Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1874-12-18
The Railroad War.

of Chicago, finding it impossible to
coax the Baltimore a Ohio railroad
into their conspiracy to fleece the
public, have now set out to crush it.,
if possible. The contest is causing
much excitement in railroad and bu-
siness circles. The Chicago Tribune
of the 18th says:
The main object of forming the
combination was to get the Baltl-
more & Ohio in it, because by throw
ing out its branches all over the west,
it was fast becoming a formidable ri
val to the New York lines. 1t was
well-known fact that the Baltimore
q Ohio had more means than all the
New York roads combined, and that
it could afford to carry freights at
such low rates, especially to Balti-
more, as to seriously cripple New
York and her roads. As this road,
however, could not be induced to
come in, the Grand Trunk was offer
ed such inducements that it finally
consented to join the combination.
The Baltimore and Ohio was virtual
ly a party to the agreement. 1t had
agreed to every measure OF the com
bination. What it disliked was high
rates to Baltimore. This was the on
w point which the Baltimore u Ohio
would not accede to. The managers
claimed that they had built the Chi
cago division to build up Baltimore,
and not to make money. All the
stock of this road being owned by
Baltimoreans, they cared more Tor
the greatness Of their city than for
dividends.
The New York roads could not al
low the Baltimore q Ohio to remain
master of the situation without IA sim
Gle effort. 1t was evident that this
road was striving to divert the ives
tern trade away from New York to
Baltimore. This calamity to New
York had to be averted, and the on
" alternative for the New Y ork roads
was to wage relentless war upon this
one, and force it to terms. AS the
matter now stands, the people OF Chi
cago will, for time at least, have
cheap rates to the east. The rates
adopted by the combination are rs
low as those of last summer, when
there was considerable competition
from the various steamboat-lines, and
there is probability that they will
be made still lower before the fight
is over
The Baltimore & Ohio announced
Yesterday that its rates will, for the
present, be the same as those of the
combination. This action has caused
considerable surprise, as 1t was gen
orally expected that this road would
make its rates to Baltimore still low
er than the combination. BY this it
must, however, not be inferred that
the Baltimore & Ohio has given up
the fight. On the contrary, it is well
understood that this road now in
tends to inaugurate a different kind
of warfare. By the terms of the Sar-
atoga agreement, the roads that sign
ed it are not allowed to make draw
backs or rebates on freights, but the
Baltimore & Ohio being Independent,
can do as it pleases, although it had
promised that, in case 1t should be
let alone by the combination, it would
not make rebates or drawbacks on
freights. While the tariff of this
road is apparently the same now as
that of the combination, still it is well
understood that such rebates will be
made on Baltimore rates as to leave
the Baltimore & Ohio still in the most
favorable position. What the com
bined roads will now do in regard to
this matter is still mystery. Some
thing has to be done to meet the ad-
versary, but whether it will be a
modification of the rule prohibiting
rebates, or whether the tariff will be
made still lower, will be developed
in day or two.
Vanderbilt and Jewett, two of the
leaders of the Saratoga combination
have just encountered another enemy,
which may, in great measure, help
the Baltimore & Ohio to carry off
the victory. This new enemy is the
Acknowledgement of New York, who
has just brought suit against the
New York Central railroads for hav-
ing entered into a combination con-
trary to the laws of the State of New
York. The managers of these roads,
however, claim that this suit will not
affect the combination in the least.
The law under which the Attorney
General brought his suit was one
which prohibits combinations for the
purpose of dividing their earnings.
But the present combination was not
for the purpose of dividing or com
bining anything. In fact, it is not a
combination at all; it is merely a con
federation of various roads for the
purpose of carrying out certain re-
forms and to maintain uniform rates.