Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-09-10
4 WAR OF RATES.
1t Seems TO be Imminent the East ern
Trunk Lines-The Causes that Have Led
to the Fuss-The Vanderbilt and Compe-
ting Lines at Loggerheads.
Especial Telegram to the Globe. |

Especial Telegram to the Globe.
New YORK, Sept. 9.-The sudden end
ing of the meeting of the railroad mana
gers at Commissioner Fink's Office was
surprise to every one who is interested in
railroad affairs. Charges of rate cutting
had been made against certain roads which
had been working under agreements made
in February and May last. It was pub
licly announced that no specific charges
were made against any particular road.
Then this statement was modified by the
assertion that the cutting was being done
by the connections of the Erie & Pennsyl-
vania roads on southwestern business. The
renewal Of the agreement to maintain
rates, and a promise to effect a
perfection of the pool system
in the west was announced
as result of a meeting more stormy than
any yet held. This result was generally
looked upon as an evidence of the inabili-
ty of the railroad managers to prevent
rate cutting. It was also viewed by bust
ness men and the outside world as means
of delay adopted to give Commissioner
Fink one more opportunity to try and
perfect his pet scheme, which has thus far
failed of Its purpose. That no faith was
placed in the often signed and as often
broken agreement was indicated by re-
port current in Wall street and on the
floor of the Exchange to-day to
the effect that agents of the
Vanderbilt system had been
instructed to take freights at whatever
rates could be obtained regardless of
schedule. President Rutter, of the Gen.
trail, and President Newell, of the Lake
Shore, both deny that any such instruo-
tions have been issued, or that any such
policy is to be pursued. Despite these de-
malls railroad men generally believe a
railroad rate war is imminent, and that
in this war the Vanderbilt roads, which
have been for 80 long time on the de-
fensive, will assume the aggressive. A
gentleman who is in Mr.. W. H.Vanderbilt's
confidence said to-day: eff Mr.. Vanderbilt
was still president of the Central
I know he would have begun
war of rates month ago;
he would have been so mad at the viola
tion of solemn contract by his rivals"
Another gentleman said, in referring to
the result of the recent meeting: sit is
| case of kiss and make up. It's like
lovers quarrel, that's bound to break
anew. A clever cartoonist could we'll de-
pict the situation with two parties en-
bracing, representing the Central and
Erie roads and the shippers and saying to
them Now go for him while I hold him.
The trouble is that Erie and the Lacka-
wanna, while pretending to hold a
schedule rate have been deliberately
cutting, and the Central has been
the sufferer. None of us charge
the Central and its connections,
unless possibly it be the Nickel Plate, with
heavy cut rates, and 1 don't believe the
Nickel Plate has done it. The Central
will not stand the cutting in its own terri
tory, and will, I believe, make war to the
knife. There IS so much competition that
the railroads are dissatisfied with the per
centages that are awarded. They growI at
being obliged to carry freight in excess of
their percentages, and then dealing out
money actually earned to other roads in
the pool who havn't carried up to their
percentages. To try and remedy this
trouble the system of diverting freights
was adopted. Shippers also growl about
this system, and their dissatisfaction
takes practical form in the institution of
the suits, the particulars of which have al
ready been published. The true inward
| ness of this dissatisfaction is, however,
that shippers are not allowed rebates on
diverted freights they would have received
had the freight been shipped as ordered.
That is, the shipper pays schedule rate to
road so that on the surface the road is
to return check for from 10 to as high
as so per cent of the amount paid return
ed to him. The road that is actually carry
ing his freight won't allow
the rebate, and there is trouble
at once. Lackawanna is in as a
pool. The West Shore will be ready for
business in short time. In speaking of
the results of the meeting which ende
derbilt roads said the renewal of the agree
ment was one more effort, and apparently
determined one, to maintain rates. If
the frost held off sufficiently long to en-
able the crop to be harvested in corn with
out injury there would be plenty of freight
for all and no necessity for war. If the
crop failed or frost came there would be a
shortage of freight and general scramble
by each road to get what it could
emitting rates. The traffic man
dSSI VI pIOhlH6ut WSStcru
road who would not permit the use of his
name advanced the same opinions as those
expressed above. In addition he said:
"The war is surely coming, and we in the
west are not responsible for it. Wea are at
the mercy of trunk lines, and if we were
the only ones at fault they would simply
grapple US by the throat and put an end
to cutting. The trouble is among the big
fellows who are quarreling among them
selves, and two of them, at least, are cut
ting right and left, utterly regardless of
their solemn agreement. I don't be-
lieve there Is heavy shipper
in the west who has paid full
schedule rates for his freights for months,
if he has at any time since the pool was
formed. I know it has been the case with
some, but can't prove it for the work has
all been done sub rosa. 1t is safe to pre-
dict war and lively one, and it is more
liable to come in weeks than in months.
Il NesV Lime.
CHICAGO, Sept 9.-The Chicago d North