New-York tribune., 1913-07-20
DULUTH WINS LOWER
FREIGHT RATE FIGHT
Interstate Commerce Commits
sion Orders Reduced Charges
from Eastern Points.
TWIN CITIES GAIN A POINT
Ruling Denies Duluth's Conten-
tion That Lake and Rail Traf-
fic Rates Should Break
at It's Wharves.

Washington, July l9.-Duluth won
substantial part OF its freight fight before
/ the Interstate Commerce Commission to-
day, when a reduction Of class rates to
that city from Eastern points was ordered
| and the present rates were held TO be
| discriminatory Duluth's contention that
rates on lake-and rail traffic from the
/ East ought to break at its wharves. how
/ ever, was not sustained.
In brief, the commission held that the
present all-and-lake class rates 10 Du-
. luth from points east OF the Indiana
Illinois state line were unreasonable
and that the existing scale of through
! rail-and-lake class rates TO Duluth was
unduly discriminatory as compared with
rates TO Chicago. IL was ordered that the
! first class rate from the East to Duluth
should not exceed 60 cents a hundred
pounds and that the rate from trunk
line territory 10 Duluth. rail-and-lake,
should not exceed those TO Chicago.
The commission also held that the
present Joint through rail-and-lake rates
from the East TO Duluth deprived Duluth
"of the advantage OF its location at the
head Of the lakes" and resulted '1n un-
ONC uiSNIillllldDOH against lSulhNl NAiiN'
will be relieved In some measure by the
reduction here required"
Rate Contention Rejected.
Finally. the commission held that "the
contention OF Duluth that the class rates
on rail-and-lake traffic to the northwest
ought to break on its wharves instead
of at the Twin Cities minneapolis and st.
PauD, and that in fairness TO Duluth
the sum of the intermediate rates is the
lowest rate adjustment that Minneapolis
and St. Paul should have. is not sus-
tained. Duluth cannot ask for more than
a reasonable scale Of rates and reason
able relation Of rates as between itself
and the Twin Cities. To have the rates
break at a particular point is not an in
herent rate right"
The railroads were ordered by the com
mission 10 submit tariffs by October /
containing the changes directed. and also
! providing for the discontinuance OF dis
elimination against Duluth and towns
adjacent to Minneapolis and ST. Paul
! caused by loose policing OF transit privi-
leges and long-and-short-haul violations.
The Commercial Club OF Duluth inst-
tuted the complaint before the Interstate
Commerce Commission attacking the pres
ent rate structure The petition was di-
rected against large number of rail-
| roads operating in trunk line. Central
Freight Association and Western tcrri-
tories, and also against boat lines oper-
ating on the Great lakes. Ghe complaint
attacked all class and commodity freight
rates. alleging that they subjected Euluth |
to unreasonable disadvantage. that they !
were unjust inherently and that they af- /
forded such unjust preference to Mime |
apolis and st. Paul as amounted To a |
physical removal Of the head OF naviga- |
tion from Duluth 10 the Twin Cities
Twin Cities Favored.
1t was alleged that Duluth's natural
advantages practically were destroyed
not only by preferential rates, but. con-
tributing 10 that end, Twin City jobbers
were accorded free storage OF goods in
Duluth warehouses; privilege not en-
joyed by commercial houses in Duluth.
Through the exercise Of this privilege 1t
was asserted, Twin City jobbers we're
given the advantage Of transshipment on
tine through lake-and-rail rates. 1t was
contended that the divisions OF these
rates received by the roads operating
westwardy and southwardly from Duluth
were too low as compared with the rates
which Duluth enterprises were compe.ird
10 pay to the same polnfs of destination.
| In final analysis the case resolved itself
! into a commercial conflict between Duluth
| and the Twin Cities the rail carriers TAX
| ing substantially only secondary part in
il. Their rates, i was urged by Duluth,
had been constructed "for the purpose Of
! depriving. and, I'm fact, 10 deprive. Duluth
and other localities of the ratural adyan-
tages OF location and transfer large
part of the benefits thereof arbitrarily TO
Minneapolis and St Paul and other places
| taking the same rates"
The Minneapolis Traffic Association and
| the St Paul Association Of Commerce as
sumed a great burden OF the defence Of
the existing rate structure They main
tained that every reason for the main
tenance Of the present rates was backed
"by sound commercial transportation and
! legal principles"
-AH nnnpNC kTI ONO INSTANCE