The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-05-21
RAILROADS.
PLANS OF ]. ]. HILL
Wall Street Journal Predicts Add.
tional Rate Reductions in
Near Future.
The Canadian Northern Road to
Have Shipping Facilities
From Montreal.

In an editorial on the Northern Securi-
ties and the policy underlying amend
nents of tariffs the Wall Street Journal
makes some interesting comment upon
the Hill methods. It says:
The amendments to the freight tariffs
of Great Northern and Northern Pacific
are not, In themselves, important. The
articles affected are such as constitute at
present the smallest proportion Of the
freight of the two roads.
1t is the policy that underlies the re-
ductions that Is Of Importance The
northern roads have always found their
ast-bound tonnage heavier than their
west-bound. The empty mileage west
bound offends Mr.. Hill, the fundamental
principle of whose railroad policy is that
all cars must be full all S the
time when they are in 3 transit.
He has now advocated the re-
6uction Of rates on products OF the
southwest, with the ultimate intention Of
making it worth while for shippers south
west Of st. Louis to route their traffic
northwest to the ports of the north Pa
ciic coast rather than the ports Of the
southern Pacific slope.
THE reduction of all freight rates be-
tween Chicago and the ports of the north
Pacific slope is the ultimate purpose of
J. j. Hill. His theory is that when the
stocks of the companies engaged in that
traffic are able to pay as high as per
cent they are paying as much as they
should, and that further profits belong Of
right to the shippers and producers. He
considers that efficiency of operation has
not yet reached its limit, and that there's
fore great room remains for the reduction
OF rate tariffs. In conversation about
Northern Securities this is the point that
he emphasizes more than others. namely
that the operation Of the corporation per-
n1its economies that cannot be put in
force without 1t.
within two years Mr. Hill will have
placed on the north Pacific route an addi-
tional tonnage equal to that now employed
in the trans Pacific trade from the ports
served by his lines. This fact. taken in
connection with the other obvious fact
that the steamer lines on the Pacific, with
the possible exception of Canadian Pacific
steamers out Of Vancouver, are falling off
in their current earnings as compared
with previous years, is worthy of much at
tention. Mr.. Hill says that he is doing 1t
because he has faith in the opening UP of
the orient. both as a producer of ton
mage for shipment this way and as a field
for American commerce west-bound The
one without the other would not pay in
terest on Mr.. HILLS investment in Pacific
ships.
This reduction in the rates on south
west product is merely a step in the policy
that is to provide freight for these new
ships out Of American ports on Puget
Sound. Mr.. Hill intends to make it worth
the while Of shippers in all parts Of the
union except California to ship their goods
to the orient thru the northern ports, and
over the lines of Northern Securities.
This present step is but beginning. Mr..
Fill expects to secure 80 per cent Of the
cotton goods exports to the orient within
the next few years. He expects also to
secure the tonnage Of raw cotton, which
Is not of nearly so much Importance as
that of manufactured goods. He is. going
to bid for every kind OF tonnage that
will fill car. fit in the hold of the biggest
ship af1oat, and pay rates that will show
even the smallest fraction of a, cent profit
to the transportation companies that Sc
cure it. ~
"The northwest may consequently look
for other reductions in rates in the near
future. The future annual reports of
Great Northern and Northern Pacific are
likely to show decreases in ton mile reve-
nue. balanced by increases in volume of
tonnage transported