The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-12-08
..EID|NG ORE RITE GASE
: ABROAD AND WAREHOUSE COM
MISSION SPENT A BUSY
DAY
.vIDENCE OF MIssABE ROAD
Is Claimed That Present Rates
Are Equitable and That
Lower Tariff Would
Mean Loss.

The hearing of The iron ore rate case
Gas continued yesterday before the rail-
aad and warehouse commission. The
use of the Missabe & Northern was TAX
4 up, and Attorneys Murray ard Cotton
ere present to represent their company,
lille T. D. OBrien conducted the states
de Of the controversy.
Statistician Yapp, who was the first
witness called the day before, was cross
xamined briefly by Mr.. Murray, after
which the railroad placed its witnesses
pom the stand. The examination con-
umed the entire afternoon.
j. P. Hansen, Of Duluth was the fist
witness for the railroad. He is auditor
md general freight and passenger agent
or the Missabe and testified as to the
rOcrectneSs of six tabulated statements
unlimited by the company, which were
introduced as exhibits in the case.
'hese statements dealt with the cont
nOdities hauled over the road during GER.
ain periods, the cost of transportation,
evenue derived therefrom ana oth:.r sta
sticGl facts. Mr. Hansen stated that
he principal traffic of the road is iron
ore, which embraces from 50 to So per
ent Of the entire freight traffic. This.
ne said, has been true of the road ever
ince its organization. Taking the min
'ng, timber and coal hauled over the
road during an average season, the wit
ness stated that it would amount to
r; bout per cent of the entire traffic, and
hat this coal and timber was hauled en-
tirely for the mines and miners with
whom the road is doing business con-
Stantly.
According to the testimony of Mr. Han
zen, there were hauled during the
months, January to November 26 of the
resent year, 142,463 ears of ore. THIS
was transported from the range to Du-
nth, and of these cars but / 9S6 were re-
urned to the mines loaded. The remain
ar being taken back empty.
The roads are attempting in this char
acter of testimony to prove that there is
a great loss sustained in hauling empty
cars.
The statement for the log business for
he year ending June so, 1900, showed the
number of cars used to be 10G23; the
total mileage covered $50, 1872; tonnage in
pounds, 521, 90, 1926; revenue from this bus
mess, SIG, OF. The average earnings per
car was shown to be SIG.
Figures showing the number Of cars,
the tonnage. etc, in the transportation of
mining timber were also produced. The
total revenue to the road from this
source during the same year was Sc, I25.54
and the earnings per car $6.0S.
Mr.. Hansen stated that since the COM
pany had been advised by the Commits
sion of the contemplated investigation,
pains had been taken by the company
to have every way bill of the past month
of September carefully examined and a
classification of all freight handled dur
ing the past month made. This required
two men at we'd 1i2ht Gays The witness
testified that if the rates which the
commission sought 10 have adopted We're
made effective it would reduce the earn
ingS for a period similar to last SeDtem-
Der about $1,000, and would increase the
revenue Of the company on certain COM
modities.
The same witness also gave the meth
I'D which the company has in practical
use for allowing carload rates to its
shippers at Duluth. The merchants
ship a variety of goods to a variety of
customers and the company eXacts the
highest terminal rates. This method
would be impossible, they contended, if
the rates were adopted.
DULUTH MEN ON THE STAND.
John L. Cochran, of Duluth, clerk
in the auditors office, was the next wit
ness. He had the work of examining all
the waybills under his charge. He tes-
titled as to the facts brought out by that
examination as shown in the case and
confirmed the testimony of the preceding
witness.
George H Crosby, a real estate man
of Duluth, testified next, Mr.. Crosby
and four other real estate men had
been employed by the Missabe company
to make a trip over the road for the
purpose of arriving at estimates of value
upon all the real estate. The report
of this committee was submitted for
evidence in the case, and Mr.. Crosby
was kept on the stand for some two
hours, during which time he was eX-
amined by the railroad attorneys and
ross-eXamined by Mr. O'Brien for the
state.
EARNINGS ARE NOT HEAVY.
The object of Mr.. Crosby's testimony
was to show that in comparison with
the cost of construction or reproduction
IF the road and the actual earnings the
latter is not great. In attempting to
show that the earnings were only mod
crate relatively, the percentage was
reckoned from the cost of reproduction
of the road at the present values of The
land through which it passes. Mr..
O'Brien declared this theory to be alb
surd holding that the actual cost of
construction and the land values at that
time should prevail as the basis of this
calculation
According to Mr.. Crosby's testimony,
the total real estate of the road, eX-
elusive u iIlDION 6lIIellSy Is valued dl
$1,465, 600. The witness admitted that
when the committee which made this
examination began with their work
there was a disagreement among them
as TO the conclusions that should be ar
rived at, but that the report submitted
was finally concurred in by the entire
COMMITTEES.
Mr.. Crosby testified that the acre prop
erty through which the AIissabe road
passes in the vicinity of Duluth ranges
in value from $3.50 to $500 per acre. He
said there was no land traversed by the
road worth less than So per acre. Its
value is based chiefly upon its adapta-
bility for farming purposes.
In answer to a question from Mr..
O'Brien as to whether or not in arriv-
ing at these conclusions the committee
took into consideration the value Of the
ore in the land, the witness replied
in the negative. He was asked why
the land traversed by the Superior spur
was rated at $500 per acre and stated
that II was the surface value Of the land
Mr.. O'Brien contended that since this
land is held with a shifting clause in the
contract, the company virtually pays $500
per acre, or total of 5000, for the
privilege of running its tracks over that
strip of ground.
On motion of Commissioner Becker the
commission adjourned until o'clock this
morning.