The Minneapolis journal., 1906-03-29
ERIcK OLSON READY TO TESTIFY
IN RATE HEARING.
Has Voluminous Testimony to Show
Why Rates Should Be Reduced, and
Is Keeping Notes on Railroad Wit
Official Says M. 3 st. l..
Earns Only 4.S per Cent on Cost.
CA digest of the proceedings in the
rate hearing yesterday af'
ternoon will be found on page ~

testimony in the merchandise rate near
ing before the railroad commission, at
least one witness will take the stand to
talk in favor of the reduction. Erlck
Martin county, has attended every ses-
sion this week, and has frequently: hand
ed suggestions in to the commissioners.
He has satchel full of documents
which he will produce at the, proper
time, and his appearance is likely to
be a unique incident. Years ago MI.
Olson was one of the best-known popu-
lists in the state, and his hery :oratory
was always heard at the popullst con,
ventions. He has studied the ra1lroad
question for himself and has many orl-
ginal ideas. During the hearing he has
sat curled up on sofa, his eyes half
closed, but the angle Of his bushy beard
Indicating aggresslveness-i repose. lie
has taken many notes on the testlmo-
ny of the railroad officials and fre-
quently has handed in notes. suggesting
questions to be asked. He has taken
no active hand yet, but has .signlhed his
| desire to take the stand when the rall-
| road case is in.
States Cost of Road. =.
J. N. Tittemore, freight traffic mama
| ger of the Minneapolis & st, Louis and
the Iowa Central, was the leading wit
ness at the morning session today. He
testified that the first named road pays
43 per cent. interest on its. cost, which
he stated at 500 ,S19, ,647.74. After pay
ing interest on bonds, the surplus for
stock dividends in the last fiscal year
was only $257 ,49492 GEoss earnings i9 g
65.26 per cent went for operating ex-
penses and taxes, and $1,040,03l.64 or
1873 per cent was spent in conducting
transportation. The proposed schedule
would reduce their Minnesota earnings
20 per cent, or $42,317.1S year.
view of their local business in, Minneso-
| ia, and expressed the belief that their
line from Winthrop to Storm Lake did
not pay. He declared that the neces-
sity of loading merchandise cars light
for setting out at various points, in
order to meet competitive, service, left
very little profit in such business, and
but for that practice their net earnings
could be increased several times.
Commissioner Staples challenged this
statement. Mr.. Tittemore said he only
referred to the net earnings from that
class Of business, but as to that he coulC
prove his statement. The average loac
Of merchandise cars out Of ST.. Pau
and Minneapolis to local points, during
; sample months last year, was but 5,36:
pounds, or only one-tenth the average
trains have an average load Of 357 tons
; while thru trains average 1000 tons.
Mr.. Tittemore said that the value o.
the commodity was the first thing con
sidered in making rates. If the freigh
plays little or no part in fixing it,
price, the rate inclines to be higher
Railroads also. consider what will ben
! eft the producer. -.--
Comparisons with Iowa.
1 Taking density of traffic into consid
3 Grafton, Mr.. Tittemore said that rate
: on their line were lower in Minnesot;
: than in Iowa. Their line in Iowa will
. not sustain a daily freight service eac]
7 way with local business. Their lows
trains can be filed out with coal, bu
9 there is nothing in Minnesota to he'll
l out local tonnage with. He declared
l that it took as long to get a car from
: Minneapolis to Chaska and back il
: service, as to get it from Minneapolis t.
e Peoria.
The cost Of operating and maintain
r ing their Minneapolis terminals las
f year was $164,67693, st. Paul terminals
f $37 ,450.29, and local freight houses il
Q Minneapolis, $103,612.2l, not includin
), stockyards. It takes ten times as muc
a labor. to bill merchandise cars as thr
r business in car lots Their way freight
r take twelve hours to make the same ru
that thru freights cover in eight hours
r The wages are more for the; way freigh
A run, but the thru train gets so per cen
l. more service out Of the same equipmen
h Cars billed with merchandise, taken fo
It the first ten days of July and Noven
r Der, 1905, earned an average Of $14.5
II car out Of St. Paul, and $13.51 out G
n Minneapolis. = y =: :
10 Minnesota Rates. Lower.
e GeorgesC. Conn, general freight age1
3 of the 500, was the first witness toda,
d He presented figures to show that the
% local rates in Minnesota are lower tina
in other: states. AS their rates al
affected by competition. aareduction G
local rates in Minnesota would inea
a reduction all over the system.
5W.,O Craig Of Austin, travelling aud
u tor for the Milwaukee, presented ev
a. dence to show what the proposed redu
IL tion in rates would mean in specit
Ge cases Of shipments. William Ellis (,
lg Chicago, for the Milwaukee,, amplife
1e his testimony Of yesterday on eompar
tive rates in minnesota and 9th
81 states. -.,-.... =
I'd H. E. Pierpont of Chicago, assista,
g. general freight agent of the Milwa
kee,, offered "a statement to show th