The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-06-03
An Interesting Rate Situation.

Or vastly greater import than might
be supposed from mere surface indi-
cations, is the reduction in rates by
the railroads, recently made on ac-
count Of the deadlock in the strike of
masters and pilots on the Great Lakes.
This all-rail reduction has been Of
great benefit locally and Of benefit to
the railroads as well. How it will
work out eventually is worth think
ing about. 1t may prove to be ouly
the first step towards further rate
reductions, and it may end in general
rate disturbance.
Already an enormous quantity of
Minneapolis flour that had piled up at
lake ports awaiting lake transit has
been taken out all-rail. The all-rail
lines. having reduced rates to the
alexandria, basis, have prof1ted by
an increase in tonnage that will show
up to advantage later on in gross
earnings figures. The increase in tom
mage has more than offset the mod
erately lower freight tariffs. Mean
while the Minneapolis millers who
were on the point Of closing down
ability to make delivery of flour, sold
on alexandria, basis, have resumed
grinding.
Formerly it cost a Minneapolis
miller rs cents a hundred to send flour
all-rail to New York for domestic &C
count, or % cents If for export. Anti
| ctpation is common in all business and
in the Ia he 70
contract long before the lakes open,
for delivery of flour by lake, later on.
This the millers did as usual this sea-
son, hence at the usual date for the
opening of navigation, they found
themselves with contracts on hand
under which they were bound to de-
liver flour at the alexandria, rates Of
% cents domestic and 2OA cents ex-
port, and the lake routes blocked up
indefinitely by labor trouble 1t was
a very bad situation. In a few in
stances flour to fill these orders was
shipped all rail, millers pocketing the
loss, until the railroads came to their
relief with open all-rail rates of 23
and 20A cents, in force to July i.
The railroad managers felt a sort of
moral obligation to help out the mills,
but aside from vhis there was the op-
portunity to get a big tonnage and
make up for the losses in this respect
that have been noted Of late on near
ly all railroads.
The question now arises as to the
final outcome. There is a feeling ir
the air that when July 1 comes, the
railroads will not restore rates to the
former basis but will want to hold the
increased business they are getting
Latest reports would indicate a break
ing up Of the strength of the masters
and pilots side Of the fight and thu
possibility of the operation Of a larg,
part Of the lake fleet before a grea
time. When the boats run again tn
owners will not find any such great &C
emulation of freight as would hav
been the case had the railroads no
his business to the all-rail lines i
, not likely to return to the lake an
rail lines on an even basis Either tn
J railroads must restore the forme
} rates or, to get the business the lax
lines must reduce rates.
E On the whole 1t looks as If Min
: neapolis is to benefit by anything tina
) may follow, and from railroad view
l point this is a very serious matter. /
l few years ago the transportation ia
: cilities Of the country were inadequat
3 to move the tonnage offered, but to
t day conditions are not the same
e From the reports Of the day there
Q no reason to look for much 1ncreas
t thru the summer. The railroads ar
n now getting tonnage, that they wan
r that would be lake and rail bushes
0 under normal conditions, but whe
t normal conditions return it will
O surprising if the roads surrender with
S out an effort to retain It
IL towards or traitors In the Japane