The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-20

comparison in rates with the 500 into
northern Michigan or the Minneapolis &
st. Louis into lcWa.
AS between the volume OF traffic out of
the twin cities into the Red River valley,
and the volume carried over the 500 into
northern Michigan, there is no question
that the heavier merchandise shipments
go to the former. St. Vincent, 1872 miles
north, and. Sault Ste Marie, sos miles east,
the first on the Great Northern and the
second on the 500, stand as boundary out
posts for the distribution Of twin city
merchandise across the International Dor
der. 1t would seem as though the Great
Northern should be able to carry Mime
apolis merchandise north through the Red
River valley as cheaply as the 500 can
carry it east into the Michigan peninsula,
and that the 3S2-mile haul to the Cana
dian boundary north should not call for a
higher rate than the 5O5-mile haul through
the sparsely settled tracts of northern
Wisconsin and the upper peninsula to On
tario at the Soo But here are the rates:
oils to- Miles. Per 100 Lbs.-Cents.-S
2
RE by 500 sos 80 50 81 2s %
st. Vincent by
On merchandise classes one and two the
Great Northern rates, without competi-
ton, are so per cent higher, and on the
other three classes, over 100 per cent
higher, than the 500 rates for 1913 miles
longer haul.
Why are 500 rates easterly so much
lower? The answer is, competition. In
order to do bushes at all over this line
the 500 must meet the rates made by the
lake and rail route via Duluth and the
all-rail route via Chicago. When the 500
goes westerly into the so-called non
competitive territory of North Dakota it
charges more or less what the Great
Northern and Northern Pacific charge for
similar length of haul; but when it
strikes east it is compelled to meet the
rates set by competition, just as the
Great Northern does when it runs against
Chicago competition at Sioux Falls and
Sioux City. 49,.
minneapolis Trade In Iowa.
Why is it that the st. Louis road
charges only SO cents per hundred for
carrying 1rst-class merchandise from
Minneapolis 232 miles to Fort Dodge or
268 miles to Ogden, when the Great North
ern demands soc for carrying the same
goods the same distance north? Plainly
1t is not volume of traffic. 1t is COM
petition. 1t is only by a low rate like
this that twin city jobbers and manufac'
turers are able to build up an Iowa trade
aginst Chicago competition. The Chicago
roads see to it, as rule, that their rates
are such as to give Chicago jobbers and
manufacturers control of tributary terri
tory. Northern Iowa is debatable
ground between Chicago and twin city
jobbers and Chicago and twin city roads.
The competition in this case is doubled;
there is the competition first, between the
parallel roads out of either Chicago or
the twin cities, and second the competi-
ton between the commercial and trans
portation interests Of the two CONNER
cial centers. What is tho result?
Compare st. Louis rates to Ogden, CEN
trail Iowa, 26S miles, with Great Northern
rates to Moorhead, in the Red River val
ley, 232 miles. There is no question
about the volume Of traffic being strongly
in favor Of President Hills line. But the
rates are so per cent higher. Suppose
there were no competition? Does anyone
dream there would be any such difference?
Not only does the Moorhead line get
heavier merchandise volume out but it
gets ten to one hundred times the vol
| ume of grain to haul back; and yet both
the grain rates and the merchandise rates
are higher over the Moorhead route, than
over the Ogden line.
| If volume of traffic alone governs rates,
| arAt competition has no part, can Presi-
dent Hill tell why it is that Ogden, in
| the Des Moines valley PCS miles south of
| us, secures in its commercial relations,
with Minneapolis, half cent lower rate
on wheat and flour, 2k cents lower on
| coarse grains and millstuffs, to 10 GENTS
per hundred lower rates on craload bust
ness, and IL to 30 cents per hundred lower
rates on merchandise?
Not twenty-five years ago." as stated
by Mr.. Hill, but to-day, in 1902, competi-
ton has it's important function in bring
| ing reduction Of rates. No better exam
pie Of the value of competition to ship
pers can be found than by comparison OF
| Great Northern rates without competition
| and Great Northern rates with competi-
| ton. Great Northern rates into the
southwest set alongside Of Great North
ern rates into the northwest prove that
| competition secures large boons even at
| the hands of President Hill.