The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1911-09-16
MINNESOTA ATTORNEY-GENERA
PRESENTS PLAN FOR RE-
DUCTIONS.
MELON CUTTING TOO PROFITABLE
NIT Extensive Slashing-Patrons
Forced to Pay Double.
Profits.

St. Paul, Sept. 14.-The attorney
general, in brief filed with the rail-
road and warehouse commission in |
the case of the state against Wells,
Fargo & Co., express, asked for the |
adoption of a graduated scale Of en-
press rates in Minnesota which would
result in a reduction of about Z per
cent in the gross earnings Of the com.
pany.
He presented tentative scale which
he said was not sufficient, but he asked
that the commission use it as work
ing basis to determine what the SEIZED
ules should be to reduce rates appre
cably, yet allow the company to real
ize a reasonable profit. He said that
a still greater reduction than he rec
commended could be made without de
priving the company of reasonable re
turns.
Shows How "MeIon" Was Cut.
Mr.. Simpsons brief completes the
states case, which was brought be
fore the railroad and warehouse com.
mission last April, when Wells, Fargo
& Co. was cited to appear and show
cause why its rates should not be re
duced. At that time experts of the
state who had examined the books Of
the company presented figures show
ing receipts in this state for period
of months and also estimating the cost
of the service.
Mr.. Simpson said these figures
showed that exorbitant rates were be-
; Ing charged. He cited the fact that
: in 1909 Wells, Fargo & Co. had Great
ed such surplus in the twenty-seven
years of it's existence that it was able
! to pay dividend of 80 per cent on
f, a capitalization of $s,00O,O0O. He said
that not more than $5,000,000 of this
capitalization had been paid up and
that the enormous dividend not only
gave the stockholders their yearly re.
turn of 10 per cent, but also returned
to them three times what they orig.
inally paid for their stock yet left in
possession of it. In this way the
company increased it's capital to $24,
100000. He said this incident was
only sample of what the other com
panies had done. The brief continues
Two Big Profits Paid.
ut has been shown in this investi
cation that the express company has
been paying to the railroad companies
for the express privilege a percentage
of the gross revenues greatly in ex
cess of reasonable remuneration
The rights of the public never have
been taken into consideration BY
either the express companies or the
railroads in fixing the amount to BIZ
paid by the former to the latter. We
have Il situation of two thriving cor
porations obtaining profit for dom:
a business that in the very nature O
things could as we'll be done by on,
corporation, and the public pays two
enormous profits where only on,
would be necessary.
"The only difference of opinion Their,
, can be is to the amount of reduc
ton that should be ordered. That
reduction is necessary cannot be dis
puted. The state has prepared a nev
graduate scale which in large meas
ure would cure the present defects
The present local maximum distanc
rates divide the distances of one t
$40 miles into nineteen classes, tn
charges ranging from 40 cents for dis
tances not exceeding thirty miles t
s1.7O for distances between $40 an
: 400 miles.
, There is one popularity about thi
scale. For instance, the rate per 10
pounds for distances between thirt
; and forty-five miles is as cents, bu
this rate is not used by the company
F; instead, the next higher rate, that c
so cents, is paid. 1t would be just a
= = reasonable to provide that a packag
going for distance between thirt
y and forty-five miles should take tn
next lower rate as to provide that
should take the next higher rate. Thi
= discrepancy exists because the 45-cen
rate is given in the company's schet
:, ule while it is not given in its tart
columns"
g Mr Simpson cited an example t
o show the effect of the reduction
proposed. Under the present sche'
q ule, where the rate is 40 cents for 10
a pounds for a given distance, G.
:. pound package would have to pay tn
!. Accent rate. The attorney general
+ scale would make the rate Of this 6
pound package % cents, or reductio
of IL cents.