The Nonpartisan Leader Newspaper, August 31, 1916, Page 8

Jr Transfl: Rates Aid Dy 'State-Owned Elevator in N orth Dakota Would Get Benefit of Through Rates from ~Shipping Point to the Twin ~C1t1es’ vators within the state of North Dakota—frelght rates— vanishes in thin air when it is examined. Everyone knows that freight rates within this state are high, much higher in many commodities and classes than in other states. This fact is continually empha- sized to the people by the complete lack of manufacturing industries, packing plants, milling on a large scale, and so forth. Relying upon these well known con- ditions, objectors have declared that the NE of the chief objections of O those opposed to terminal ele- sum of the local rates from shipping’ points in North Dakota to the markets, as Duluth or the Twin Cities, would- make it impossibie to maintain $erminals in this state. The through rate, they declare, is so much less than these two added local rates that there would be no business for the North Dakota terminal elevators. “TRANSIT RATES” OVERCOME OBSTACLES TO TERMINALS No doubt many people who on principle favor the establishment - of ' terminals within this state where grain grades can be formed and enforced without foreign interference and chamber of commerce influences, have felt this was a fatal bb,)ectxon and have concluded that until there is a revolution in freight rates such - & terminal is out of question. But in this they are mistaken. Such North * Dakota terminals would get exactly the same rate as the terminals at Duluth, St. Paul, and Minneapolis, plus a small charge for unloading and reloading and switching. This’ switching charge where in effect now ranges from two to two and one-half cents per 100 pounds, and would amount to little when compared with the advan- tages that would be reaped by having grain graded cleaned, and loaded for the market in the best possxble shape—and under the control of North Dakotans instead of - gamblers: who manipulate quotations and grades to then' own advantage The way in which a termmal elevator at Fargo or Grand Forks: or: Wahpeton could enJoy the same rates as those now operating in Duluth, St. Paul and Min- neapolis, is by the application- of “transit” rates,'so-called. - - = : Briefly, a “transit” freight business what a stopover is to the passenger business. A carload of wheat loaded at~ Beach, for instance; 'and destined to the lakes or the Twin Cities, ‘pays 21 cents per 100 pounds. transit rate this same carload of wheat : could be halted at Fargo, cleaned, graded, ground into flour, bran, graham. shorts and other pro_ducts and these products or rate is to the . Unider a' The harvest field. A Red the cleaned grain, could be reloaded and sent on to Duluth without paying one cent- more in freight rates—except the switching charge just mentioned. In practice. the Fargo terminal elevator would pay the 21 cents when the wheat arrives here, plus the two and one-half cents and when: it shipped out the cleaned - grain, or the flour or ground wheat, an equal tonnage would be carned to. Duluth free of chargé THROUGH RATE IS OFTEN LITTLE ABOVE LOCAL This sounds startling at first—to think of a haul of several hundred miles free of charge—but it is a plain fact in plam business, and such arrangements are in wide use. In a sense the haul to Duluth would not be free of. charge, for the railroad - company would be hauling a carload of wheat from Beach to Duluth at the rate of 21 cents per 100 pounds whether it stopped off for a few days at Fargo or not. < All the railroad company .would ask would be payment for the imconvenience of uncoupling the car, setting it on the elevator spur, picking up the car and attachmg it to a through freight train again. These expenses have been care- fully calculated, as is the custom of rail- roads, and embodxed in the small switch- ing charge, which, as stated, does not exceed two and one-half cents. Persons who have ‘tried to discourage the farmers and the farmers’ legislature from their purpose of building a state- owned terminal elevator within the state, . have overlooked this everyday busmess arangement. These “mlllmg in trans:t" or “c]eamng and grading in transit” rates are now in effect- by all the northwestern railroads" where - the enterprise of the people of communitiés has developed large indus- tries that need them. ’l'here are a num- ber - of “stations even in North Dakota ‘now Where grain can be stopped for:these purposes and - be - reshipped -at: :the. through rate prevailing, without regard. to the sum of the two local rates, and South Dakota and Minnesota are dotted * with stations where the same arrange~ ment is in eEect OBJECT OF “’I'RANSIT RATES” : TO STIMULATE LONG HAULS : ‘are made is that by making them attrac tive ‘a great volume of buamess can chandxse are lower than retail mtes_ If obtained; just as. whiolesale rates on me: > iver valley scene shipper ships his goods all the way: by the same railroad. If shipping —is done 'in short jumps some. other railroad - may get it at some ‘competitive point, and the road that does the first stage of the business will have entailed:the expense of original handling and terminal handling for the profit on a very short haul. that will draw business for a long haul, and the railroad can figure economies by wholesaling its service, knowing that no competitor can step in to grab its freight at some strategic point.. With' this advantage guaranteed, the most lmportant purpose of the long haul rate is secured. If this advantage can be guaranteed without continuing the haul at one time, the railroad—all rail- roads—are willing . to . grant stopover privileges for freight if the shipper is So rates are: made . “ ‘willing to pay the dctual additional cost. . In short we have “transit” rates. Thus the railroads have “transit” rates for the beet sugar manufactured at Billings, Mont., so that great quantities of it are stored in-Fargo without going to the Twin ICities or other eastern dis- tributing points, and the outgoing ton- nage is re-routed from'this place without " having to pay the local rates. . Railroads grant these same privileges to the great. quantities of junk metal that move along- Junk dealers can pick up’ their - lines. scrap iron, wrought iron, and copper:all’ the way across the state, have it come in small lots to Fargo a.nd stop here; where it is sorted into cast iron, wrought iron, zinc, .brass, copper, etc., and then when they have sufficient quantmes, they .can reship it in carload lots already sorted, directly to the original destina-’ tion without paying additional freight. Thus 100 pounds of scrap iron picked up at Dickinson ‘gets a through rate from Dickinson to Minneapolis, instead of ‘a local rate to®Fargo plus the local rate from Fargo to Minneapolis, as it would under ordinary circumstances. And it can be left forone year in Fargo and still enjoy this rate. Transit rates by which herds of sheep and = cattle ' are stopped at favorable ranges for weeks of fattening, and then sent on to the packing plants are also in’ effect, the shipments paying in the Rates for Fargo Terminal Point of Origin Streeter Marion .. Davenport In column iour of the above ‘table. are sh barley, rye, flour and wheat- kets in Minneapolis, St. Pnulpand Duluth, the rates to these three terminals bei roducts from the ‘Tespective points of origin to th own the through rates on wheat, oats. e mar- same. “These are the rates which the ternunal elevators enjoy on shipments of. grains, and: whieh’ opponents' of: terminal: elevators in North Dakota have declared k cquld not be enjoyed by such North Dakota terminals:: In‘column one:of the same table are shown the rates from the same termins Fargo, and in column two. the local rate.from Fargo to the Twin Cities or These locals added together give the sums shown in column three, and represen . rates which opponents of terminal elevators have declared would be enforced: The theory upon wlnch through rates 2y Is. Y. T ] : : DULUTH, AND.ST. PAUL, by the apphcatmn L or cleamng in trans:t”»pnnclple., In ord be Ty Terminals - R L { i i i1 i