Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-07-19
Interstate Commerce Com
mission Gives Decision
in Freight Case.
CHARGES ARE TOO HIGH
Contention of St. Paul and Min
neapoIiS Against Change
Not Sustained.

Washington, D. c., July 19.-Duluth,
Mimi, won a substantial portion of
its freight rate fight before the inter
state commerce commission today
when a reduction Of class rates TO that
city from eastern cities was ordered
and present rates held TO be discrim
inatory. Duluth's contention that rates
on lake-and-rail traffic from the east
ought to break at its wharves, how
ever, was not sustained.
The commission held the present
rail-and-lake class rates to Duluth
from points east of the Indiana and
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 10 Chicago. IT, ordered the
first class rate from the east to Du-
luth should not exceed 62 cents per 100
pounds; and that rates from trunk line
territory to Ds&uth rail-and-lake,
should not exceed those to Chicago.
The commission also held 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 lin
undue discrimination against Duluth
which will be relieved in some meas
ure by reduction here required"
COMMERCIAL UNREST CAUSE.
The so-called Duluth case" grew
out of the commercial unrest between
Duluth and other cities similarly stu
ated a. the head of the great lake navf4
cation on the one hand, and Mime
apolis 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 re.
cent years, while Duluth and Superior,
although commandingly located, have
not increased so rapidly. An investi-
CATION of the dissimilarity of develop
ment convinced the resident manufac-
turers and business men of Duluth
that the reason was to be found in the
existing lake-and-rail freight rates
from eastern points of origin through
Duluth to Minneapolis and st. Paul
The Commercial club of Duluth
thereupon instituted a complaint be-
fore the interstate commerce commits
! sion attacking the present 'rate struc-
! ture. The petition was directed
! against a large number of railroads
| operating in trunk line, Central
/ Freight association and western ter
rttories, and also against boat lines
, operating on the great lakes. The
complaint attacked all class, and COM
modify, freight rates. alleging that
/ they subjected Duluth to unreason-
able disadvantage; that they were un-
I just inherently; and that they afforded
such unjust preference 70 Minneapolis
and st. Paul as amounted to physical
removal of the head of navigation
from Duluth to the twin-cities.
ADVANTAGE DESTROYED.
/ II was alleged that Duluth's natural
/ advantages practically were destroyed
not only by preferential rates, but,
contributing TO that end, twin-city job
| bers were accorded free storage OF
/ goods in Duluth warehouses, a priv
! ilege not enjoyed by commercial
| houses in Duluth. Through the exer-
else Of this privilege, it was asserted,
J twin-city jobbers were given the ad-
vantage Of trans-shipment on the
! through lake-and-rail rates. 1t was
contended that the divisions of these
rates received by the roads operating
westwardly and southwardly from Du-
! luth were too low, as compared with
the rates which Duluth enterprises
were compelled TO pay to the same
4 points of destination.
Thus. three principal features were
involved in the Commercial clubs
complaint:
1.-The justice of the rail-and-lake
| rates from eastern points to Duluth.
2.-The justice of the through
rates from eastern points to the twin
cities by way of Duluth and Lake
Michigan ports.
3.-The right OF the railroads 20
maitain free storage warehouses at
Duluth from which twin-city jobbers
might distribute goods directly to their
trade in Duluth's natural territory.
BENEFITS FROM LOCATION.
Duluth's principal contention was
that the only way in which the alleg-
ed injustice could be cured was BY
having the rai.-and-Iake rates break
at the lake ports. This, it was urged,
in hearing and in argument, would
have the effect Of destroying the dis
GRIN alton of the railroads in favor
OF Minneapolis and st. Paul and would
accord 70 Duluth the natural adyan-
tages Of its location,
In nnal analysis, the case resolved