The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-12
EFFECT ON RATES
A Circular Shows How Competition Has
Been Stopped.


Attorney General Douglas in yester-
day afternoons proceedings developed
the first evidence showing directly that
the merger had resulted in community of
action on the subject of rates. The ex-
animation Of s. p. Robertson, local agent
of the Great Northern at Moorhead,
brought out a circular letter sent out by
the general freight department of the
road. This instructed the agents that
where choice of routes had existed be-
tween the Northern Pacific and Great
Northern, shipments would be made by
the short line, and the longer line would
not carry the commodity at the same
rate. This meant that competition had
entirely ceased and the shipper must
tai his goods over the route directed by
tho merger companies, or pay a higher
trot9llt-ra rate. On all competitive lines, the
rate is n,ada by the short line, and Is met
by the others. The letter introduced in
evidence read as follows:
st. Paul. Mimi. Jan. g. 1902.-Agent
Great Northern Railway Company, Moor
head. Minn.-Dear Sir: The instructions
contained in joint circular Northern Pa
cifc Railway circular) No ia, dated Jan.
%. 1900. are hereby modified with respect
to the interchange Of traffic between local
or junction points in Minnesota or North
Dakota west of the eastern terminals, as
follows.
Freight shipments from one junction
point to another junction point will be
forwarded via the line having the shorter
mileage and lower rates. the longer line
will not undertake to equalize the rates
based on the shorter mileage of the other.
Freight from a junction point destined
to local point on the other company s
line may be accepted if the joint rate
made on the sum of the locals of both
companies is less than the rate Of the
company on whose line the local point is
located, for examples:
Equipments from Fergus Falls to Ma
p,eton may be routed via the Great
Northern to Fargo. thence over the
Northern Pa cifc to Mapleton Shipments
from Fargo to Amelia may be routed via
the Northern Pacific railway to Mapleton.
| thence via the Great Northern railway to
Armenia.
Rates made by the con1bina ton of the
local rates Will not include any transfer
charges at junction points,
ANY former instructions conflicting
with the above are hereby Cancelled.
please acknowledge the receipt Of this
letter and advise if fully understood.
| Yours truly. John A. Sargent.
''Assistant General Freight Agent
l.. J. Stodder. agent Of the Northern
Pacific at Moorhead, testified that he had
! received a similar letter. which had
stopped shipments from Fergus Falls tc
Moorhead over his line. Later the orders
| were Cancelled. and the business Wen:
| back to the Northern Pacific.
A. J. Wright, a furniture dealer OF
/ Moorhead. cOrroborated this testimony
He was told last January that the existing
rates from Fergus Falls would hereafter
apply only over the Great Northern
which was a shorter haul but consumed
| more time in shipment. He had to pay
express charges If he used the Northern
! Pacific. Later the order was rescindet
| and he went back to the Northern Pa
! cif;c. .-
| ~. Frank A. Weld. president Of the
| Moorhead normal school, testified that
! the passenger agents of the two roads
had been less active in going after bust
ness since the merger, and that less salts
! factory rates had been secured by the
| students.