The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1925-11-19
STATE OPENS WAR ON
FEDERAL RAIL RATES
POWER OF u. S. GOVERNMENT
INSIDE OF MINNESOTA WILL
BE CHALLENGED
SAUK CENTRE AFFECTED
INTERSTATE COMMERCE CON-
MISSION RULINGS WILL co
TO COURT

In its issue of Oct. 10Th the Herald
called attention to the fact that the
business men of Fargo and Grand
Forks, N. D., had caught the Twin
City jobbers and Railroad and Ware
house commission asleep at the
switch and through the Interstate
Commerce Commission had promul-
gated freight rates that were highly
discriminatory to several towns of Min
nesota, Sank Centre included.
Tuesday of this week the Mime
sofa Railroad and Warehouse COM
mission served notice on the affected
railroads in Minnesota to appear be-
fore the commission at a hearing to
be held at the Capitol, st. Paul, to
show cause why they should not be
compelled to re-establish rates or
dered by the commission, instead of
charging the present rates ordered
by the Interstate Commerce commits
sion.
Steps taken by the Minnesota COM
mission are, regarded as of nation
wide Importance.
Forecast has been made that ulti-
mately the whole question will be
threshed out by the United States Su-
preme Court. The order of the state
commission is expected to be resist
ed.
The Fargo case grew out of an ap.
plication of the Fargo Commercial
Club, which appeared to the federal
commission for relief from a rate
which gave Moorhead, across the river
a cent advantage in competing in
Minnesota territory.
This, according to the complaint,
tended to build Moorhead, Mimi,
jobing center, to the detriment of
Fargo, N. D., which contended it was
being Disseminated against Adjust
ment of rates to prevent discrimina-
ton was sought. The federal COM
mission, after hearings before an ex-
aminer, sustained the claim of dis
elimination, and in an order moved
the ratebreaking point back $50
miles into Minnesota, determining
what rates should be charged from
specific points in Minnesota into the
zone thus created. The effect was
disruption of freight structure in
Minnesota.
Herald readers will recall that a
few weeks ago the Minnesota Rail-
road and Warehouse commission
made an application to the Interstate
Commerce Commission to reopen the
case but the petition was denied.
According to members of the state
commission validity of the eastman
law, of 1913, which established dis
lance tariffs for freight rate making
in Minnesota, is in jeopardy. If the
federal commissions authority is to
go unchallanged, the nondiscriminat-
DRY distance basis for making rates,
a principle upheld by the Minnesota
Supreme Court, is set to naught.
Under the federal commissions
principle of adjusting rates, all rates
were raised. Beneficial effects upon
Fargo now are questioned.
So fas as the Twin Cities and 9th
er points named in the federal order
are concerned, the only effect is to
restrict the trade territory. Inland
jobbing centers today are conducting
indignation meetings. A specific ex-
ample is that Minneapolis, St. Paul
and Saltwater have been recognized
as common rate point. The order
names Minneapolis and st. Paul and
fixes the rates from those points in
to the Fargo zone, but it does not dis
turb the Saltwater rate. The effect
is that Saltwater now can charge the
old or lower rates, and its position
as a jobbing center is made strategic,
while discrimination is practised
against Minneapolis and St. Paul,
shippers claim.
peting inland jobbing centers, afford
a specific example. Sank Centre is
within the compulsory. features of
the order and its rates are approx
imately 40 per cent higher than those
from Alexandra. Sank Centre ship
pers are forced to meet the jump in
the rate at the line of the Fargo zone,
which is drawn in Minnesota.
aThe rate structure is the nerve CEN
ter of commerce and industry in Min
nesota." Ivan Bowen, member of the
commission, said Tuesday. "The whole
state was built on that rate structure.
Business is thoroughly disturbed by
the federal interferences with our
power to make and maintain rates UNI
der which industry can thrive. We
propose now to test out the power
of the federal government to inter-
fere with out preogatives.
The notice and order of the state
commission follows:
sThe railroad and warehouse COM
mission of the state of Minnesota
having been advised that the Great
Northern railway, the Northern Pa
cific railway, the Minnesota q Inter
national railway, the Minneapolis, st.
Paul & Sault Ste. Marie railway and
the Chicago, Milwaukee & st. Paul
railway and its receivers are charging
rates for the transportation of freight
between St. Paul, Minneapolis; Du-