The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-12-12
COMMODITY RATE
HEARING CLOSED.
RAILROAD COMMISSION DECISION
DUE IN FEW DAYS.
Auditor Gray Of Northern Pacific Sup
plies Tabulated Figurese for Record
and Roads Attorney Makes Argu-
ment to Support Company's Position
Regarding Contract with Milwaukee
Company.

After many weeks occupied in tax
ing testimony, the state railroad and
warehouse commission today declared
rates closed.
The ruling of the commission as to
how much of reduction will be or
d!ered and on what the cuts will apply,
is expected within few days.
The evidence in the hands of the
commission covers in all several thous-
and pages of typewriter matter.
Supplies Figures.
Today II. A: Gray, auditor of the
Northern Pacific, at his own request.
was allowed to enter on the record
elaborate tabulations relative to the ex-
p1lse of operating the twin CITY Du-
slu1h line, with special reference to it's
application to the contract the North
ern Pacific has to haul the Milwaukee
road coal and other freight between
the head of the lakes and the twin
cities. Mr.. Gray explained that the
Northern Pacific received for this bust
ness an average OF 3 cents hundred
weight. The Milwaukee supplies a large
part Of the cars, always keeping num-
Der at the head of the lakes ready for
business, and for these cars at Duluth
the Northern Pacific is not compelled
to pay the usual 20 cents a day per
diem charge which one road is ex-
pected to pay for the cars Of another in
use on it's tracks.
Mr.. Gray's statistical evidence
showed $hatt to during the year, ending
June &c., 1906, the Northern Pacific
had received from, and delivered to,
the Milwaukee road on head-of-the-
lakes business, 128,831 tons northbound,
and 342660 tons southbound. This was
l249 per cent Of the Duluth line IS
business.
Cost of Business.
BY detailed calculations it was shown
that $500 is the lowest average rate
a ton at which the Northern Pacific can
take additional business between Du-
luth and st. Paul without loss. The
average rate the Northern Pacific re-
celyes for hauling four important com
modlties for the Milwaukee road be-
lows: Hard coal, $50; soft coal,
1913; grain, 1856; lumber, $.5OS. :.
:. Emerson Hadley, attorney for the
Northern Pacific, briefly summarized
the case for his road, On the subject
of the Milwaukee roads contract he
said:-, 80. ....,...... -
eve claim we have proved the
ceives under this contract more revenue
than it costs to transport this special
class of freight, and therefore makes
some money on it. At the time the
contract between the Northern Pacific
and the Milwaukee was made, it was
a case where the Northern Pacific had.
to carry the Milwaukee freight from
the head of the lakes or the Milwaukee
would build another line. On this
business the Milwaukee road furnished
"a per cent Of the cars. The additional
business taken over for the Milwaukee
road does not materially increase the
already existing cost of maintaining
the track, stations or expense At ter
minals, as the Milwaukee takes care of
it's own terminal business at Duluth,
and at St. Paul the cars are simply
turned over to the Milwaukee road.
,.... Forced to Contract.
:, ,'ETherefore the Northern Pacific can
handle this business at less than the
average rate, and make a little money.
It was case for the Northern Pacific
to make the best contract it could. The
contract Increased the business Of the
Duluth line one-eighth, and increased
the cost to not exceed 81 cents a ton
to carry the freight. .:.. IS
HBecause of the low rate the Mil
waukee has on the Northern Pacific line
to Duluth, it is enabled to make a low
rate in large territory, to Duluth,
whereas if the milwaukee, rate over the
Duluth line of the Northern Pacific
were higher, much Of this business
would go. the other way to the lakes,
by way of Milwaukee. - .+