The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-11-23


in the contracts referred to-.
The Reading company during the last
fiscal year transported 13,735,Sl5 tons of
coal, the average length of haul being
i01 miles, at the rate of seven miles per
ton per mile. the New Jersey Central
transported 6,3O4,S01 tons, with an aver
age haul of los miles, at SO mills per ton
per mile. The contract rate of the
Eastern company, for a haul of 120 miles
is a traction over six mills per ton per
mile one way, but as the train hauling
GRE must be transported empty from
dock to mine, the actual length of haul
of each coal train is 240 miles and the
rate per ton of 2,G00 pounds, but frac-
ton over three mills per ton per mile,
and this rate, as stated, covers switch
Ing. transportation, dockage, and the cost
of loading onto boats. 1t is also to be
borne IN mind that coal Is transported
throughout the year, whereas ore is not
transported In the winter season, and
ore equipment must lie idle during four
or five months of each year.
(e) The Eastern company does not own
the docks upon which ore transported by
il is unloaded and stored. Such docks
are very expensive structures. The cost
of their maintenance is large, because
the Hsnber of which they are constructed
p exposed to SE2 weather, and is rapidly
wasted and WCEn where 1t comes in con-
tact with ore.
(f) The transportation of ore requires
special equipment, strong, adapted to the
use, and not fitted for any otheS use, I'M
less it be the transportation OF coal 1t
disc or freight. The Eastern company
has, under contracts which it has made
with shippers, and for the purpose of
reaching ore mines, constructed many
miles Of railway at large expense, ana
purchased equipment for hauling ore at
outlay of nearly $l,O00,OOO.
The cost of the construction Oh ran
ways to reach ore mines and of the equip
ment necessary for the purpose would
not have been incurred except in con-
sideration of contracts which 1t has
made covering the shipment of ore. 1t
is dependent on two or three mines and
upon contracts with the owners or opera
tors Of those mines, SO far as its ore
shipments are concerned. Should these
contracts be Cancelled should the mines
become exhausted, should the owners of
the mines construct an Independent line
of railway reaching docks on Lake SUI
perfor,. or arrange to make shipments oy
way of competing lines, the Eastern COM
pany would lose millions of dollars on
account Of investment in railway con-
Struction and its equipment. It's con-
tract rate was made in view of risks in
cident to the business which it assumed.
The quantity of merchantable ore which
can be reached by its line is limited.
The quantity of ore within the mining
district reached by the lines of the other
companies named in the resolution Is
limited and the limit can be shown with
reasonable certainty by the testimony
of experts familiar with the locality; the
character Of the ore, the extent of the
deposit and the conditions surrounding
it. Should the mines in the mining dis
tricts become exhausted, as they will
in time, there Will be no use for the
lines of railway, or a very considerable
portion of the lines, reaching the diS
tricts, or for docks which have been
constructed at a very large expense for
the purpose of storing ore for shipment
by lake.
(g) The production Of ore in the United
States is very large. The market is linn
tied The supply is greater than the de-
nd IN fnG of q nc or
tation over the line of the Eastern COM
pany and the lines Of the other com
panies named in the resolution will not
benefit mine owners, but will, in the end,
make a. proporuonate reduction in the
selling price of the ore.
AUTHORITY IS DISPUTED.
The commission has no authority to
investigate contract rates on shipments
of ore. Should it proceed with the m
vestigation, with view of inquiring into
the reasonableness of rates, the Eastern
company asks time to enable it to pre-
pare testimony to prove:
(a) The circumstances under which it's
contracts for transporting ore were
made.
d. The cost Of construction and re-
construction of its railroad, its structures
the equipment used in transporting ore;
and the cost and operation of it's road,
especially in connection with its ore
traffic.
(c) The cost of docks and their main
tenance by the company which owns and
has constructed them, also the cost of
storage charges upon such docks, and Of
loading boats from them.
I'D In Investigating cost Of operation
account must be taken of the fact that
ore is not transported in the winter sea-
son, and that a large and expensive
equipment lies Idle nearly one half Of
the year.
CONCERNING THE LOG RATES.
The Eastern company has no published
.ka{f of
logs are transported over it's line under
contracts with lumber and logging COM
panieS at rates fixed in the contract made
in consideration of privileges, advantages
and conditions attending each particular
contract.
The reasonableness of such rates in
wolves an inquiry:
Into the contracts and their considera-
into the cost of equipment specially
adapted for the purpose.
Into the cost of railroad, branches and
spur tracks. constructed for the pur-
into the term of the contracts; the
quantity of logs and the probable length
of the traffic.
DETAIL ON MERCHANDISE RATES
An investigation of the merchandise
rates requires:
An examination of local shipments be-
tween all the stations upon the line Of
kn examination of the way bias of each
/ shipment.
| The separation Of the local from the in
| terState shipments.
! showing of the classification under
which each shipment has been made.
An investigation of the rates OF the
J Eastern company on the classes OF traffic
/ referred to u the resolution OF the com
mission, involves an inquiry into the
| earnings and income of the company.
! It's line is interstate. A large part Of Its
! business is interstate. It's rates are not
! unreasonable, nor are they unjust. Proof
| of the facts bearing upon the question
! will require the production of testimony
based upon an examination OF way oilis
! the separation of local from interstate
! shipments; a classification OF the ship
! mentS.
IT'S JURISDICTION IS DENIED.
Denying the jurisdiction of the com
mission to proceed in the matter en-
! braced in the resolution, the Eastern
company. should the commission contin-
| lie the inVestigat ton, claims that it has
right to be heard, especially as respects
shipments of ore and the reasonableness
/ Of it's contract rate therefor, because,
! though interstate, a reduction of the
! contract rates of other railway companies
named in the resolution would neceSsa-
| rily involve a corresponding reduction
! in its charges for transporting Gre, and
! 1t would have to handle the business
at an unreasonably low rate or abandon
| it. thus sacrificing hundreds Of thousands
| Of dollars expended in purchasing equip
ment and constructing railroads solely
for the purpose of engaging in the traf-
! fic.
The Eastern company Is not prepared to
make proof upon any of the matters in
volved in the investigation for the follow
| ing reasons:
It's chief engineer was absent when the
notice Of the resolution was served upon
it and has not been in the state since
| the date Of such service. 1t Will require
at least sixty days in which to make
penses incident to the traffic, the exam
nations for the purpose of showing the
| cost of construction and reconstruction
of its line Of railway, the cost of docks
and their maintenance and operating eX-
| Oensas incident To the traffic tho exam