The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-07-28
Proximity to CanadaA Where
Subsidies Are Granted,
Brings Lower Rates
Here, Claim
LOWER THAN NEIGHBORS
Railroads Hold North Dakota
Grain Shippers Are Much
Better off Than States
To South

Briefs will be filed by representa-
tives of the railroads in the2railrsad
commissions investigation in the
reasonableness of intra-state grain
rates, before any action is taken by
the railroad commission, it was stat
ed today after the conclusion Of the
hearing which continued through two
days. j. w. Goodman, traffic COM
missioner of the Grand Forks Con,-
mercial Club, who is representing the
state mill and elevator, also will file
a brief, and no early decision Is ex-
pected.
The railroads will complete the
task they undertook Of answering
complaints made in the hearing,
which include complaints which have
been made on the platform in many
parts of North Dakota.
The railroads position with respect
to grain rates is, as unfolded before
the commission, that North Dakota
has more favorable grain rates than
most other states and this because OF
the advantage of her location with
respect to Canada.
Canadian rates from points in Man
itoba to Fort William and Port Arthl
ur are admittedly on lower level
than for comparable distances from
North Dakota to Minneapolis and Du-
luth. These rates are lower, accord.
ing to the railroad representatives
because of enormous subsidies in
land grants for the building Of rail.
roads, subsequent cash bonus pay
ments and land grants by the Cana
dian government and aid in financinc
the railroads. The Canadian rail-
roads, in return for the subsidy,
agreed to make lower grain rates.
Received No Grant
The Great Northern railway rcceiv.
ed no land grant at the time of build
ing, the Northern Pacific being the
only road so favored, according to
H. j. Hagman, attorney for the Great
Northern. None Of the American
roads have received subsequent sub
sides. However, he said. the effect
of competition between the lov-rate
Canadian railroads and railroads in
North Dakota has cAused lewsH
freight rates for the North Dakota
farmers. The further south from the
Canadian boundary the less this in
fluence is felt, he said, being felt
even less in southern than in north
ern North Dakota.
The railroads, according to their
representatives, have in effect lower
rates from North Dakota points to
terminal markets and between points
within the state generally than are
found in Montana, South Dakota,
Nebraska and Iowa, the favoritism re-
sulting from the Canadian subsidies.
Only s percent of the grain origin
ating in North Dakota moves in intra-
state business, or from point to point
within North Dakota, while the great
bulk Of the grain goes to terminals
in Minneapolis and Duluth. The rail-
roads maintain that the rates on
grain from North Dakota to Minnea-
polls and Duluth are lower than they
should be, and that if any change in
rates Ii to be made to remove the dis
parity between intra- state and inter-
state rates it should be made by in
creasing the latter rates. This, they
argued, would mean tremendous IN
crease in the freight bills of the
farmer and affect the price of his
wheat. The railroads representatives
expressed willingness to permit
rates to remain where they are at the
present time, not asking for in
creases.
Two questions are before the rail-
road commission as result of the
hearing: Should intra-state freight
rates on grain and flour be lowered,
and should freight rates on grain and
flour from and to points within
North Dakota and the state mill and
elevator at Grand Forks be lowered?
What Mill Wants
]. w. Goodman. traffic manager
for the Grand Forks Commercial
club, speaking for the state mill and
elevator at Grand Forks. urged that
the rates be lowered which would be
compensatory to the railroads and
still permit the state mill and eleva-
tor at Grand Forks to do business
with points In western North Dakota
on as favorable q basis as Minneapo-
lis and Duluth mills and elevators.
Although the railroads have granted
the state mill and elevator. at, Grand
Forks a milling in transit privileges
he urged that the higher intra-sta.e
rate caused the mill to tie up more.
money in freight rates than other
mills, before final settlement is.
made, while the railroad Representa-
tives asserted that Twin City flour
mills were at a disadvantage with
Grand Forks in this respect.
p. 2. Peterson Of the Fargo Com
mercial club, who attended the hear
ing, made q brief statement before
the commission asking that any BEN
eft which may be given to Grand
Forks or other North Dakota points
In q readjustment Of freight rates al
50 be granted TO Fargo. a
v. F. Cadiux Of Jamestown, repre-
senting the North Dakota Farm Burr
can Federation, the Valley City Ship
pcrs Association and the jamestown
Commercial club, said that the FARM,
Bureau WAS not particularly interest
ed in the milling in transit privilege
levels of rate, in.which the state mill.
and elevator ct Grand Forks is vital.
ly interested.
He said that his organisations felt
that the commission should consider
the transit privilege lgiving mill q
through rate on grain whom it re-
(continued on Page Three)