The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1900-12-28
ORE RATE CASE.
The Case Settled Satisfactory to the Com
nissioners But Not the Roads.

INC case settled Satisfactory to the Com
missiOners But Not the Roads.
Late Friday afternoon the railway
and warehouse commission issued two
lorders in the iron ore rate cases. one
TO be served on the Duluth, Missabe
q Northern and the other on the Du-
luth q Iron Range. The case against
the Eastern Minnesota was dismissed.
These orders will be served upon the
cOmpanies today.
The rate Of the Missabe road. which
has been 80 cents per ton on ore. was
reduced to 60 cents, and those in
effect on the Duluth & Iron Range
road. 80, 80 and 100 cents, were reduc-
ed respectively to 60, 70 and 80 cen g.
The order was made with the unani-
nous vote of the commission.
The rates as ordered by the COM
mission contemplate a reduction in
the net earnings OF the Missabe road
OF about S1,OOO,OOO, which, on the
basis of last years surplus. would
leave a netincome of $451, OS9. I6.
LII the same per cent of reduction is
caused in the net income on the Dull
nth u Iron Range road, their net
earnings will range In the neighbor-
hood of S56O,OOO.
The commission believes that these
net incomes represent fair incomes
on the capital invested, aud, upon
that basis, contend that their action
is not unjust.
A. X. Teisberg, secretary of the
state railroad commission has served
the notice of reduction in ore rates
On the Duluth, Missabe & Northern
and the Duluth & Iron Range roads.
Roughly figured, with a business of
the ore roads for 1900 as basis, the
reductions would cut off SI,577, 900 of
the earnings OF the three ore carving
roads of Minnesota. While the COM
mission does not act in the case of the
Eastern minnesota, the result will be
the same, as the rate on one ore road
would fix it upon another. The COM
mission, as has already been stated.
fails to order Il reduction on the East
ern Minnesota because that line is an
interstate one and consequently tile
state commission has no authority.
The same schedules of ore rates for
the Missabe and Iron Range are: Re-
duction from so to go cents ton from
all points on the Missabe road; from
81 a ton to so cents on the Duluth &
Iron Range from Ely; from 80 to 70
cents from Tower and from so to go
cents from all Mesaba range points
on this road.
The Duluth & Iron Range road I'M
der the reduction, and on a basis of
this years ore business, would suffer
"a loss of.about $715,000. Figuring in
the same manner, the Mssabe's loss
would be about 1922, 600, and the East
ern would come in for a reduction of
about S240, 900. making a grand total
Of ST $4,000. The railroad commits
SION tinus no fault with the miscella-
neous rates of the Duluth 81 Iron
Range and Missabe roads, but in the
case of the former it is required that
the logging, lumber and shingle rates,
which were cancelled Dec. 1, be re-
stored. The Iron Range has hereto
fore held that it has no logging rates,
and made none except under special
While the railroad commission has
put in a new schedule of ore rates it
is generally understood that the fight
has just begun. The two roads upon
which the reductions have been ord
cred have 30 days in which to appeal.
ask for reopening of the case. for in
junction, or whatever course they
may decide to pursue. The present
will go out of existence
Jan. 6, and the newly elected commits
sionerS will assume the duties.