The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-27

"a full digest of the proceedings of the
rate hearing yesterday afternoon will be
found on page four.)'' &c. ~@--,
Railroad officials occupied the stand
all today in the railroad commission IS
hearing on merchandise rates. They
presented a mass of testimony to show
what the reduction would mean to their
earnings. and to show that present rates
are reasonably low. The witnesses were
not cross examined. The railroad com
mission is, allowing the railroads to
indicate their defense, before attempt
ing to cross question the railroad wit
nesSes. ~
The Chicago & North Western held
the boards at the morning session, and
| s. A. LYnde of Chicago, general at
+ torney OF the system, presented their
| case. r.
In his opening statement Mr.. Lynde
corrected the statement made yesterday
by President A. B. 'Stickney of the
Great Western, who said that the ILL
nols commission had interrupted hear
ing on the proposed reduction of rates
there by saying that the order was al
ready before the hearing. Mr.. Lynde
| said he was present at the hearing and
that this statement was an injustice to
the Illinois commission.
Mr.. Lynde said that if the Mime
sofa tariff should go into effect, the
road would have three alternatives.
First, where it operated long line
competing with short line mileage, it
would have to go out of business Sec
state rates and base everything on the
Chicago rate, overturning the present
equilibrium; or, third, it would have
to charge higher rates to intermediate
points, which would be discrimina-
ton. He would show that present rates
are reasonable and just.
The first witness for the North
Western was A. G. johnson, general
agent at Winona..
Reductions on North western.
| Mr.. johnson had a stack of exhibits
made. up by North Western employees,
| which were offered as evidence. He
offered comparison Of the proposed
tariff with the present rates. It
would be 20 per cent less than present
terminal rates, and % per cent less
than present distance rates. Mime
sofa s present distance rates are 40 per
cent higher than the Iowa distance
rates, and the terminal rates are 81 per
cent higher. When the long haul is
based on short haul mileage, however,
Minnesota rates are now only 4 per
cent higher:
;. Figures were then produced, based
on actual business hauled. The pro-
posed tariff would reduce the income on
business hauled out of Winona "a per
cent. On. business out of Rochester, it
is "a per cent less on terminal rates,
>. and IS per cent on distance rates; from
Ma nkato, 10 per cent lower ON termi-
| nal. rates, 247 per cent on distance
rates; from New Ulm, 10 per cent less
on terminal rates, and 81 per cent less
on distance rates. T.. - -
from Winona meet those from st. Paul
a little west of Mankato. Winona does
a large jobbing business, amounting tc
100000 pounds in month. The pro
J. posed. tariff would increase the rate
=. from Winona and decrease the rate
l.. from St. Paul, cutting Winona out Of
: all territory from Rochester west.
: Commissioner Staples called atten
q ton to: the fact that the proposed rate
4 it could still be adjusted and prevent
a cutting out localities. s'.-:
J. The average reduction, based on bust
v ness actually hauled by the North
:. Western, was stated by Mr.: johnson a
o 25s per cent ON terminal rates and 49,
e per cent on distance rates.
h Must Cut Chicago Rate. t.
i The Minnesota reduction, said Mr.
Johnson, would force reduction Of q
E per cent in rates from Chicago, of q
Y into Minnesota, of 20 per cent from
i Chicago to northern Iowa points, an
l. 25 per cent from Chicago to points il
n South Dakota. It would PRACTICAL,
IS put an end to distance tariffs and re
}. suit in everything being hauled on ter
l. minaI rates. Such, sweeping reduc
r ton over it's territory would meal
l. handling business at less than cost
70 The present system Of rates seemed t
l. be satisfactory, and only one or tw
complaints have been received Of lat
wears, and those have been satisfaction
lily adjusted. = ~.
A statement was made showing tina
the average revenue for tonnage move
$ in Iowa last year was $1.25 ton, an
in Minnesota, $1.03, leaving out tn
1 logging roads. The average distanc
"a hauled was 703 miles in Iowa and 10
n miles in Minnesota.
y Commissioner Staples called after
i tion to the fact that the Minnesot
= statement includes iron ore. 4
he Fuel Costs More in Minnesota.
y E. G. Schevenell, superintendent q
~ the Minnesota division Of the Milwal
- kee, was called to show that the cos
~ of handling business in Minnesota
~ greater than in Iowa. He said tia
branches in Minnesota are shorter tina
in Iowa, which makes them more e!
~ = t pensive to operate, and the low
~ branches carry six times as much bus
e. ness as those in Minnesota. I'll
-. economical basis for handling trains {
H. more in Minnesota than in Iowa, tt
freight increasing it $1.l0 a ton, of
re per cent, and making the average COZ
Is Of Iowa coal at their Minnesota CO.
ur stations $3.50 ton. The <cold
weather in Minnesota requires mo-
- coal to make steam and to heat. The
ssa figure six months winter in Minnesot
rs and five and one-half in Iowa. I'll
"a fuel cost in, Iowa is 40 per cent of tt
81 expense Of train, and in Minnesot
b it is SO per cent; grades are heavi
"a on their Minnesota lines, making snla]
IA er trainloads necessary. Mr.. Schevene
"a was not able to give definite stat
M ment of the difference in cost betWee
81 handling freight in the two states.
81 Mr.. Lynde referred to the Minneso
b proposed schedule as based on Iowa
b tariff. Commissi Toner Staples correctt
a him, saying that it was not based (
d Iowa rates at all. Mr.. Severance u
q derstood him to say that compariso,
b with Iowa were not wanted, and sa
III that in that. case the hearing could
b much Shortened: Mr.: Staples repli.