The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-07-10
COMP ANIEsl CLAIM STATE HAS NO
RIGHT TO INTERFERE WITH
RATES
THE BUSINESS IS INTERSTATE
Evidence Is Introduaced to show
That Their Intra-state Business
Amounts to Practically
Nothing,

Il
question of rates andtthat of Jurisdiction
are being tried simultaneously, though
the force of the latter was weakened
somewhat by the Duluth & Iron Range
and the Duluth, Missabe & Northern
Ming schedules, half hour before the
nearing commenced.
The Minnesota & Eastern was repre-
sented by M. D. Grover who filed an
answer to the demands made by the
commission, and summed up in it the
most effective arguments employed by
the other two roads,
The contention of the roads. in brief.
was that the commission mad no turisdic-
ton In the matter of the rates because
they were inherently of the nature of
interstate rates, and as such, constitu-
tlonally beyond the power of the board
TO interfere with. 1t was pointed out in
all the answers fled. that adj docks used
In connection with the transfer of iron
ore were constructed solely for the DUR
pose of being used in connection with
and to facilitate interstate traffic and
could be used only in connection with
such traffic. 1t was also shown that they
have not been and are not being used as
warehouses; and that they were OF spe-
cial construction, provided with chutes
or pockets for the purpose of transfer
ring ore from the docks to the vessels
conveying cargoes to the lower lakes
Witnesses for both the principal roads
interested testified that an overwhelming
proportion of their business was with
lower lake points, and in the case OF
the Duluth, Missabe & Northern it was
contended that the intra-state ore bust
ness of the company did not amount to
more than one-twelfth of 1 per cent of
the total business done since the forma-
ton of the COMPANY
The rates on carload lots per gross
ton, as filed by the two companies yes
terday, are as follows:si
Iron Range, from Virginia and com
mon points, 80 cents; from Tower, 80
cents; from Ely, ST. al
Missabe, from Hibbing and common
points, 80 cents. +sG
F. B. Kellogg appeared for the Duluth
q Iron Range road; ]. B. Cotton, of
Duluth, and G. Wildwood Murray of New
York, for the Duluthy Mssabe S& North
ern. Senator Moses E. CIapp appeared
as the special attorney for the commits
sion trsft
M. H Sanford, of Duluth, and ]. c.
Weadock, of Bay City, Mich, were pres
ent as the representatives of the Penob-
scot Mining company, of Hibbing, and
asked to be heard. Permission was grant
ed.
]. B.. Cotton, general attorney for the
Duluth, Missabe & Northern. company
was the nrSt witness called, and his Elk
animation by Mr.. Murray occupied the
.wnQle Of. the morning session. He stated
that the share of the freight to the COM
pany on ore from the mines to the lower
rates was invariably so cents per gross
ton, this including all expenses from the
actual mining of the ore until it was de-
hvered on the docks at Duluth When
the ore is loaded on the cars, the service
of the railroad company is complete.
Fluctuations in lake rates did not affect
the rates charged by the company, which
were and had been for the last seven
years those adopted by the Western
Classification association. The company
had a local tariff and schedule on intra-
state shipments of iron ore, which has
cbeen in force for long time, but no
shipments have yet been made there
under. The local tariff, he said, was fair
and just to shippers, but that in all
probability sufficient quantity of iron
will never be hauled under them to make
them compensatory.
STATE BUSINESS IS SMALL.
Since the formation of the company,
only few small shipments mad been
made to state points, and in fact, the
total iptra-state business In iron ore
done by the company did not exceed one
twelfth of l per cent of the aggregate
business done
Witness was examined at length by
Mr. Murray as to the method pursued
in getting the ore to the docks and as
to the uses to which the docks might
be put. Regarding the latter he said
that 1t was impossible to adapt the docks
to any other purpose than that for which
they were built. and that every ton or
ore loaded on the boats went out of the
state to different points in Illinois. Mich
lgan, Pennsylvania and New York state
The total annual shipments from the
docks In Duluth were about $500 600 tons
on last years figures, and except when
there was a delay in the steamer service
they were hardly ever full The company
had a contract with the Pittsburg
Steamship company for the transporta-
ton of all their ore, but private steam
ers were afforded every facility to load
from the same docks. The Pittsburg
Steamship company was selected to carry
ore by the owners of the mines.
DOCKS MADE FOR EXPORT TRAFFIC.
After brief continuation of the ex-
ANIMATION of Mr.. Cotton. in the after
noon, w. A. McGonagle, assistant chief
engineer of the duluth & Iron Range
company. was called to the stand by
Mr.. Kellogg.
He said that he had been connected
the docks owned by his company at Two
Harbors had been constructed under his
supervision. They could not be used for
storage purposes because the ore would
freeze so hard in the winter that it
would require several months to thaw It
out. Even for coal storage they would
be useless, as they had not been made
with that end in view.
A. II. Vealey, auditor and general
freight agent for coI5
that the company had made no ship
ments to Minnesota points in the last
twelve months. In fact, since 1889 there
mad not been more than 5000 tons sent
10 any Minnesota points. At least 20
per cent or the company's business was
handled on the lakes by the Pittsburg
steamship company, and all the ore went
TO the lower lakes. As a general rule, the
company shipped about 10000 tons per
DAY In the busy season. although on one
occasion as much as $4,000 tons had been
sent down the lakes in one day For the
year 1900, when the rate cases were first
heard by the railroad commission, the
earnings of the company had amounted
to about M,29S,S 70, and of this all but
SlZ,O0O had been realized from ore shipped
to points outside of Minnesota.
The last witness to gbe examined was
j. II. Chandler, general solicitor for and
director of the Duluth & Iron Range
company. His testimony dealt mainly
with the transportation contract entered
into by his company with the Pittsburg
company. 1t was made some time in May
last, and while at least nine-tenths of
the ore was carriedrby this company. no
restrictions We're placed in the way of
owners using any line or boat they
wished, shipments being made In exactly
the same way in either event.