The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-02-28
STEVENS PREDICTS
RATE CONFUSION
Continued from First Page.

in mind, let it be supposed that thu
Esch-T Townsend bill is the law of the
land, and that The legislatures Of the
middle western states, such as Mime.
sofa, Wisconsin, Iowa, Kansas and Ne
braska, enact legislation that is now
pending, to increase the. rate-making
power of railroad commissions within
those states. Let it be supposed, fur
Their, that the interstate commerce COM
for help, which are now coming from
the southwest, were to hold protracted
hearings and fix system of rates for
all traffic to the gulf ports. Much
time would elapse before other sections
of the country could have rates. SINH
larry established, and during this inter.
val much harm might be accomplished.
Effect on Grain Rates.
For example: The most troublesome
rate in the middle west and the terri
tory between Chicago and the Atlantic
coast, both by rail and water, is the
Guilty, in adjusting this rate 50 as to
satisfy shippers from Missouri river
points to the gulf and shippers from the
same point to the Atlantic coast by way
of Chicago, or by way of Minneapolis
and Duluth Now, the primary factor
in determining this rate is the cost
OF loading and shipping grain in barges
from the upper Mississippi to New Or
leans, and placing it upon it's arrival
in the latter city either in elevators or
ocean vessels. This comes about be-
cause the great highway Of the Mis-
slssippl is always open, and men who
can buy grain can always own or hire
barges. The railroads to the gulf must
meet this barge competition, and they
40 it by considering the haul in both
directions. The return haul is now very
large, owing to the active movement Of
lumber, cotton and other southern prod
ucts.
The railroads east Of the Missouri
river, as Mr.. Stevens points out, must
meet this gulf competition, for unless
they do so, all the middle west grain
moves in a steady stream to the gulf.
They must also consider the return haul,
and the relative export rates to Liver
pool from gulf ports and from the
north Atlantic seaboard.
Demands Of Big Mills.
A third factor in this situation is the
demand Of the Minneapolis flour mills
that grain be diverted toward the
northwest. There are times when the
local demands Of Minneapolis and Du-
luth are alone sufficient to take grain
in that direction, when the rates in
other directions are not sufficiently
low.
The situation above outlined is based
on the natural pressure of business or
on competition.
"suppose,' says Mr.. Stevens, con
complaint, the rates from the Missouri
river to New Orleans are fixed by the
interstate commerce commission, under,
say, the Eseh- Townsend bill, and that
the railroad commissions of Nebraska
and Kansas have fixed rates, the for
mer from all state points to Omaha and
the latter from all state points to Kan
sas City, Kan. These rates, fixed by
process Of law, could only be changed
by a subsequent investigation and or
der made in process of law, and the
territory where they are operative is
removed from the domain Of competi-
ton: Meanwhile, suppose that the in
terstate commerce commission has not
had time, as it would not have had,
to fix rates from the Missouri river to
the Atlantic coast, either by way Of
Chicago or Minneapolis and Duluth.
rates to the Atlantic being controlled
by competition, the transportation lines
in that direction monopolize the grain
trade, and the lines to the gulf, having
the inelastic rate fixed by law, and no
competition, are unable to attract the
grain business, and both they and the
country which they traverse suffer.
Adjustment Would Be Slow.
"Of course, after while the inter-
state commerce commission will get
around to the fixing of rates from the
Missouri to the Atlantic, but what is
to become Of the gulf traffic from that
section in the meantime9
'Obviously, the rates under the Esch-
Townsend, or under any other bill,
could not be extended over the entire
country for years, and the result mean
while would certainly be to enrich rail-
ways and shippers in one section and
to impOverish those in other sections.
This is one Of the questions that
has come up in the minds of members
OF congress- who want to give the peo-
'ple what they demand, so far as that
may be done fairly to all interests. The
period of transition from the present
competitive system to the system of
fixed federal rates would be a period
OF distress for some parts Of the coun-
others, no matter Wat form the 1eg fGE
lation might take. The concrete illus
tration Of the Missouri river and the
gulf and Atlantic ports is typical of
every other portion of the country. I
have merely selected it because the
heavy grain shipments from the Mis-
souri, river make the illustration famil-
lar south, east and west.
Chicago, Minneapolis and New York
have been complaining Of late years
of the rapid development of gulf ports
as points of shipment Of grain for ex-
port. If the Esch- Townsend bill were
to become effective tomorrow and I'M
der its provisions the Interstate com
merce commission, responding to the
most clamorous demand, were to fix
rates to the gulf, the cities just named
would have no further cause for com
plant, perhaps for years.
Need Of Private Oar Control.
It is the opinion Of Mr.. Stevens that
congress next winter will take up the
rate question and pass some bill such
as the Townsend bill Of this SEES
sion. He also believes that the private
car systems Of the country must be
brought under federal control, and that
passed. The questions underlying these
bills are very difficult, and there is
need for due caution before final &C
ton is had. It is clearly the opinion
Of Mr.. Stevens, as we'll as Of many
other members Of the house, that the
legislation which is sure to come at
the next session will be more lust in
every way than any that might be