The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-03
HILL ADMITS He
HAS CUT RATES
Says It Was in Philanthropic
Spirit to Build Up Ma
ton S Markets.
BY w. w. Jermane.

BY w. w. Jermane.
Washington, May 3.-James J. Hill
gave some startling testimony today
before the senate committee on inter
state commerce, and, while a good deal
continued federal and state argument
of the question of the better control
of railway properties, and was in that
sense an evidence of Mr.. Hills
"grouchy': frame of mind, yet much
. The ls 1 most Sensational thing MI. Hill
said was that his railroads had I'M
doubtedly been guilty Of discrimina-
tions, and that, If they had not been
thus guilty, every leading man in the
northwest would have been up in
arms against him and complaining to
congress.
Lumber Rates as an Example.
As a concrete illustration, he told
about his lumber schedules from the
Tar northwest to Lake Superior and
how, thru them, he had built up the
lumber industry Of Puget sound.
The original lumber rate from Ore
gon and Washington to Lake Superior
was 80 cents, which was prohibitive.
He called the lumbermen together and
asked them what rate they would like
to have and they suggested IS cents,
but he said that was not low enough to
enable them to compete with lumber
men from the Lake Superior region,
and so of his own motion he made the
rate 40 cents, the lowest in the world.
The traffic began to build up at once.
First, there were only four trains Of
lumber week, but in the end there
were four trains day and the traffic
>became so great that he was compelled
ITO look for markets in the orient for
American goods, SO that he might get
traffic from the twin cities to Puget
sound to counterbalance the eastbound
lumber traffic.
The oriental trade, under his touch,
expended rapidly, and when the federal
authorities began to interfere it was in
most promising condition.
''Abandons Foreign Trade
All this foreign trade, Mr.. Hill said
he has now abandoned. He had ceased
his philanthropic endeavor to secure
foreign markets. He had gone against
the government officials and had dis
covered that it would not pay to main
tain his policy. It takes more power
to promote commerce than it takes tc
suppress it. He was in the promotion
business and the government was ii
the suppressing business, and the gov
longer reach. He said his properties
were now making per cent, and that
being entirely satisfactory, he no longe!
cared whether the United States hat
any foreign trade or not.
Effect on Flour.
AS another concrete illustration, hi
said he undertook to find a market fol
Minneapolis flour in the orient, and es
tablished 45-cent rate from that city
to Hongkong, under the stimulus OF
which Minneapolis flour was finding {
rapidly growing market in China. Their
along came the interstate commerce
commission, and directed that he pub
lish the thru rail and water rate OF
flour To do this meant that his rivals
would cut under him and take away tn.
trade. So he withdrew the rate, ant
the flour market was closed so far al
China was concerned. Last year thes'
flour shipments were 10000 tons; thi
year they are nothing whatever.
The outlook at present, he said, wa
for a large wheat crop. The foreign
markets for wheat and flour would TEN
to keep up the price for the American
wheat grower, but he purposed having
nothing to do with finding markets.
Gulf Traffic.
Mr.. Hill spoke of the traffic s goin!
to the guf in preference to easter
ports, as the eastern roads were con
gested, no new trunk lines having beer
built for years There is congestion
phia and New York. This congestion
did not exist in the south, and the gul
roads could carry much more traffi
than they were now carrying.
+" "Regulate as M much as you please,
I MT in
the time you do reach me, there will b
plenty of corpses strewn over tn
ground
He thought that eventually the raj
ways would have to increase their rate
and pay larger incomes in order to ad
to present facilities. He said the Fri
railway was built at the time of muz
zle-loading, f1int-lock muskets and
was a muzzleloading, fint-lock raj
road. He declared himself agains
pooling and asked why strong road
should carry the weak ones.
Calls Commission Incompetent.
"Let them have room, he said, "a.
cording to their heft.''
He described the present interstat
commerce commission as absolutely il
competent.
s, There was an interesting descriptio
of Mr.. Hills altruism in his story
how he tried to control terminal ell
vator charges at Buffalo in the intere.
of the wheat-growers of the northwes
When be went to Buffalo he discovere
that the terminal charge fixed by tt
trust for elevating wheat was l;
cents a bushel. So he built an ell
vator, where he charged u -cent
bushel. Meanwhile he was in a. CO.
slant fight with the trust in the cit
council and in the legislature, and fl
ally the trust 8 officers came to him wit
an offer to buy his plant for $4,000
more than it cost him. He sold becau
he was tired Of having to fight his we
against the odds the trust brougl
against him in buffalo and at Alban
As soon as the trust got hold of his ell
vator, the price went back to the O
figure. .&
Why not put the elevators under II
control Of the interstate CONNER
law?' senator had asked him.
"Well, it wouldn't hurt Hill +
piled; "the law isn't enforced an
way
All Rum Down