The Minneapolis journal., 1906-08-14
|STICKNEY PRICKS
RATE COMPROMISE.
PROPOSED RATE SETTLEMENT
KNOCKED GALLEY WEST.


Grain Tariff 10 per Cent IF Railroad
Commission Drops Merchandise Rate
Proceedings Offer Is Favored Until
Great Western Man Is Heard.
The merchandise-rate hearing before
the state railroad and warehouse com
mission yesterday took turn which
at first promised to- end the nearing
volved, but which actually did end in
the commission turning down the rail-
road proposition thru which the hear
ing would have been ended.
All this was only accomplished after
the three big northern transcontinental
roads, the Northern Pacific, the Great
Northern and the 500, had offered to
make voluntary reduction of 10 per
propositien prop sit and ' the intended eompro-
mise with the railroad commission
balked by President stickney. of the
Great Western. It was crisis which
brought the three members Of the COM
mission into the limelight.
The effect of the proposed compro-
mise depends largely on the partisan
ship of the man who considers it. Ac-
cOfu1ng 10 tue oA1c1d1s " 'Ao ioauo 'ne,'
proposed the compromise settlement,
the grain growers of the northwest
would be in pocket between $1,500,000
and 100000 because of the 10 per
cent reduction in grain rates to Mime
apolis or the head Of the lakes. But
the rates on coal would not be dis
turbed and the whole matter Of the re.
adjustment Of merchandise rates would
be dropped, at least for the time being.
Terms Of Compromise.
The offer Of the three big lines to
compromise was made to the railroad
and warehouse commission In letter
dated Aug. 8. The communication en-
bodied the following points:
Merchandise rates on the three lines
shall be allowed to remain as they are,
and all proceedings looking to their
readjustment shall be dropped, on the
railroad theory that the rates at pres
ent are just and reasonable; that they
compare favorably with rates in effect
in other states; and further, that pres
ent merchandise rates do not more than
pay for transportation and the cost Of
handling the business. .
No Benefit to Farmers.
A reduction in merchandise rates
would be no aPPreciable benefit to the
great mass Of people served by the
three lines, but reduction in grain
rates would be money in the pocket Of
every farmer, inasmuch as the cost Of
transportation is always deducted be-
fore the price of grain is fixed at the
than the country merchants should be
considered '' 49,
In consideration fthe above the
three roads agree toreduce the rates
on grain fro mall points in excess Of
100 miles from the terminals, and so
to maintain them as long as the mer-
candise rates are left as they now are.
It is explained that the reduction on
grain would take such "a slice out Of
in merchandise rates could be afforded.
J. The companies fourth point is that
the readjustment of the merchandise
rates, as the matter has been taken
up, will mean months or years of in
vestigation. The companies have been
holding back reduction in grain rates
pending the settlement Of the merchan.
! disc rate controversies, SO in order to
| give them chance to make the re-
| duction, they ask to have the mer-
chandise case dismissed. u. *
It is estimate dthta the benefit to
Minnesota farmers from the reduction
| Of grain rate swould mean at least
$1,000 900, and that the benefit to farm
ers outside Of Minnesota would foot as
much more. <4.... = In
| !, Look with Favor. +:
This plausible and tempting solution
is said to have struck the commission
so favorably that it had all but decided
to accept it. Then President Stickney
got busy, appearing ostensibly for his
own road, but in general way he was
the mouthpiece Of all the Minneapolis
lines outside Of the three figuring in
the compromise.
Mr.. Stickney did to that compromise
was a plenty. The compromise was
practically certainty at noon, but late
in the afternoon, after Mr.. Stickney
had finished with it, it was torn to tat
ters and no more looked like the solu
tion Of mighty problem in railroad
economics than it resembled a last
years almanac. Mr.. Stickney did no,
approach the matter as lawyer anal
yzing his opponents argument, but at
a man who knew much about railroad
rates. He asked permission to question
W. H. Gemmell, secretary to the presi
dent Of the Northern Pacific, and the
request was granted. .>..
Stickney Quizzes Ge1nmell.
"When did you check up to arrange
for this list Of reductions which foot
up to show that the reductions proposed
amount to 100000 year7' asked MI
Stickney.
cit was checked up by the auditor O.
freight receipts,' replied Mr.. Gemmell
President Stickney then drew from
Mr.. Gemmell that about 1O0,O0O,O0(
bushels of wheat were shipped to Du
luth aud the twin cities each year.
Mr.. Stickney then asked few NOR,
| questions of Mr. Gemnell and allowed
him to retire. He then called upon W
W. Broughton, freight traffic mana
ger Of the Great Northern, and afte
asking him a few questions, he discov
cred that, instead of reduction O.
100000 year being made by the pro
posed compromise, something in tn
figures
By questioning Mr.. Broughton fur
ther, Mr.. Stickney found that the gros
earnings Of the Great Northern las
year amounted to $39,570,7S6; expenses
$l9 ,154 ,402; net expenses, $50. 423, 1874
leaving total income Of $22,582,2 ,27]