Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-01-08
STATEMENT ON
DIFFERENCES OF
FREIGHT RATES
Rail Commission Protests
Against Establishment
Of New Schedule.

Bismarck, N. D., Jan. S.-'The 100
per cent scale of class rates applied to
the traffic Of North Dakota would UNI
justly discriminate against the small
jobbers and manufacturers Of this
state and unduly favor the jobbers
and manufacturers of the Twin Cities,
Duluth, Superior, Chicago, ETC., who
have always been the beneficiaries of
Determinations arising from the COM
'>itive system, and most Of which
now exist in violation Of the act to
regulate commerce and contrary to
the proper theory of equal treatment
Of citizens of the United States at the
hands Of the railroad administration
which. we understand to be an import
ant, motive in the proposal. now to
establish uniform class rates scales"
says the North Dakota railway COM
mission in a formal protest which 1t
has filed with Director General Nc
Adoo, the Hon. C. A. Prouty, director
United States railway commission,
and c. B. McGinty, secretary Of the
interstate commerce commission.
One of the exhibits submitted by
the North Dakota rail board in sup
port Of its protest against the estab-
lishment of the proposed schedule of
class rates shows that the 100 per
cent Gale applied to, North Dakota
traffic would destroy the rate relation
ships formerly existing between the
North Dakota jobber and manufac-
turer and his competitor at outside
jobbing and manufacturing points
such as the Twin Cities and Duluth.
Prior to June rs. 1918, the rate from
Bismarck to Dickinson, a distance of
l15.5 miles. was 65 cents per hun
| 1~oI orI Pu@~oI g. n~,,Y - nS1l-sno1-
approximately 500 miles, 70 cents.
Since June Is the rates have been
81.5 and 87.5 cents respectively. Un1
der the proposed 100 per cent scale
the rate from Bismarck to Dickinson
would be 89.5 cents, or W cents
greater than the through haul from
st. Paul to Dickinson.
Instead of encouraging the de-
Capitalization Of commerce and in
dustry," says the North Dakota rail-
way commission, 1.-The new rate adj
justment would tend to bring about
a greater concentration in the large
cities outside this state. While we
feel that the government ought to
considerl the sociological reasons for
encouraging decentralization, we. do
not rely upon such considerations to
condemn further concentration. 1t is
80 AASNSoSuAy W SNS6S0k kAA0
dous problems surrounding the
terminals now necessary to handle the
business at the Twin Cities, Duluth,
Chicago, ETC.; the desirability of
avoiding still further congestion, and
last, but not least, improve the ire
mendous waste of car space and in
efficient car mileage resulting from
unduly long less than carload hauls as
compared with solid carlots to job
bling points in consuming territory
and short hauls Of l. c. L. freight to
final destinations.
Having in mind the facts shown
on exhibit 1 and taking a minimum
car of canned goods at $4,000 pounds,
and assuming a merchandise car load
ing Of 5000 pounds, from both st.
Paul and Bismarck, the railroad adj
ministration offers the Twin City job
Der 2,242 car. miles of service to de-
liver $4,000 pounds of freight between
Bismarck and Dickinson at a less
freight cost than it offers a Bismarck
jobber 907 car miles to deliver a like
quantity Of freight to the same des-
tination. Supplying this territory
from Bismarck would save 60 per
cent of the a mileage necessary to
Cities. Based OF the carload mini
mum Of 10000 pounds fixed by the
food administration for canned goods
jobbing at Bismarck would save APP
proximately 80. per cent Of the car
miles necessary to make delivery
from the Twin. Cities. We cannot be-
lieve that any scale Of rates which
places "a premium on such a waste Of
transportation facilities will be APP
proved by either the railroad admin
istration or the interstate commerce
commission"
This statement is accompanied by
a table showing that jobbing at Bis
marck n car. Of $4,000 pounds, st.
Paul to Bismarck. 445 car miles, and
four merchandise cars Of 5000
pounds each, Bismarck to Dickinson.
1855 miles, would total but 9O7 car
miles, while jobbing at st. Paul four
cars Of 5000 pounds each st. Paul to
Dickinson, four times 56O.5 miles,
would equal 2,242 car miles.