The Republican journal. [volume] (Belfast, Me.) 1829-current, 1910-07-21
The Milk FREIGHT Rate

| N A~aSAll NdlC.
A Matter of Interest to Maine Farmers.
Big Dealers Ask to Have The New
Freight Rates Suspended.
Especial to the Boston Transcript
WASHINGTON, July ID. Boston milk
contractors were out in force. bv comnA
sci, before the Interstate Commerce
Commission this morning to protest
against the new rates for the transnor.
tatlon Of milk from northern New Emo
land to Boston filed by the Boston E.
Name, Maine Central, and St. Johnsburv
q Lake Champlain railroad companies
d. +. Hood: q Sons, were represented bv
M. K. Bartlett and Charles B. Dravton.
S. D. Whiting, the Elm Farm Companv
and c. Brigham by Hon. John F. Cusick
and Graustein & Company and the Bos-
ton Dairy Company by A. Graustein.
All the commissioners except Messrs.
Clark and Lane were present at the in
formal hearing given in the office of
Chairman Knapp. The specific request
of the petitioners is that the new rates
be suspended and formal hearing given
upon the question at issue.
AS the milk business of Boston is has
ed upon carload rates, the interest of all
the concerns named is identical and the
arguments made by them are practically
the same. The Hoods have enjoyed a
carload rate of one hundred dollars car
mile year, since 1856. This same
rate has been given by the Boston &
Maine to other concerns as they have
come along. The Hoods set forth that
when they began business the farms
along the line of the railroads named
| e., /
rate granted by the Boston & Maine the
company developed the business of sup
plying the cars at cost to itself, exclu-
sive of transportation, of about fifteen
thousand dollars for each carload devel-
oped. In respect to their own business
alone, the lines of the Boston & Maine
have grown from three in 1890 to twenty
one car lines at the present time. The
railroads have done nothing but to fur
nlsh and haul the cars while the milk
companies have constructed expensive
terminals and built icing plants, cream
cries. platforms, milk and can houses at
cost of many hundred thousand dollars.
| The petitioners set forth that in making
these expenses they relied upon the con
tinuance of the old carload rate. The
/ Boston & Maine system has been extend
ed to all roads running into Boston and
is known as the New England system.
According to the contractors, it has re-
suited in giving the farmer higher
price for his milk than elsewhere in this
country, except at few points in Cali
fornia and in the South. and the milk SO
furnished has been sold to the consumer
at a lower price than in other large
cities. 1t is declared also that the svs-
TEN has been correspondingly profitable
to the railroad companies.
In its new rates filed June %, 1910, the
Boston & Maine makes no provision for a
daily or yearly carload rate and the new
rates average about fifty per cent higher
| than the old. The Hood Company sets
forth that for the year ending Feb. l,
1910, the average profit on milk sold at
retail to retail customers has been two
and one-half mills per quart; that the
total percentage of its profit to the ag-
gregate amount of milk sold was little
| less than one and one tenth per cent; and
that it is utterly impossible to do bust
ness at lower margin of profit. In ar
irving at these figures the company has
computed the cost of transportation at an
average of about four cents on each
eight and one-half quart can purchased
| by it. An increase in transportation
!
to decrease its price to farmers or in
crease it to the consumers. Calculating
upon a continuance of the old rate, the
company on the first day of June ad-
vanced the price to farmers almost one
cent quart. The Hood Company char
acterizes as proper the request of the
| New England farmers for this increase
1t states also that it would be hardship
to the public to further increase the price
of milk, particularly at this time. 1t
says, on the other hand, that if the pro-
posed new rates are put in force and the
prices to consumers not increased, the
business of the company will be ruined.
The Hood petition contains the further
point that when the Legislature of New
Hampshire granted authority to the Bos-
ton & Maine to lease other lines. it did so
only upon the express condition that the
railroads should not increase the rates for
fares and freights on lines so leased over
those in existence on Aug. l, 1888, and
July "a, 1889. 1t is alleged also that the
increase Of rates is violation of an in
junction obtained by the State of New
Hampshire against the Boston & Maine
Railroad and constitutes an evasion of
the fact under which other lines in New
Hampshire We're leased by the Boston Z
Maine.
At the close Of the hearing, which was
private, comment was refused by allp par
ties. 1t was stated by Chairman Knapp
/ that late this afternoon or tomorrow the
Commission would make an announce
ment regarding the question of suspen-
sion. The policy of the Commission is to
suspend, rather than to approve, and the
opinion is fairly safe that the rates will
be hung up until the situation can be
thoroughly investigated. A decision has
been reached in the New Jersey COM
muter cases, which will be announced
soon. 1t is understood that the Commits
sion will spend the remainder of the day
on those matters and in preparing an
order putting into effect the general sus-
pension of freight increases upon which
action was taken day or two ago.
w. E. B.
THE NEW RATES SUSPENDED.
WASHINGTON, July IA. Tentative
action was taken today by the Interstate
Con-, Copp,icSior, with 70