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Will say, however, that I believe the rates charged on this line. to junction points are giving general satisfaction to shippers. Satisfactory divisions of rates on other staple products have been made, and the legal through rates are being charged.

Respectfully, &c.,

W. G. SWAN,

Gen'l Supt.

Commissioner Osborn to Superintendent W. G. Swan, in reply. OFFICE OF THE RAILROAD COMMISSIONERS,

MADISON, July 14, 1875.

DEAR SIR: Yours of the 12th inst., is received, you state that your company has not as yet been able to agree with all connecting roads upon a basis that would be mutually fair.

We are informed by the general manager of the Chicago, Milwaukee & St. Paul Railway that an agreement has been completed between that company and the Chicago & Northwestern Railway Company for a division of earnings on freight passing over the roads of both companies, and that a proposal to the same effect had been made by them to your company. Permit me again to call your attention to section 2, of chapter 334, laws of 1875, which provides for the selection of referees in case no agreement can be arrived at by the officers of companies concerned, and to urge that such referees be selected, and a decision reached with the least delay possible. I do so from the fact that this office is in r eceipt o complaints from parties who aver that their business has been entirely ruined by the excessive charges growing out of non-compliance with the law on the part of your company and others connecting with it.

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DEAR SIR:-Upon my return home from Madison, I find your

favor of the 14th inst.

You say that you are informed by the general manager of the C. M. & St. Paul Railway, that a proposal to divide rates on lumber going from points on this line to points on his road, had been made by him to this company.

I will say that such proposal has never been received by me, or any other officer of this road, and I believe Mr. Merrill is mistaken when he says that such a proposal has been made.

We shall be ready at any time to agree with him upon any basis that may do this company justice.

In view of the fact that he has stated to you that he made a proposal to us, I think it best to await the receipt of such proposal, or an explanation of the statement made to you, before offering suggestions leading to a further consideration of the subject by the two companies.

I much regret not having had the pleasure of meeting you at Madison on Saturday last, when, in company of Mr. Clark, our General Freight agent, I was prepared to more fully explain to you, the position we occupy and the desire to do what is right, considering all of the principles and interests involved, by which we are prompted.

You refer to complaints that have been made to you by several parties, in regard to excessive charges, whereby their business has been ruined, etc. Is it not possible that some other road has been the object of such complaints? I was under the impression that every lumberman on our line, with a single exception, was well pleased with our rates and treatment of their business. The single exception is Mr. Pedrick, who complains that pre-payment of charges is required, but not that our rates are unreasonable, so far as I have heard.

Your associate, Mr. Paul, understands the circumstances fully. If it is true that other complaints have been made, please give me the facts, name of parties, etc., and they shali have full and immediate investigation.

Respectfully,

J. H. OSBORN, Commissioner.

W. G. SWAN,
Gen'l Supt.

Commissioner Hoyt, in reply.

OFFICE OF RAILROAD COMMISSIONERS,

MADISON, WIS., July 20, 1875.

DEAR SIR:-In the absence of Commissioner Osborn, to whom it was addressed, I have the honor to acknowledge your favor of the 19th instant, and to say in reply, that I will immediately convey to Gen'l Manager Merrill of the C. Mil. & St. Paul R. R., information of the non-receipt by you, or other officers of your company, of the proposal relative to a division of earnings which, in his letter of the 12th instant he claims to have made.

* I trust that the C., Mil. & St. Paul company will make satisfactory proposals as to division of earnings, and that the question of pre-payment will also be speedily disposed of, in conformity with the law.

Respectfully,

W. G. SWAN, General Superintendent.

JOHN W. HOYT,

Commissioner.

Commissioner Hoyt to Gen. Manager Merrill.

