The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-06-19
RAILROADS SAY
FREIGHT RATES
ARE REASONABLE
Officials and Attorneys of Min
nesOta Lines Present Their
Case to the Railroad and
Warehouse Commission in
Coal and Timber Rate Hearing

unless all circumstances are taken
into consideration, comparison of
freight rates between adjoining and
adjacent states is of little value TO
this commission in fixing a reason
able and equitable rate schedule"
So declared NJ. d. Grover, general
counsel for the Great Northern, yester-
day before the state railroad and ware
house commission, when concluding
the case for the railroads, at the gen.
eral coal and lumber rate hearing.
The cOmplainants in the case had en-
tered as evidence several tables of
freight rates, comparing rates in Min
neSOta with the rates for equal dis
tances in Iowa, Wisconsin and other
states. In many cases the tables
showed the Minnesota rates to be
slightly in excess of the tariff in
vogue in the neighbOring states.
At the conclusion Of the hearing the
commission announced it would take
the case under adViSement and if it
wanted further evidence it was to call
the railroad men together at a later
date. A decision will probably be rem
dered within six weeks.
j. H. Hiland, vice president and
traffic manager of the Milwaukee, was
the first to testify. Mr.. Hiland read
prepared statement giving his views
on coal rates The price of coal. he
said, was substantially the same at
all Lake Superior and Michigan points.
The roads adopt the same rate, to
given point, from all lake ports, as a
general rule, although this rate was
always based upon the short haul rate
from the nearest point from which the
bulk of the coal traffic usually came.
The same rate from other ports how
ever, made it possible for the dealer to
secure his coal from more than one
point.
The rates on soft coal from Illinois.
Indiana and Iowa mines was usually the
rate On Pennsylvania soft coal from the
nearest lake point.
Lower Rates Benefit Dealer.
To lower the rates on soft coal from
lake points would eventually end IN
benefit to the. tIdier rather than the
public. for SIIe dealer would get most of
- -fi'~ uI.ierence between the reduced rate
and the present rate, he would not
have to meet the competition of Illinois
coal. the rates on which were now very
low and could not stand a further re-
duction.
Mr. HiIand pointed out several mis-
takes in the states testimony. In sew
eral instances the mileage used by the
state for purposes of comparison was
that of a circuitous route. whereas the
fair comparison would be by the short
haul mileage, on which the rate was
based. as the long haul lines had to meet
The difference in lumber rates, Mr.. Hi
land said. was caused by the competition
of water routes. His road in Wisconsin,
where rates were shown to be lower than
IN Minnesota, had to meet water compe
ution from the head Of the lakes. and
BOlH S1OTSS VI Lake NlcnlSdn.
Low rates We're made on lumber and
In some cases logs. from the head of
the lakes to Wisconsin points where it
was manufactured Without the low
rate on the raw material the traffic would
be diverted, and the road would not get
the manufactured product to haul
The higher rates on lumber to Mime
sofa points, Mr.. Hiland held did not in
jure industries. The difference was more
than offset by the low rates made on
cereals and other farm products which
formed most of the traffic of this state.
retically and practically inconsistent, and
had to be made with reference to long
and short haul distances, the volume Of
the traffic. and industrial conditions and
circumstances, always with a view to
promoting industry and making more
traffic.
J. F. Clark. traffic manager of the
Omaha, was the next to testify. Mr.
Clark said that the cost of railroad con-
structiOn and operating expenses in Min
neSota is greater than the cost in Wis
eonsin and other states. This fact said
Mr. Clark, necessitated higher schedule
in freight rates.
Mr.. Clark was closely questioned by
LLOYD .t Bowers, attorney for the Chicago
1ogg counsel for the Chicago Great West
tern The examination revealed the fact
that during the last few years the oper-
ton and material has greatly increased
while the coal and lumber rates in Min
nesota have not been increased. The
cost of labor alone, Mr.. Clark said has
advanced between rs and 80 per cent.
Rates Are Reasonable
After Mr.. Clark finished testifying, P
Z. Stohr, OF the Great Western, gave evil
denee to show that the rates charged
by his road are not excessive He said
that while IN a few cases the Iowa rates
appear lower, in reality they are not; for
In Iowa, where a car is hauled over two
lines the shipper does not receive the ben
eft Of the long haul over the second
route; but that the rate is computed sep
arately by each line. In Minnesota the
rate is made for the entire distance no
matter how many lines the car must be
carried over to reach its destination. and
as the distance Increases the rate de-
creases, so the shipper is thereby given
the benefit of the long haul schedule
Mr. Stohr also said that it cost lust as
much to transfer a car for ten-mile haul
as 1t does for 4O0-mile haul This, he
sac tH was So one OF the principal reasons
the distance for local traffic than for
through business. Local traffic, he con-
tended, is the most expensive that rail
rate for short hauls must be greater than
Tor long haulS or through business
Mr.. Kellogg followed Mr.. Stohr and
spoke OF the reasonableness of the rates
IN vogue on the Great Western line.
Tor the Great Northern, stating that the
1relght rates in vogue in Minnesota were
ef sdafd by trained and fair-minded
franc men, who desire at all times to
give the shippers the benefit of lower
s sfles re T99n 1t is possible to do SO, and
pahies operating the lines
Counsel Grover Talks.
You gentlemen" he safd addressing
the commission, should think long and
carefully before you disturb the present
rates. There has been no specifc com
plant by shippers or dealers and I think
mat the average merchant and manu-
1acturer is satisfied with the service given
by the Minnesota railroads.
Ihere has been presented hear tables
comparing Minnesota rates with the rate
schedule in force in other states TTnlaSS
dll circumstances are ia kpn into
alton, comparison of freight rates he
tween adjoining and adjacent states is Of
ultle Value to this commission in flying
a reasonable and equitable rate sched9
ue. Ihlnk when you consider the in
creased cost of labor, material constr1Ic-
1iQn ana operating expenses of railroads in
minnesota over the cost in other states
our rates will be found to be quite res,
sonable. even if they do appear q mite
hlgher on the surface investigation"
george X. Peck, of the Milwaukee road
1olloWed Mr.. Grover, but said he had moth >
ing TO add to the statements made bv
MI. tlland and the other traffic oficia IL
VINO testifled before the commission.
Many Officials Present.
The representatives of the railroads at
the nearing yesterday were: Chicago e.
North western, Lloyd w. Bowers gem
eral counsel; Marvin Hughitt Jr. freight
franc manager, and A. c. Johnson, gen
eral agent at Winona; Omaha James IT
Clark. vice president and traffic manager
and H. M. Pierce, general freight agent:
milwaukee,, George r. Peck. general coun1
sell j. II. Hiland: vice president and traf-
nc manager, w. N. d. Winnie auditor and
D. l. Conley, assistant general freight
agent, Minneapolis; Great Northern, M