New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1916-07-26
DECISION AGAINST
SWITCHING CHARGE
3 ARMERS AND MINNEAPOLIS
MlLLERS EXPECT TO SAVE
!
THOUSANDS
LOCAL CONCERNS WILL NOT
REAP ANY PARTICULAR
BENEFITS

Savings of thousands of dollars in
switching charges annually to Mime
apolis milling interests and to farmers
of the Northwest was assured yesterday
in decision by the Minnesota supreme
court in the first of series of cases
involving the switching railroads of
Minneapolis.
The supreme court holds this partic-
ular road, the Minneapolis Eastern
railway, is really only a part of the
Milwaukee and the Omaha railroads,
which jointly own the Minneapolis
Eastern. That is to say, the owner
of roads may not add to their charge for
carrying grain to terminal houses or
mills on the switching roads any more
than they may charge for switching a
car of grain from their main track to
one iof their sidetracks.
The switching charge, which has
been collected for many years is $3.50
car.
Under the decision the roads must
refund the switching charges collected
in the last six years. The courts stand
is believed to forecast general "iron-
ing out" of the switching situation in
the Minneapolis terminal which would
save the public a sum which even
those most familiar with the problems
involved will not attempt to estimate.
The case will be appealed to the
United States supreme court, according
to J. B. Sheehan of St. Paul, counsel
for the Omaha.
The immediate effect Of the decision
will be the removal Of the switching
charge on cars delivered to the East
.ern8 by lines which are competitive
With The Omaha and Milwaukee at
points in the. grain producing territory
All this indirect effect of the case is
not included in the estimate of $4,000
which will be saved the market and
it's shippers.
The decision of the high court, which
was unanimous and comes after a
period of litigation extending from
1912, removes a condition which has
been in operation since the formation
of the Eastern in 1878.
3'The decision opens the way for
general clean up of the tangled switch
ing situation in the Minneapolis ter
minal," said W. P. Trickett, director
of the Minneapolis Traffic association,
which brought the suit. "We are
happy over the outcome of the litiga-
ton and look for favorable action in
our complaints in similar cases."
The above decision affects the local
mills and elevators but very little.
There has been no switching charge in
the strict sense of the word in New
Ulm. All grain cars received by the
mills here from points outside of New
Ulm are switched by the railroad COM
panies to the mills without any extra
charge. Should, however, Bingham
Bros. or the New Ulm Farmers Elevator
Company load car from their respec-
tive elevators and have it transferred
to either of the mills, the railroads
make charge of $3.50 which is called
switching charge" but which, in
reality, is only payment for services
rendered for which the railroad companies
have received no other compensation
whatever. 1t is only when the Farmers
Elevator or Bingham Bros. ship grain
to some milling concern or elevator in
Minneapolis, that they were subjected
to this switching charge that the SUI
preme Court now says is contrary to
law and morals and which must be
refunded for the past six years. H.
L. Beecher of the Eagle Roller Mill
Company, and for many years in the
railroad business, says that the Eastern
which has been gathering in the switch
ing charges is in reality a combination
of various railroad interests formed
Tor the purpose OF getting at the pocket
books of the shippers by taking charge
of the switching business in the cities.
He says that the mills here will not
be affected in any way by the decision
as they have no shipments handled
by the Eastern.
A. w. Bingham of Bingham Bros.
says that locally they are practically
not affected at all, because they sell
all their grain to the mills. Whenever
they have elevators outside of New
Ulm and ship to Minneapolis, they
have been subjected to this switching
charge and would be entitled to some