Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-02-07
THE GRAIN BLOCKADE.
Prospect that 1T Wiu be Lifted by Re-
duttton Of Eastern Fretghts.
IChicapo Tribune1

Prospect that 1t HiiI be Lifted by Re-
duttton of Eastern Freights.
IChicago Tribune.l
1t Is almost certain now that the east
bound freight rates will be reduced about
March 1. The railroads are beginning
to see the necessit, of such action if they
mean to get portion of the grain stored
here. The talk that special arrangements
have been made with some of the ocean
lines to get rid of the 8 rain here is declared
to be untrue by the railroad officials, and
that under the present pooling arrangements
they could not make such special contracts
if they wanted to. The elevator men a'so
deny the reports that some of the Western
roads are paying them a portion of the
storage charges. These gentlemen say the
grain now in their warehouses is mostly held
for April, May and June delivery, and there
is not the least probability
that the grain will be
moved before that time, even if the rail-
roads should reduce their freight charges.
The prices of grain in this country wers 80
much higher than in Europe that, in spite
of the unusually low rates charged by the
ocean steamers, very little could be expected
at present. 1t is stated that large number
of steamers and vessels are lying at New
| York waiting for cargoes, but in spite Of
offering the most advantageous inducements
to shippers, they can get no loads. The
spectators who hold the grain here refuse
to let it 60 unless they can get their price,
and they calculate on an improvement in
the foreign markets by spring. There is q
general feeling, however, that they are mis-
| taken in this calculation, and that they will
| be finally compelled to accept even lower
| rates than are offered at present. Had it
not been for this determination on the part
| of the spectators to hold the grain the rail-
long ago, but as it 10, they
say, it would be useless to make the reduc-
ton, for the prices of grain would be ad-
| vanced about the same amount that the rail-
roads came down. The reason that the rail-
roads are at last talking about the necessity
of reduction in the freight rates is not 80
| much on account of their desire to relieve
the elevators, but because the Grand Trunk
will in few days be in position to infict
serious damage to the other roads as far as
the business now broug ht in by Western roads
| is concerned. As already stated, the Grand
| Trunk will not ask for share of the east
bound business from the Eastern pool lines
when its Chicago extension is completed. 1t
will continue to accept its regular portion
from the Michigan Central at Detroit the
same as heretofore. But the new line
known as the Chicago Il Grand Trunk will
be run entirely independent of the
main line, and solicit business on IFS own &C
count. It is generally admitted that this
| line, in order to get any Of the Western
business, will have to offer special induce
ments to shippers. To make it Improbable
for this line to contract business, the regular
pool lines will be compelled to make a heavy
reduction in their freight charges, even if
the opening of navigation was not 80 close
at hand. A heavy reduction in freight rates
by the railroads, together with the low rates
now charged by ocean steamers, will no
doubt have the effect of lifting the blockade
at this point, provided the spectators who
hold tho grain will cooperate with them, and
not run up the price of grain to prohibitory
fionres