Railroads: Rates and RegulationsRipley, William Zebina
History
Railroads: Rates and Regulations
Ripley, William Zebina
Railroads -- Freight -- Rates -- United States; Railroads and state -- United States
St. Cloud, Minnesota, is located upon a line of the Northern Pacific
Railroad, seventy-six miles northwest of St. Paul.[218] It is a
competitor not only with St. Paul, but with other local centres in
the vicinity, like Elk River, Princeton, and Anoka, either for flour
milling or for distributive jobbing business. It is about the same
distance as these other places from Duluth or Superior; through which
the entire district obtains its supplies, such as coal from the East
by lake boats; and by way of which its flour must be shipped to the
Eastern markets and to Europe. And yet the rate on flour made at
St. Cloud to New York in 1899 was twenty-eight and a half cents per
hundredweight, as against a rate of twenty-one and a half cents from
St. Paul, this latter rate being enjoyed also by Milaca, Princeton,
Elk River, and Anoka. The rates on coal and other supplies from the
East were likewise proportionately higher than to St. Paul and these
neighboring towns. The specific complaint in this case is of local
discrimination. The Northern Pacific Railroad operates the long line
between St. Paul and the head of Lake Superior by way of Brainerd.
On this business, passing through St. Cloud, it has to meet a rate
compelled at St. Paul by the competition of no less than three direct
lines to Duluth. It avers that this business, taken either way for
longer distances and at lower rates than are accorded to St. Cloud,
in no way affects the rates at that point; and that whatever it can
earn as a contribution to joint expenses decreases the burden of these
upon St. Cloud rates. This is all entirely true from the transportation
point of view; but, viewed in a large way, the situation is altered.
Wheat of local production about St. Cloud is rendered of less value by
practically the excess of the St. Cloud rate per hundredweight over
the rate enjoyed from St. Paul. The Interstate Commerce Commission
found that this was equivalent to a difference of fully $1 per acre
in the value of wheat lands tributary to St. Cloud. And on the other
hand, of course, the cost of all its supplies is enhanced above the
level of rival manufacturing centres. On soft coal this equalled no
less than eighty-five cents per ton. To this the Northern Pacific
replied that the discrimination against St. Cloud was not of its
creation, but had existed before its entry into any St. Paul business
by its indirect route. The Commission found, however, that in fact the
participation of this indirect line on St. Paul-Duluth business did
affect the short-line rate; and that its withdrawal would at least tend
to prevent any further reduction of the St. Paul and related rates. If
the withdrawal did not remove the discrimination against St Cloud it
would not at all events aggravate it. The vital point, differentiating
this case from that of the Savannah Freight Bureau, previously stated,
was the actual damage to the intermediate point due to the existence of
Public-domain text, read in full here on John Shaqi.
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