The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1909-07-29
TALKING EXPRESS RATES
Railroad Commissioners Holding q
Meeting With Representative Of
Wells Fargo Co.

Wells Fargo Co.
Inc members of the state railroad
commission, Messrs. Smith, of Stur-
gls, Robinson, of Groton, Rice, of
flandreau, Secretary Stanley and At
torney Dougherty, arrived in the city
Monday evening on a special train
from Chamberlain, where they held
a session during Monday.
Tuesday the commissioners
held a meeting in the auditors office
of the city hall with A. ]. Ludlow,
the traffic manager of the Wells
Fargo Co., which express company
has taken over the Milwaukee sys-
tenn. C. d. Summey, superintendent
of the Iowa and Nebraska lines Of
the American Express Co., and j. H.
Butler, superintendent of the Adams
Express Co., we're also in attendance
at tho meeting, although they took
but little part in the discussions of
the afternoon.
The state legislature passed a law
requiring the express companies of
the state to reduce their rates 20
per cent on or before July l..
This law the Wells Fargo Co. ig-
nores, as stated by Mr.. Ludlow, on
the basis that it was not doing bust
ness in the state at that time. He add
ed further that the Wells Fargo Co.
did not succeed to the business Of
the United States, that it did not
know of the rates of the U. S. in
this state. and that it figured out its
own rates on it's own basis. Mr.. Lud-
low said that he had very little respect
for the methods of the United States
business policy in making rates, and
that it knew very little about the
business. Asked by the commission
what was the method of making ex-
press rates, Mr.. Ludlow stated that
they took the first class freight rates
and made the express rates from two
anu OlS-udll W IlICS llllSS DIS 5lCdI,
| and he declared that it was the only
equitable and just manner in which
to formulate the rates.
Mr.. Ludlow stated that since the
American had reduced its rates under
the new law the Wells Fargo rates
were proportionately the same on
lines west of the Missouri river
both lines running to a competing
point, however, but he declared that
the intermediate rates were about the
same.
On the east side of the river Mr..
Ludlow admitted that the Wells Far
go rates were higher than the Ameri-
can, except at competing points, where
they were practically the same. Ask
ed as to what rate the Wells Fargo
paid the Milwaukee company for
hauling its express, Mr.. Ludlow stat
ed that it "a SIS per cent. He added
that the United States rates were not
increased, for the reason that they
did not buy the business of that COM
pany, but merely took up the con-
tract.
Commissioner Rice asked the ques-
ton if there was any other express
company was invited to make a COM
petitive bid against the Wells Fargo
for the business on the Milwaukee
road. He stated that he supposed it
was known that the Milwaukee was
going to change, and while it vas
not shouted from the housetops, il
was generally known that the Mil
waukee wanted to change, %presumab-
ly for the reaso that the Wells Far
go paid a higher rate Cor the haul
ing business than the United States.
Commissioner Rice stated that the
investigation was not being conduct
ed under the law Of 1909, but that
it was empowered under the code t.
adjust express rates when they ap-
peared to be too high. Mr.. LUDLOW
stated that he did not think the com
mission could tell the Wells Fargo Co
to reduce it's rates 20 per cent, just
i because somebody thought the rates
were too high. He declared hat tho
law was an unjust one and not equit'
able to a fair business basis. He sale
his company was willing at any time
to take up individual cases and .ad'
Just them to the satisfaction of the
parties interested and making the
rate lower where the circumstances
warranted it.
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