The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-10
RATE PROBLEM As
SECTIONAL ISSUE
East and Far West Lining Up
Against the Middle West in
t the Discussion.
BY w. w. Jermane.

ny w. w. JeFfndnes .-.rs
Washington, May 1O.-Discussion of
the railway rate problem has been
sharply revived in Washington. The
sessions of the senate committee now
Investigating the subject, and the opin.-
ions of Attorney General Moody and
Mr.. Morton have all contributed to
making it the absorbing topic.
AS with the tariff, the east, generally
speaking, has been getting the greatest
benefit from the present railway rate SIT
uation. At the same time some west
ern industries have been looked after,
such as the milling and grain, the pack
ing and the lumber Industries, so that
the present rate situation has powerful
friends all over the country, just as the
protective tariff has.
The question Of government regula-
tion of railway rates is becoming sec
tional, possibly TO a greater extent than
the tariff issue. Representatives. OF IN
terror states alone are tenacious in their
demands for change. If it becomes
question Of radical action, the east and
the Pacific coast will stand against it.
Lead to Ton-Mile System.
Congressmen who argue against Civ
ing the interstate commerce commissions
rate,maki1g power point o. out that IT
system. In no other way, they argue,
could the conflicting demands of locali-
ties be met.
Railway rate experts who are willing
to speak frankly of the situation say
thep resent rates have been built up on
two cardinal principles: Keep in mo-
mage at the greatest amount the traffic
will bear, and keep moving. These
principles are modified by conditions of
competition, by the strength of the
shipper, by his skill in bargaining, and
eipes are s the pole Star and i' compass Mo Of
railway ratemaking. Applied. they
mean the best possible commercial use
of railway properties from the stand
point Of the owners.
Dakota Wheat and Rates.
If railway man finds large ton
mage Of a commodity which will move
if the rate is made sufficiently low, he
will make the rate lower to move it..
Wheat would not move from the Da-
kota fields to the eastern seaboard IT 1T
were obliged to pay 81 a hundred in
freight east of Chicago, as it once paid.
raise its own wheat, the Dakotas remain
undeveloped or develop other indus
tries. But the railroads cut the rate
east Of Chicago, at times as low as At
cents buskel of sixty pounds, and
the wheat sought the eastern and ex-
port markets. From the railway view
point that was necessary to prevent
that wheat from disappearing from rail
way tonnage-not moving at all OF
moving by water. Other commodities
which would move at higher rates fur.
nished the profits on wheat also. Sc
with lumber; so with iron ore; so with
coal.
Value the Chief Factor.
IL. -
merce commission dealing with freight
classification, the value of the article is
given more consideration in fixing
freight charges than its bulk, weight
or the cost of it's transportation. II
is stated broadly that the railways seel
to take in freight charges a reasonably
percentage of the value Of the articl
carried, regardless of the cost of haul
ing. ~,
For instance, the railways charg
$685. hundred weight ON bicycle
shipped from the seaboard to Salt LAX
City. Commodities no less bulky TO
their weight, Fay y, but n $ai92; The in
The traffic will bear the charge. S
with electric lamps, cameras, cash reg
listers and slot machines. Even iro
chains. bear be the comparatively hig
rate of 1888.
Gs4 N &c oS4 t,ats sent n cd from the ss
rs cents a hundred. So are som
fruits. Leather in rolls pays 50
hundredweight iE carloads. Hops pa
the same. Hops and leather will stan
the charge. The other commoditit
will not. Hops and leather pay sui
sides to canned goods and fruit.
Pull Gets Concessions.
Points with pull and points wit
larger tonnage get rate concession
from railroads. While commodit
rates usually obtain, less rates carl
the same principle and will serve
illustrate. New York sends first-cla
freight to the Pacifc-San Francisc
Seattle, Portland etc.,-for So a hu
bred, ffth-class for $1.65 and class
for 95 cents. Pittsburg, Cincinna
Chicago, Missouri river points, Miss
sippi river points, and even Denver, p;
exactly the same rates. In other wore
the rate from Denver to San Francis
-1,46O miles-is the same as the "a
from New York to San Francisco-3.2
miles. The railways haul the fre1g
1910 miles further without increasi
the charge. But when the goods st