The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-06-27
RAILROAD COMMIssION SORTS OUT
THE WHEAT FROM THE
CHAFF
HEARING IS SET FOR SEPT. 4
FINAL Disposition of the Tariff AID
Classification Inquiry Will
he Made at That
Time.

The case to such a point that they were
able to name Sept. as a date upon which
the final hearing is to be hsld. July II
the commission will submit schedule Of
merchandise rates to the several roads
represented, and two days prior to the
hearing they will be required to file an
swcrs showing cause why the schedule
should not go into effect. The objections
will be argued at the hearing Sept 4. All
the roads operating in the state were
either directly represented, or interested
bv proxy. The railroad men who appear
ed before the commission to take part in
the hearing We're:
Chicago, Milwaukee & st. Paula. c.
Bird. vice president; Geo. r. Peck, gen
eral counsel; W. E. Kittridge, superin-
tendent: e D. Sewall, assistant general
freight agent.
Chicago. Great Western-F. B. Kellogg,
general counsel; p. c. Stohr general traf-
Sic manager.
Minneapolis & St Louisa. E. Clarke,
general solicitor
Northern Pacifc-C. w. Bum, general
counsel
Great Northern-M. D. Grover, general
counsel: w p. Clough, vice president.
Omaha-Thomas Wilson, general solic-
ltor
Chicago & North-Western-L w. Bow
crs. general counsel
The hearing commenced at 10 o'clock
Yesterday forenoon. The feature of the
opening session was an address by Vice
President A. G. Bird, of the Chicago, Mil
Uaullee * St. Paul. upon the subject of
terminal ard distance tariffs, which con-
tanned a technical and comprehensive eX-
position Of the subject in fullest detail.
Mr. Bird gave careful consideration to the
differences between tariffs of rates out of
terminals and distance tariffs, showing
that from 10 to 10 per cent differential had
always been made in favor of terminal
rates. He argued that terminal rates
originated from the fact that the Twin
cities years ago We're recognized as the
center of an immense business, and that,
i'm view of this, rates We're made to pro-
mote the terminal industries and to facili-
tate their trade with interior points.
From the immense amount Of business
centering here the different roads felt JUS
tiied in taking a lower rate, the decreased
ratio of expense Of transportation being
an important factor. These rates have
been maintained on substantially the
same grounds. He held that the present
differences between distance and terminal
merchandise tariffs were the outgrowth
of natural conditions and the effect of
competition.
During the morning discussion, as well
as all through the day, the arguments re-
verted first 70 rates and then to classifi-
cations, and both questions were mixed up
in such a way as to become almost in
comprehensive except to those familiar
with the subject. The commissions case
was handled by Gen. Childs, and during
the morning f. B. Kellogg, for the Great
Western; General Solicitor Clarke, for the
Minneapolis st. Louis, and number
of others We're heard in arguments on
both points Much of the discussion in
VOWED minor points, and the morning
was spent apparently in securing a COM
mon ground by explanation between the
commission and the railroad representa-
tives.
At the opening Of the afternoon session
Vice President Bird went upon the stand
again to explain the formation of the
w estern classification, which governs
freight rates in territory west of the great
lakes. His testimony was called for with
view Of settling questions arising from
complaints before the commission classi-
ncauOns affecting shipments of Minnesota
freight.
Mr.. Bird explained that the Western
classification, applying in a wide extent
OF country, is necessarily subject to in
dependent action of different roads at
times when the classification works
modify tariffs were introduced and during
the past thirty or forty years have been
used with success in adjusting local
troubles. The classification is recognized
by all roads as fair and equitable; the
best general rules which could be foruu-
lated. MIR. Bird answered a question of
the commission indicating a disposition
TO make classificatiOns in specific in
stances for Minnesota shippers by stating
that no better adjustment +bo,, ,,,,5o,- =
Western classification could be obtained.
He believed that state commissions could
do little, on account of the varied inter
ests involved and the wide influence on
outside lines, from changes in state rates
He stated that the general procedure of
railroad commissions in the eight states
where the Milwaukee operates has been
Ia lodge complaints against classification
troubles then TO make orders adjusting
the specific instances, after which COM
modify tariffs were made to cover the
local disturbances. Any Other method of
remedying the defects of the classified
ton, he stated, would be a step fifty
years backward.
General Counsel Grover, of the Eastern
Minnesota and Great Northern roads was
called upon, but made only a brief state
nent.
we have not brought any one to show
how and why cur tariffs are made, or to
demonstrate their reasonab Ieness, for tie
reason that the subject for consideration
at this hearing as laid down in the notifi-
cation Of the commission, was too broad.
If the commission will select specific in
stances showing our rates to be unreasor-
able, we will be glad to answer these
instances Individually and will gladly
make an effort to adjust the unequal con-
diCons"
Col. w. P. Clough, vice president of the
Great Northern, then took the stand and
entered into an explanation of the reasons
why present tariffs are considered reas-
enable. Il do not think it would be pro-
per or possible" said he, Ito separate
one tariff from another and to consider
either distance or terminal tariffs as iu-
diVidual rate sheets. Their duties are
closely bound together and one affects
the other. Great Northern tariffs are
made on the theory that grain and the
other staple products of the Northwest
going To market, are entitled to lower
rates than commodities shipped out of
terminals Northern Pacific tariffs, be-
lieve, are made upon the same theory.
Our present rates are so made, ana by
making an exceptionally low rate on the
products of the farmers, we think we are
Justly entitled to higher rates on COM
modities going out to them. Conditions
of rates averaged over term of years