The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-07-04
news OF RAILROADS
SLOPE JoBBERS ARE INFORMED
THAT THEIR PRAYER CAN
NOT BE GRANTED
NORTHERN LINES ANSWER

Railway Notes.
The two northern transcontinental lines
came to decision on Saturday in the
matter of the rate difficulties discussed
at the meeting held at the Ryan hotel on
May % and "a. at which representatives
of the jobbing interests of the Pacific
coast. Middle West and North met. The
decision was kept a secret until yester-
day. in order that copies of the findings
of the reads might be received in San
Francisco before being announced here.
1t favors the Middle West jobbers and
refuses the request of the representatives
of the Pacific coast wholesale and job
bling interests for a revision of transcon-
tinenlal rate sheet, R. S. 1SS, and partic-
ularly amendment to the west-bound
tariff &c, now in effect on both the
Northern Pacific and Great Northern.
The decision Is one of the most import
ant announced IN years, and is of vital
effect to jobbers west of the Mississippi
and at Pacific coast points. Western men
held in the conference at which the re-
vision was demanded, that the continu-
ance of the tariff worked an injustice to
them, giving the jobbers OF the Middle
West advantages in their western terri
tory which they should not have, and
Offering a chance of competition which,
they claimed, would in time ruin their
trade. The next important feature of the
decision is the outspoken declaration of
the two roads in favor of graded rates
for shipments West, as against the theory
of postage stamp" rates. The decision
gives attention to the argument presented
by the Western men. that both roads
had departed from their fixed principles
in making commodity rates not based on
value. density. liability to damage, and
liability to damaged goods shipped in the
same car, declaring that no such prin-
ciple ever existed. and that the rates
were originally put in effect with refer
ence to water competitio
The findings are based on a digest of
the accumulated documents of the con-
ference held in st. Paul. and are in the
shape of a letter addressed to w. r.
Wheeler, chairman of the tariff commit
Tee of the Western jobbers' organization.
San Francisco, and signed by julie NJ
Hannaford, vice president of the North
ern Pacific, and Darius Miller, vice pres
ident of the Great Northern The de-
Referring to the correspondence that
mas passed between Us and the confer
ehce between the Jobbers of the Pacific
coast, the Middle West and ourselves.
held at the Ryan hotel. st. Paul, Mimi,
May - and "A, 1899, and especially to the
able arguments presented at that time
by the committee from the Pacific coast,
OF which you We're chairman, requesting
Inc cancellation of Tariff No. S. R. 1888:
Since hearing the arguments for and
against the cancellation of the tariff in
question, we have given the matter much
thoughtful consideration. Without en-
teflng into a discussion as to whether the
transcont1nentaf tariffs that have been
issued in the past, or even the Tariff No
=, issued after the Milwaukee meeting
ana the subsequent issue, S. r. 1873. are
consistent or not. we claim that they
nave all been issued with an earnest de-
sire 10 make them so, and have been the
best efforts of the, parties to same NOV
ed by desire to provide rates that would
produce reasonable revenue for the car
rlers, protect all interests discriminate
against none, and at the same time pre-
serve harmony among the various trans
portallon interests and meet the. cOmpe-
issuing them.
1t is true that No. s. r. 1888 lessons the
carload differentials on certain articles
covered by same over the rates in No
<, Dut not to an unreasonable extent
We believe. The wholesale shipper still
mas as great, or greater, advantages on
account OF the freight purchasing ahiH-
ty, as is given in any other part of the
country As shown by the statement ac-
Companying the argument left with us
"a se GILe[entl ais now are from 10 cents to
oO cents per lOO pounds, or an average Of
about 30 cents per 100 pounds, on rates
made very low by the necessities of
demonstrates that many of the different
tlalS on commodities of important tom
mage run as high as so per cent of the
freight rate.
On class rates to the Pacific coast.
which would prevail if it were not for
water competition and which we believe
nave been arranged on a fair basis the
dinerential averages about q per cent
Inc ocean carriers between the Atlantic
ana racine coast points make practically
no distinction in rates as to quantity.
and so far as water competition is CON
carned, the rates on carloads and less
should be the same.
10 Montana common points, a large
and important territory, where our gross
earnings are nearly as great from
through business, and where the COM
pettlYe water conditions prevailing at
the racine coast are not felt, and hence
commodity tariffs are few the differen-.
tial between carload and less than car
load rates on similar freight averages
less than 30 per cent.
The principal contention you make, as
we understand you, is against what you
postage stamp rates, destroying, as you
claim, your natural advantage of Ioca-
ton which enables vessels to load the
manufactures of the Atlantic seaboard
embracing almost everything found in a
hardware store, as well as other lines of
trade, at New York or PHILADELPHIA and
land them at our doors at the lowest pos
sible cost"
This is a question where our interests
are so seriously affected that, although
the system of graded rates may be dan
gerous to our interests, we must disa-
gree with your suggestions and attempt,
with due Difference to the commercial In
terests of the whole country to break
away from the old plan of postage stamp
rates and establish a graded basis.
II the principle Of applying postage
stamp rates from the territory west Of
the Atlantic seaboard is a correct one
then the application of postage stamp
rates to all territory east of the Pacific
coast Is equally correct. If it is right
sources of supply in the East. 1t is equal
ly right to apply postage stamp rates to
the points of consumption in the West
such application of the postage stamp
principle would make the rates from the
Atlantlc to the Pacific coast the maxi
mum Tor all intermediate business. Such
an adjustment of rates is not what either
of us desire. 1t would restrict your ter
rltory IN the interior and seriously affect
your jobbing business, as well as be
ruinOus to our revenue
If the basis of making greater rates
from or to points back of the sea coast
is fair or right, there are but two ways
to meet the question: One Is to increase
the rates back from both the Atlantic and
Pacific coasts, and the other is, as you
have so well put 1t, to compromise it in
some way that will be fair and afford a
reasonable protection to us all The first
give you very restricted source Of sup
ply; 1t would greatly reduce our revenue
by forcing the traffic to the Atlantic sea-
board and compelling US to accept our
minimum percentages of the lowest rates.
forced by water competition; nor would
1t be to the interest of the producer or