The Birmingham age-herald., 1913-07-20
DULUTH WINS BIG
VICTORY IN FIGHT
FOR Freight RATES
Reduction of Class Rates to
City From Eastern
Points Ordered by
Commission

Washington, July 19.-Duluth. Mimi,
won substantial portion of its freight
rate fight before the interstate commerce
commission today.
A reduction of class rates to that city
from eastern points was ordered. The
present rates were held to be- discrimi-
natory. Duluth, in its contention that
rates on lake and rail traffic from the
east ought to separate at its wharves,
however, was not sustained.
The so-ealed Duluth case grew out of
the commercial unrest between Duluth
and other cities similarly situated at
the head of great lakes navigation on
the one hand and Minneapolis and st.
Paul and other interior cities in the
northwest on the other.
The Twin Cities have grown apace
in population and volume of trade in
recent years while Duluth and Superior,
although commandingly located, fell
in an opposite direction and have not
increased so rapidly.
An investigation of the dissimilarity
of development convinced Duluth that
the reason was to be found in the ex-
isting lake and rail freight rates from
eastern points of origin from Duluth
to Minneapolis and ST.. Paul.
Instituted Complaint
The Commercial club of Duluth in
stituted a complaint before the inter-
state commerce commission attacking
the present pool rate structure. The Pc
tition was directed against a large
number of railroads operating in trunk
lines, central freight association and
western territories and also against
boat lines operating on the Great
Lakes.
The complaint attacked all class and
commodity freight tariffs alleging that
they subjected Duluth to unreasonable
Disadvantages and that they were unjust
inherently; that they afforded such unjust
preference to Minneapolis and St. Paul
as amounted to a physical disability in
the removal OF the head of navigation
from Duluth to the Twin Cities.
1t was alleged that Duluth's initial nat
ural advantages practically were destroy
ed not only by preferential rates, but con-
tributing to that end the Twin City job
bers were given free storage of goods i'll
Duluth warehouses. This privilege it was
said was not enjoyed by commercial
houses in Duluth. 1t was contended the
divisions of these rates received by the
roads operating westwardly and southern
ly from Duluth were too low as COM
pared with the rates which Duluth enter
prses were compelled to pay to the same
points of destination.
Duluth's principal contention was that
the only way in which the alleged in
pustice could be corrected was by having
the rail and rail and lake rates separate
at the rail ports. This it was urged in
hearing and argument would have the
effect of destroying the discrimination OF
the railroads in favor of Minneapolis ano
| st. Paul and would accord to Duluth the
full natural advantages of its geographic
cal situation.
Commercial Conflict
Duluths case resolved itself into a COM
mercial conflict between Duluth and the
twin cities, the rail carriers taking sub
stantially a secondary part in it.
The Minneapolis Traffic association and
the st. Paul association of commerce
maintained that every reason for main
tenance of the present tariffs was backed
by sound commercial transportation and
legal principles
They urged in their brief:
when Duluth complains of its lack of
jobbing opportunities, the Canadian tar
iff wall on the one hand and the distance
to the consumer on the other come nat
urally and promptly into view as dis
advantage of Duluths geographical sit
uation.
when they complain of rail and lake
storage facilities that are absolutely in
dispensable aids to competition between
all rail and rail and lake lines, the con-
elusive answer comes:
You are SO unfortunately located
that you do not get the inherent benefit
of these necessary transportation facili-
ties
ut is elementary that it costs more
to transport the finished product than
the raw material. Duluth is not located
in close proximity to the consuming COM
munity and gets a short haul of the raw
material and a long haul fabricated ar