The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-29
500 FURNISHES A
COST STATEMENT
WITNESS TELLS COMMISSION HOW
MUCH SYSTEM COSTS.
Hearing on Merchandise Rates Yester-
day Afternoon Brought Testimony
Also from Great Northern, Milwaukee
and Omaha-All Claim Minnesota

Rates Are Lower Than Other States.
President A. B. Stickney of the Great
I Western was recalled as a witness in
the merchandise rate hearing before the
+! railroad commission, at the state CAPT
tol yesterday afternoon. He merely sub
mitted some further tables giving the
detailed cost of conducting freight bus
mess on their system.
The other witnesses on the stand for
the railroads yesterday afternoon were
! Richard Kirkwood, assistant auditor of
agent Of the Omaha, E.. D. Sewall, as
| sistant general superintendent of the
Milwaukee, w. w. Broughton, general
p; freight agent Of the Great Northern,
| and William Ellis, statistician for the
Milwaukee. E.- -.-,.: &aH
Mr.. Kirkwood testified that the cost
. of the 500 system up to the close of
+, 1905 was $79,713,923.93, and that ter
minals in Minnesota cost $765, 485.09.
! ; The cost of operating trains during the
! last fiscal year was 1921 per cent of
the gross earnings: The road gets 166
! per cent more service out of equipment
fused in thru freight business, than from
/ equipment used in handling way
freight. -. 49,. -.
Compared with Nebraska. r.
Mr.. Pearce of the Omaha made COM
parison of rates in Minnesota and Ne
+; braska, to show that with similar traf-
i tic conditions rates into Omaha and
/ Sioux City from Nebraska points are
much higher than rates from Mime
sofa points into the twin cities, for
equal distances.
E. D. Sewell of the Milwaukee testi.
fed that, the cost of handling wav
freight. is seven or eight times the cost
OF equal amounts of thru freight ton
na e w pro,,a,+o. - =, o4 49,,
ern said that where the Great Northern
compete with short line, the proposed
rates would drive them out of competi.
ton for such business. He also urged
! that in the sparsely settled country of
northern Minnesota rates must be high.
or than in the southern portion of The
state, where there is greater density of
/ traffic. Altho wheat rates are not an
! issue In the hearing, he presented tables
to show that they are lower in Mime
sofa than in Nebraska, Kansas, Iowa
ana Illinois, and that the farmer Gets
actual benefit from this low rate. while
ne would not from reduced merchan
disc rate. .' r.. ~
Says Minnesota Is Lower. ...
Wl y /; Ellis of the Milwaukee, pre-
sented tables to show Minnesota rates
actually lower than those of Iowa fol
business handled. While the average
estimated rate per ton per mile, figured
from existing tariffs, is l.36 cents pei
ton per mile in Iowa" and Wisconsin
and LAG cents in Minnesota, the actua
rate on business hauled is 1.21 cent.
per ton per mile in Iowa, l.O4 cents il
Wisconsin, and LOG cents in Minneso
ia. He insisted that the reduction
while it would mean nearly million
dollars a year to the railroads, woul(
give no benefit to the general public
The business on which it is proposed t,
reduce rates only amounts to 14.Ol pe
cent of the ton mileage.
Glass rates amount to only about
per cent of the value Of the commodi
ties, and a reduction Of 20 per cent il
these rates would benefit the shippe
only ore-tenth Of 1 per cent Of tn
value of commodities, while it wouI,
mean 3 per cent reduction in the ne
earnings of the companies. :