The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-06-20
DULUTH OPPOSES
RATE REDUCTION
ZENITH CITY JoBBERs PROTEST
TO STATE COMMISSION.
Lower Rates Would Apply from Twin
Cities, and Cut Duluth Out Of Con
siderable Territory, Unless Duluth
Bates Weer Also Reduced Winona
Adds to Former Evidence.

Duluth added it's weight in the scale
against the proposed reduction Of state
merchandise rates today. In fact,
about nine-tenths Of the evidence given
the commission has been protest from
various business interests that fear
disturbance Of the existing conditions.
Duluth wholesalers object on the the
Dry that the commissions maximum
schedule would be used by the railroads
as minimum. 1t would reduce rates
from the twin cities to many points in
central and southern Minnesota, and no
corresponding reduction would be made
in the rate from Duluth. The same
complaint has been made by Winona,
and some supplemental evidence was
produced BY Winona today.
Hastings appeared to favor fI reductions ms.
James Manahan Of ST. Paul presented
the case as attorney for the Hastings
interests. Three Mankato business men
were present today, F. M. Currier,
James Spencer and Eugene Patterson.
They will bring a Mankato delegation
UP later, at some date agreed on with
the commission.
Roger s. Powell handled the Duluth
case today as attorney for the Com
mercial club and iobbing interests. The
G. F. Rowe Of the Marshall Wells Hard
ware company, W. G. Buchanan Of the
Stone Ordean- Wells company, whole
salers, and F. o. Dawson Of the Kelley
HOwe-Thompson company, wholesale
hardware. Other Duluth witnesses were
B. w. Howe Of the last-named concern,
A. H. Comstock Of the Marshall-Wells
company and R. G. Bruen Of r. A
Patrick & Co.. wholesale dry goods.
Would Wipe Out Profits.
Mr.. Rowe said the proposed schedule
would work great detriment to their
business and in some cases shut them
out. It would increase the differential
in favor of the twin cites in territory
south Of the twin cities, from l to 6
cents a hundred. AS their profit on
nails is only about cents hundred,
it would be practically wiped out.
Mr.. Buchanan gave some figures on
pie shipment to sebeka, where the rates
| are nouw the same from Duluth as from
the twin cities, he showed that under
the proposed schedule the rate would
be $3.48 from Duluth and 1927 from
the twin cities. The difference would
amount to 27a per cent of, the cost Of
the goods and 20 per cent of their
profit. On the same shipment to Brow.
erville, there is now differentia]
against Duluth of IL cents, and it would
be Increased to "a cents In answer
to Commissioner Staples, Mr.. Buchanan
admitted that his figures were based or
the assumption thta the railroads would
not deviate from the commission s max
imum tariff. " az. {
| Mr.. Howe said that, with Duluth al
most out Of Minnesota territory, Chi
cago would profit rather than the twi1
cities. Speaking of distance tariffs
he said that because of Duluth IS posi-
ton on the, lakes, if rates all over the
| country were made on mileage basis
all jobbing houses in Minnesota would
be at Duluth. be. .s.. .-,<s
Winona Gives Facts. .1.
L. L. Brown of Wincna made anothe,
talk on the damage the new schetlul,
would do that city, and F.. Meginis.
of that city, prominent jobber, added
to his former testimony. He estimated
Winona shipments in the ten classes at
fected at 1000 tons a month, of which
IS per cent is iobbers' shipments. II,
corrected statements that Winona en-
joys an advantage over the twin cite
on rates from Chicago and the east
l This advantage, he said, was only ;
first-class business, less than car lots
obbers' goods come in car lots, on which
AWinona s rate is the same as the twil
cities. lie. estimated that the propose,
reduction would cut Winona iobbers on
of three-fourths Of the territory the,
now cover. -