The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-11-23
WILL Be HEARD DEG. J
ARGUMENTS AND TESTIMONY AS TO
IRON RANGE FREIGHT AND
ORE RATES
THREE ROADS ARE INVOLVED
Duluth & Iron Range, Duluth,
Missabe GS Northern and
the Eastern Min
RcSOtR.


roads of the state appeared at the COM
missioners office yesterday afternoon for
the hearing upon the rates now in vogue
for the transportation of iron ore. The
session lasted for some two hours and
terminated in a decision to actually be-
gin the hearing Dec. at 10 a. m.
Counsel representing the several par
ties were the following: Eastern Minne-
sofa, NJ. d. Grover; Duluth & Iron
Range, Frank B. Kellogg; Duluth, Mis-
sabe & Northern, George Wildwood
Murray and James s. Cotton. T. l..
O'Bren was there in the interest of the
commission.
AIR. Kellogg was the first of the cCin-
BEL to address the commission. He plead
for a continuance of sixty days, in which
to make answer to the notice served
upon his company, urging that it would
be impossible to prepare the case in any
less time. He argued that he had not
attempted any preparation OF the case
since the receipt of the commissioners
notice, on account of other matters oc-
cupying his time. Mr.. Kellogg stated
that he, having conducted the company s
case in the hearing had two years ago,
was the only attorney prepared to pro-
coed with the present case He said
that it would not be possible for the tes-
timony used in the former action to be
made use of now as the conditions had
changed and complete revision would
be necessary.
Commissioner Knox asked Mr. KEEL
1ogg if he had not understood that the
notice served upon his as Well as other
companies last January, pertaining to
merchandise rates, involved also rates
upon iron ore Mr.. Kellogg replied that
he did not so understand It, That I'M
Outstanding was logical from the notices
as viewed from the commissions stand
point, but none of the roads had so tax
en- it.
EASTERN's POSITION.
Mr.. Grover, for the Eastern Mime
sofa, submitted the following:
The Eastern Railway company of Min
nesOta, herein for convenience called the
Eastern company, appears pursuant to
notice in the matter of the investigation
of rates embraced in a resolution by the
commission, as follows.
Resolved, BY the railroad and ware
house commission that it do now pro
coed upon its own motion to investigate
the reaSonableneSs of the tariffs of rates
now in force for the transportation of
iron ore, logs, lumber, and all other
freight, merchandise and commodities,
to the city and port of Duluth, and the
port at Two Harbors, from the several
stations in Minnesota on the lines of rail
W2V of the Duluth and Iron Range Rail
road company. the Duluth, Missabe and
Northern Railway company, and the
Eastern Railway Company of Minnesota.
and between the several stations on the
above lines of railroads. and the tariffs
now in force for the transportation Of
the merchandise and commodities in car
loads, between the several stations on
each and all Of the said lines of railroads
within this state, and OF the classified
ton under which such rates are deter
mined"
No complaint has been made that the
rates referred to in the resolution are
unjust or unreasonable. The resolution
does not state that the rates are unjust
or unreasonable. There being no COM
plant as to the reasonableness of the
rates, either by the commission 9th
ers, the jurisdiction of the commission
Is denied.
The Eastern company have been nOt-
fed of the resolution of the commission
and the proposed investigation of its
rates in case its objection to the juris--
dictiOn of the commission is overruled
and the investigation proceeds, proposes
to estab iSh by evidence facts, as follows:
AS TO ORE RATES.
The Eastern company has not made or
published any tariff of rates covering
shipments of iron ore to Two Harbors,
TO Duluth, or to any point in the state
OF Minnesota. The Eastern company
transports iron ore from mines reached
by its line Of railroad and branches to
docks at Allouez bay on Lake Superior,
at so cents per ton of two thousand two
hundred and forty (2,A0) pounds, under
and as part of the consideration of con-
tracts between 1t and shippers of ore. The
rate named in It's several contracts Is
uniform and was made in view of facts
and circumstances connected with the
business and set forth in the contracts.
No rate is published respect ng shipments
of ore, except q statement filed with the
interstate commerce commission showing
that ore is shipped in carloads with a
minimum of $4,000 from Mahoning and
Hibbng, Mimi. to AllOueZ bay, in Wis
consin, at so cents per ton of 2,240 pounds.
This is a contract rate and not a pub
nShcd tariff rate, and it covers the mat
ter of construction of branch and spur
tracks, the switching of cars to and from
mines, and charges for dock storage and
Tor loading on boats. The other railway
companies named in the resolution tram
port ore under contracts involving switch
Ing, dock storage and loading onto b ats
at 50 cents per ton of 2240 pounds. The
rate OF 50 cents per ton of 2,240 pounds is
not unjust or unIeaSOnably high.
ta) The distance from mines reached
by the line of the Eastern company to
docks at Allouez bay, to which ore Is
transported, is about 120 miles. Ore Is
hauled in train loads The traffic IS one
way. The trains are hauled empty from
the docks to the mines, because there is
no return traffic and. because cars used
in transporting ore are especially adapted
for that and no other use. The haul of
each train load of ore from mines to
DOCKS involves the return of an unloaded
train like distance. In short. every
Train hauling ore from mines to dock and
return, moves 100 miles, and the rate has
ed on gross ton of 2240 pounds. is but
traction over three mills per ton per
mile; taking into account the total mile
age OF the haul necessary to the move
ment of every train load of ore, based
upon tons of 1900 pounds, the rate ls
within fraction Of three mills per ton
per mile
Cb) There being no tariff rates. and
the charge made being a matter of con-
tract, covers not only the construction of
bIanch and spur tracks, so located as to
be convenient for the breaking UP and
making up of trains, but the switching
OF empty cars to mines, moving of cars
from mines to yards to be placed in
trains, the transportation of trains to
docks, the storage upon docks and the
loading. without charge to the shipper
of ore, from docks into boats
(c) Delivery IS made to railway COM
panies at elevators, warehouses or sta
tons, on its line Of grain, lumber, coal,
merchandise and all classes of freight
Tariff rates cover this item of transpor-
tatton from place of delivery to place of
consignment and do not embrace loading
unloading or storage charges Should
the railway companies put in force a tar
III of rates on shipment of ore from
points on their lines, such tariff would
relate solely to ore delivered to them
for transportation at the points named.
To make such delivery would require q
team haul or the construction Of rail-
-SHaV- and the use Of necessary eQuiDYnent
There is no mine opened and worked on
the line Of the Eastern company which
is not reached by It's tracks, and the
Shipment OF ore from which is not COW
cred by contract relating not merely to
the cost of transportation but involving
the construction of branch lines. wards
spur tracks, switching, dockage charges
and the loading from docks into boats.
SOME COMPARATIVE FIGURES.
(O Coal, though less valuable than
Iron ore. is a class of freight the rates
upon which may be referred to for ~ ~,
poses of comparison. The commission
has by its order, as Is understood lived
pr approved rates on hard coal from Du-
futh to st. Paul, a distance of about I'm
miles, at rate yielding s mills Der ton
per mile. On soft coal at mills nsr f0r
per mile. The coal Is loaded and unload