against the water
competition.
What are the elements which enter
into the preparation Of a tariff rate in
such a state as North Dakota?"
1.-THE cost of doing business; the eff
fort to obtain as much money from the
handling Of the traff1cs as is consistent
with its business-like conduct; a dis
position not to cripple, but to build up
Industries, If we can do so; and at
tempting to earn as fair return on
the money invested as possible. I do
not know that there Is any mathemati-
cal calculation that can be applied to
the making of a tariff anywhere In
preparing the distance tariff of Mime
sofa and Dakota we took the whole
territory and considered it as one state.
The distance tariff is the result of an
attempt to make mileage basis for
the rates covering that whole area, the
same general terms are used.
Are any special tariffs given to any
individuals, corporations or other bust
ness concerns?"
mo, SIR
Are any rebates Of any kind given
by your company to any shippers or
other interests from points in or out Of
Minnesota to points in North Dakota?''
mo, sir"
Mr.. Hannaford explained the feature
Of milling in transit Of wheat and ship
ment of flour ground therefrom, and
said this rate was a continuous one SO
far as the progress Of the wheat to the
milling place and its transportation to
a further point in the same direction,
was concerned.
Mr.. Cowan in this connection asked:
$50 far as North Dakota is concern
ed, such shipment would really be
locally to a mill in North Dakota. and
the flour, after being ground, would be
shipped out at the same proportion Of
the rate charged on the wheat from the
initial point, to point Of destination
plus &c per bushel?"
THAT is. the through rate from the
initial point to destination would be the