The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-09-17

CHICAGO, ILL.,, Sept. 16.-When the
Minnesota state railroad commission
reconvenes to further consider the iron
ore rate case it will be at Duluth next
Wednesday, The Cleveland and Chi
cago hearings closed this afternoon
with the examination of President E. z.
Ripley, of the Santa Fe road, and that
OF Vice President Earring, in charge of
the operating departing of the Mil
waukee & ST. Paul. Mr.. Earring had
been furnished by the defendant roads
with set OF questions covering all the
points at issue, from railway oper-
ating standpoint, and he answered
them from prepared manuscript
His own road, he said, has ore traffic
to Gladstone from Menominea and Mar
quette ranges, handling in the just
closed fiscal year over half a million
tens of ore, which, he stated, brought
so little revenue that if the road de-
pended on it it would go out Of bust
ness, though the rate is 69-100 cents per
ton per mile, somewhat more than the
complalEants in the present action de-
nland that the Minnesota rates shall be
made, and the Milwaukee has no ore
terminals and terminal charges to pay.
Both Mr.. Ripley and Mr. Earring
were positive that no comparisons
could be made between roads nine
tenths or more of whose traffic is ore,
going one way, and condensed into half
year, and such great Eastern roads
as the Erie, New York Central, Lehigh
Valley and others, which have steady
general and both way traffic. They
characterized as unfair the tabulated
comparisons offered early in the case
by the cOmplainants.
Mr.. Ripley said the rate per ton per
mile didn't mean mucn anyway; it was
a fetch or idol that people are ac-
custOmed to bow down to, but such
comparisons gave very little satisfac-
ton and some roads with lowest rates
made the most money.
Both witnesses thought investments
In iron ore roads extremely hazard
Gus and investors entitled to not only
a fair return, but also to the establish
ment of a sinking fund that should
mature in, say twenty years. The in
come account, they asserted should be
charged with maintenance, which was
peculiarly heavy in the case Of ore
roads. The maximum Of depreciation
on such roads would be reached in ten
years or less, by which time about ev-
erything on the road would have been
replaced.
Mr.. Ripley testified that the $50, 900
per mile cost for Iron Range road, In
Guiding double track, was probably
the heaviest of any road in the West
ana DOCn nImSelI ana Mr. Earring al
legged errors in the tables introduced
by the compliments, where the entire
length of the track had been taken as
a basis of the computation for show
ing the high charges on the iron roads,
and argued that the main line distance
between the terminals should be taken.
They stated that the shorter the line
more and more Of the total receipts
were taken by terminal costs.
Mr.. Billson secured from Mr.. Ripley
the statement that the terminals on
Eastern and trunk lines might cost 40
or so per cent Of the entire expense Of
construction, and that therefore costly
ore terminals were not so unusual a
factor after all. But he shook the wit
nesses but little Mr.. Earrings testi-
mony especially being almost an argu-
ment of itself.
The hearings here and at Cleveland
have shown a preponderance of evil
dence for the defendant roads, though
considerable Of it was, Of course, given
by interested parties. The entire case
apparently will simmer down to this
one main question: Are these roads
making more than a fair return. If to
operating expense is added mainten-
ance and sinking fund to retire the
bonds by the time the resources are
exhausted?