The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1919-02-21
PROTEST UNDUE
FREIGHT CHARGE.
MINNESOTA HOUSE COMMITTEE
APPROVES RESOLUTION
ASKING REDUCTION.


The Minnesota house committee
has approved a resolution asking the
Railroad administration to reduce the
freight rate on iron ore from 81 to at
least 637a cents a ton, effective prior
to April I. In connection with the
resolution, John A. Savage of Du-
luth presented the following to the
hearing:
"The railroad transportation of
Minnesota iron ore began in 1884 on
the D. & I. R. Since then four other
railroads have participated, the D.
M. & N. beginning in 1898, the
Great Northern in 1898, the 500 in
1911, and the N. P. in 1913. All
use the same style of equipment and
docks. The Interstate Commerce
commission in 1915, after thorough
investigation, concluded in it's de-
cision hereinafter referred to, that
the Great Northern could carry ore as
cheaply as the D. M. & N. and D. & l.
R., and that any rate fair to these
roads could be satisfactory to the
500 and N. P. on Guyana range traf-
fic.
Freight Rates.
consequently you are justified in
viewing this freight rate as one APP
plying equally to all ore producing
in Minnesota
"Prior to 1912 the rate was SOC
from the Mesabi, 90c to 81 from the
Vermilion. The 500 had established
rate of Csc from the Guyana. Dur
ing the winter of 1911-12 the D. & /.
R. and D. M. & N. voluntarily re-
duced their rates to Coo, and the
Great Northern followed suit. Upon
April 5, 1914, the /. C.. C. (order
5370) ordered the Mesaba and Yer
million rate reduced to 55c, effective
June Is, 1915. The 500 and N. P.
Immediately reduced their rate on
Guyana ore to this figure. In the
spring of 1917 the l. C. C. gave
special permission to increase this
rate to 63kc.
Increased to 81.
There it rested until June 25th,
1918, when Director General Nc
Adoo's order increased it to 81;
which is now in effect. In addition,
the federal railroad administrator
has decreed that the mining company
must pay in advance the full cost of
the railroad spur leading to its shaft
or pit, and also pay the full cost of
stockpile tracks, rental and operating
cost of locomotive serving stockpiles,
the expense of shifting stockpile
tracks, and has approved a system of
demurrage charge on iron ore docks
and awaiting loading into boats.
They also draw on us for freight
charges at once after a vessel is
loaded, where before we had As days
to pay these heavy bills.
Greater Volume Handled.
"All this has been added since the
order $3.50 Of the 1. C. C. dated April
S, 1915, which ridiculed the Great
Northern's contention that 55c was
not liberal rate. 1t is true that the
cost of operation has substantially
increased since 1915, but the total
ore movement in 1917-1918 aver
aged 51.35 per cent greater than the
average for 1913-1914; a greater
volume handled by practically the
same docks, tracks, and equipment
surely means large economies.
furthermore, the official United
States bulletin Of Feb. 8, 1919, pub
fishes as the authorized statement of
Director General Hines that there are
but IL railroads in the entire country
who for the 13 months ending Jan.
81, 1919, have paid in to the railroad
administration excess earnings over
81, 100000. Among them we find
the Missabe, the Iron Range and the
N. P. The Missabe leads all the
railroads in the country with $10,-
100000, which based on 1918 traffic
amounts to 50hc per ton of iron ore.
The same surplus return per ton on
the d. & I. R. is $3.50. These roads
returned these huge excess earnings
operating at 631sc during April, May
and until June 25, and at 81 there
after.
Protest Determination.
Son the one hand you have these
astonishing figures, and on the other
the statement Of the I. C. C. in 1915
that all the Minnesota iron ore rail-