Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1939-01-26

super-abundance of truck Transport
tation service at present available
within the state of Minnesota. 1t
is obvious that the greater the num-
Der of individuals engaged in the
truck transportation business, the less
traffic there will be available for
each operator. Since the volume of
traffic to be moved is limited, it fol-
lows that an increase in the number
of truck operators will lessen the
amount of traffic available for each,
and thereby increase the cost to such
an extent that further increase in
truck rates will be necessary, which
in turn will pave the way and pro-
vide grounds for a further increase
in rail rates.
A study and statement prepared
and presented by our Statistical De-
partment disclosed that as a whole,
the truck transportation service has
been and is now being operated at a
loss. For 1887 the reports of Ia of
the largest fixed termini operators
showed that they had in service 346
trucks and an investment of $685.
600; that their gross operating rev.
enue was 5000, 900; and that their
operating expenses and taxes ex-
ceeded that sum by the amount of
$21 ,304. If to this net income deficit
or loss we add for return on invest
ment an allowance of 7 percent the
deficit is found to be $97 ,945, or a
sum equivalent to At percent of the
operating revenue of that year.
The fixed termini operators have
applied for further increase in
rates in proceeding now closed and
awaiting decision by the Commission
The law provides-as do all regu-
latory laws-that in the fixing of rea-
sonable rates for truck transporta-
ton service, the Commission must
take into account and base rates upon
the cost of rendering the service, plus
a reasonable return upon the prop
erty and equipment used and neces-
Sary in rendering the service. In my
opinion, adequate and cheaper truck
the trucks for hire were reduced to
one-half the number now in opera
ton.
Under provisions of the Hoch-
Smith Resolution in 1925, the Inter-
state Commerce Commission was di-
rected to make general survey of
the reasonableness of the then exist
ing rate levels applicable to the var
ious kinds and classes Of freight traf-
fic handled by rail in the various Sec
tons of the country. Numerous
hearings were held in every section
of the country, extending over a per-
iod of several years. Hearings held
in connection with the rates on grain
and grain products were the most
extended and exhaustive of any in
rate making history. Next in i'm
portance were those pertaining to and
dealing with class traffic or manu-
featured articles.
Commission Protested Increase.
Joining with the State Commission
of North Dakota and Montana, the
Minnesota Commission protested any
increase in the local rates on grain and
grain products from point of produc-
ton to the Twin Cities and Duluth
primary markets. Our experts pre-
pared and presented exhaustive cost
of service and other studies in support
of the Commissions contention In
that connection, I may say that the
rates contended for in that proceeding
were for the most part slightly higher
than the rates which Interstate Com
merce Commissioner Eastman, in a
dissenting opinion, found, and there
set forth as reasonable rates for appli-
cation in the three states named.
We likewise opposed the so-called
rate break method prescribed and
adopted by the 1. c. c. in that case.
For example, by the rate break meth
cd prescribed, the through rates from
points of production in Minnesota and
North Dakota to the Chicago market
were divided into two parts: Cd
local rate from point of production to
the Minneapolis primary market, and
(2) a proportional rate from Min
neapolis to Chicago; the combination
of the local and the proportional
rates being equal to the through rate.
Unfair Rate System.
Inasmuch as the rates prescribed
by the 1. C.. c. resulted in a sub
stantial increase in both the local
and through rates on grain and grain
products, the following example is
cited to illustrate what I maintain
to be an injustice to the grain pro-
Queer. The through rate prescribed
for wheat from Noyes, Minnesota to
Chicago, ILL.,, was 33 cents per 100
pounds, the division of that rate
being as follows: From Noyes to
Minneapolis, distance of $50 miles,
the local rate was fixed at 81 cents
per 100 pounds, whereas from Min
neapolis to Chicago the proportional
rate fixed was IL cents for haul of
419 miles. The wheat may be milled
at Minneapolis and the manufactured
product shipped on to Chicago at the
12-cent proportional rate.
The improperly of the low proper
tional rate is further amplified when
we take into account that the aver