The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-01-10


business, the fault rests with him or is
owing 10 TO the disadvantage Of his loca-
tl9n, The law and the public service
afford him an equal opportunity.
After disposing of these matters, which
seemed to the board most urgent and
important, the commission took up the
investigation of the ore rates in the min
ing region of the state Complaint had
been made at various times that the prin-
cipal mines and ore carrying roads were
owned or contr oiled by the same interests
and that such rates were established for
the transportation of ore as precluded
lndepenent miners or mine owners from
operating their properties. hearing
was fixed for the 22nd of November and
the companies appeared, viz: The Du-
luth & Iron Range Railroad company,
and the Duluth, Mesaba & Northern Rail-
way company. The Eastern Railway
answer, but the proceeding was dis
missed as against it, for the reason that
it is an Interstate carrier, it's ore docks
being located in Superior, and therefore
not subject to the jurisdiction of the
commission. The evidence taken, which
has been Transcribed and is available for
your use, to my mind fully establishes
the charges referred to. The rates which
have been in force, as formerly publish
ed, were soc per gross ton from all points
upon the Duluth, Mesaba & Nor thern
Railway company to Duluth. Upor the
Duluth & Iron Range railway to pu-
luth and Two Harbors, 81 from ely,
from Tower, soc, from Mesabi Range
These rates, or the charges actually coll
lected, whatever they may have been,
have resulted in earnings which Tor the
year ending June co. 1900 enabled the
Duluth & Iron Rang Railway company to
pay taxes, interest on its funded debt,
and have a surplus of $l,540,O95 Al
capital stock, this would still leave
surplus of over $1,360,000. Upon the same
basis, the net surplus of the Duluth,
Mesaba 4 Northern Railway company
Indicates
that there were just grounds for the
institution of the proceedings. and Tor
the reduction of rates as ordered 10y the
commission. The commission estab1shed
a rate of 60c per gross ton to Duluth Tor
the Mesaba & Northern Railway com
pany, and the following rates on the Du-
luth q Iron Range railroad: From Ely,
soc; from Tower. zoe; from the Iron
Range and all other points, Coo. 1t was
also established at the hearing that the
transportation of ore constitutes upwards
of 80 per cent of the feight business OF
the two roads. In view of the attitude
Of the companies at the hearing, 1t Is nor
at all likely that the rates estapnshie9d
by the commission will be voluntarily
put in force by the railroads, but that
is matter for future development ara
action. The feature of this nearing. 10
which l especially desire to call your
attention is the fact that at an ad-
journed meeting of the board during the
progress of this hearing, on Dec. l6, 199o,
the Duluth & Iron Range Railroad com
rany by it's general counsel, Mr.. Chand-
Ter filed a communication with the COM
mission of the following tenor:
Duluth, Mimi, Dee. D.
'"To the Railroad and Warehouse Com
mission Of the State of Minnesota;
"Gentlemen-The Duluth & iron Range
Railroad company having Withdrawn ana
Cancelled the tariff of rates on iron ore
dated the 12tn day of June, 1909, hereto
fore filed with the commission, In order
that you may understand the reasons
a That said tariff of rates so filed
and now withdrawn is misleading, nuga-
tory, and was filed through inadvertenee,
as the company was not and is under no
legal duty to file the same
70 Tfat traff in iron ore IS from It's
nature and from the way the business
is conducted interstate.
49, That there will be no tarifS IN iron
ore from the present time until the open
ing of navigation in the, spring of 1901.
"a No iron ore has been transported
under such tariff, but all ore traffic has
been handled under special ore contracts.
and such tariff is not capable NQr DeinS
applied to the business because from us
nature it must be handled under spec!a!
contracts III considerable OF the specldI
services which cannot be enjoyed or used
by shippers in common. Yours respeclAui-
ly.
by J. i. Grea tsinger, President.
A communication of like import was
filed by the Duluth, MeSaba " Northern
Railway company. The attitude thus tax
enrby thesetwo corporations presents
Question of the most vital interest to the
people of the state. If it Is competent
for a railroad corporation, espeGlally one
to the construction of whose railroad the
public has contributed so much as IN
the case of the Duluth & Iron Range
Railroad company, which has received
grant of lands from the state of more
than 800 GOO acres, to withdraw rates On
so per cent of it's traffic and in effect
suspend its business as common car
Iier, then the people are absolutely
at the mercy of the instrumentalities
created by the law for the purpose of
serving the public 1t IS needless to COM
the development of the state ana the
we'll being of the people. If it is tolerated
or permitted to continue, the industries
in that section of the state will be abso-
and indirectly the people will become as
abjectly dependent upon their whim and
favor as were the serfs of Russia upon
the will of their masters. Much mas been
said in the public. press and in our poiit-
ical discussions about anarchy and an
archistic doctrines. This, in my judg-
that has been attempted in the state of
Minnesota, and should be met according
ly. Ours is q government by law, and
our people should not and cannot with
safety to our Institutions, tolerate anv
power that sets itself above the law.
If the course indicated by these corpora
tons is persisted in. it will become the
DUTY of the attorney general to institute
proceedings for the forfeiture of their
charters and for the executive to take
possession of the railroads to insure their
operation as common carriers, pending
the determination of such proceedings
If such action becomes necessary and is
taken, am sure that the attorney gem
eral and the executive will have the sup
port of every law-abiding citizen in the
state.
NORTHERN PACIFIC PURCHASE OF
ST. PAUL & DULUTH RAILROAD.
Early last year the Northern Pacific
Railroad company purchased the property
of the ST Paul & Duluth Railroad COM
pany, including the railroad and appur-
tenances of the latter. AS the Northern
Pacific had, prior to the time of the pur-
chase, been engaged to some extent in
carrying freight between Minneapolis and
st. Paul and Duluth, the roads were at
least nominaly regarded by the railroad
and warehouse commission as competing
lines and as such, within the statutory
inhibition against consolida ton. The real
objection, however, to the consolidation
both on the part of the commission and
myself, was not so much on account of
the removal of the ST. Paul road as a
competitive factor for there had never
the Northern Pacific and any of the
other roads running between st. Paul and
the head Of the lakes; but the st. Paul
road being the only road doing business
between the headwaterS of the MISSISSIPPI
pi and the head of Lake Superior wholly
within the state Of Minnesota, and being
I ~ 4.