OFFICE OF RAILROAD COMMISSIONERS,

MADISON, WIS., July 21, 1875. DEAR SIR:-In your letter of the 12th inst. to Commissioner Osborn, you say, in speaking of an arrangement for a division of earnings, finally made between your own and the C. & N. W. R. R. Co: "We have proposed to make the same division with the West Wisconsin and other neighboring companies, but up to this time we have had no definite answer. I have been expecting a reply from the West Wis. Company, but it has not yet reached us." This fact was made known to the General Superintendent of the West Wisconsin, on the 4th, in the hope that it might lead to an easier settlement of the matter in question. But now we have a letter from Superintendent Swan, dated the 19th, in which he says to Commissioner Osborn: "You say that you are informed by the General Manager of the Chicago, Milwaukee & St. Paul Railway, that a proposal to divide rates on lumber going from points on this line to points on his road had been made by him to this company.

I will say that such proposal has never been received by me, or any other officer of this road.

We shall be ready at any time to agree with him upon any basis that may do this company justice. In view of the fact that he has stated to you that he had made a proposal to us, I think it best to await the receipt of such proposal, or an explanation of the statement, before offering suggestions leading to a further consideration of the subject by the two companies."

It is certainly important that the question involved in this controversy should be settled as soon as practicable, and I trust you will have pleasure in giving it your prompt attention.

Complaints are made from time to time, that your company, as well as others, habitually demand of shippers the pre-payment of charges upon lumber and other articles neither "perishable," nor of "little value," which demand, being clearly contrary to law, requires the attention of the State authorities.

Will you not also see that your agents are properly instructed on this point.

I remain, dear sir, very respectfully,

S. S. MERRILL, Esq,. General Manager.

JOHN W. HOYT,

Commissioner.

General Manager Merrill, in reply.

OFFICE OF MILWAUKEE & ST. PAUL RY. Co.,

MILWAUKEE, July 23, 1875.

DEAR SIR:-Replying to yours of the 21st, I would say, Mr. Swan writes me that the message sent him by telegraph, asking if his company would be willing to adopt legal rates on joint lumber shipment, dividing the earnings on same basis as that adopted by us and the Chicago and Northwestern Company, never reached him, which accounts for his having made no reply at the date of my letter to Commissioner Osborn.

It is probable we shall have a meeting with the West Wisconsin people soon, for the purpose of adjusting this question, although, as I stated to Mr. Osborn, we are ready to adopt the legal rates with all neighboring roads, unreasonably low as the legal tariff on lumber is, and divide the through rates, on the same basis as that agreed on with the Chicago and Northwestern Railway Company, or any other fair basis.

With regard to the last portion of your letter, I would say that we hear no complaints from shippers because of our demanding pre-payment. We do not demand pre-payment, nor do we now decline to pay advance charges on freight coming from other roads. Our agents at junction points all understand this.

As lumber is the principle commodity passing from one road to another, about which any question about freights can arise, I will explain our present mode of doing that business.

On all lumber passing between stations on the Chicago and Northwestern road and ours, the legal rates are strictly in force, and the two companies are dividing on a satisfactory basis.

All lumber coming on to our road from the West Wisconsin Railroad, or Wisconsin Valley road, is taken by us, whatever charges there may be upon it, and forwarded to destination, at legal rates for the distance we carry it.

Yours, truly,

JOHN W. HOYT, Esq.,

Railroad Commissioner.

S. S. MERRILL,
General Manager.

M. Pedrick to Commissioner Hoyt.

RIPON, July 28, 1875.

DEAR SIR: Have you ascertained any thing further in reference to what the West Wisconsin Railroad Company is going to do about carrying lumber under the law?

I have not been to Fairchild since you wrote to me that the president of the road had agreed to see that my case was attended to; but my foreman asked for cars, and at my last advice had not been able to get any. I go to Fairchild to-day; please write me there. Yours, very respectfully,

J. W. HOYT, Commissioner.

Commissioner Hoyt, in reply.

M. PEDRICK.

OFFICE OF RAILROAD COMMISSIONER,

MADISON, July 30, 1875.

DEAR SIR:-Replying to your letter of the 28th, this moment

received, I have to say:

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