St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-02-23
FIERCE Is THE FIGHT.
Northern Pacific Cuts Freight and Passen-
ger Rates on East and West
bound Traffic,
But its Reductions are insignificant
Compared with Those Made
by Southern Lines.
The Atchfson d. Santa Fe Caught NJ
Little Game Which VIII Cost
Very Dearly.
Rae Cutting and us Effects.

II.
over ST. 40 and below that amount % per
cent A gentleman well posted in railroad
matters talking of the rate war SAID:
a. The public had no more concern with the
frun.cortinental lines nor any more control
over them than il has with or over private
persons il the conduct OF their business the
reckless behavior OF these lines in cutting
rates nevertheless would warrant protest
kuC The public has additional concern ana
control because all these lines are creatures
Of corporations which themselves are crea-
lures Of the public WILL and because the fed
eral constitution gives congress authority 10
regulate commerce among the several STAKES,
and therefore the raue-cutting not only war
rants protest, hut may speedily demand legls-
lative interference ii it is not reformed. =
legislative remedy certainly resides 10 some
extent in the states from which these cOrpO-
ratiOns hold their charters and TO q greater
extent in the United states by virtue ol the
authority Of congress. The rights OF snare
holders and bondnOlderS furnish in themselves
occasion enough for congress ana leSlsialufes
10 interfere. The consequences OF rate
cutting involve the passing Of dividends on
shares and the suspension of interest upon
bonds. and bondholdcTS and shareholders as
benefciaries under a trust created 10y the
charter are entitled 10 ask their iawGlYerS 10
protect them against such an abuse Of il by
the trustees. The experience Of the last five
years in rate-cutting, which reached climax
1875, has been 50 severe that tens Of thou
sands OF investors in railway stocks and bonds
view the renewal of IT with an Indignation
surprising any they have felt before. 1T IS
the distrust and confusion which rate-cutttng
introduces into all the business OF the COM
try that depends on transportation TO which
/ would mostly call attention-the detri-
mental
EFFECTS on MANUFACTURERS,
who bring the raw material TO their mills and
send the finished product 20 market by rail-
road; on agriculturaiists, in the market value
81 whose crops freight charges are q very
large element; on tTadcsnen in interior cities,
whose calculations for the season arc broken
I'D by sudden competitions 10 which they are
exposed by variations in freight rates 10 and
from the terminal points of the railroads.
The possible illustrations are innumerable.
Rate cutting on the railroads unmakes the
fortunes OF millions besides the shareholders
and bondhoders. 1t would be well to direct
special attention 10 the damage OF the gen
eral welfare Of our whole country, conse-
uuent upon the probable return Of American
railroad shares and bonds now held abroad.
When foreign holders see experience go Tor
nothing and reckless managers of American
railroad corporations in whose securities
they have invested now repeat a course
amply proved to be ruinous, il is reasonable
TO suppose that they will make haste to with
draw their capital and throw back their
holdings to an amount liable to be very dis
aStrous ut "a moment when II Will coincide
with the drain of gold out of the United
States. The innocent also will suffer. The
American railroad system will be discredited
abroad. Deplorable at any time, railroad
rate cutting at this time. in consideration Of
the condition Of the country, is more wicked
than many Ofienses which the law stamps
with the brand of criminality.
CUT TO $50 FIRsT-CLAss.
CHICAGO, Feb. 22.-The Santa Fe road
to-day issued instructions to all its agents
to give orders for rebate of $50 Oh the $50
tirst-claSS tickets, cut rate. and So on the
secOnd-clasS and Immigrant cut rate. The
same were quietly distributed this after
noon. The Burlington. Denver d. Rio
Grande, accidentally hearing OF this, imme-
diately issued orders making a tirst-class
open rate from the Missouri river 10 San
Francisco of $50 and $40 Second-class. 1t
is understood that the Union Pacific Off
GERS, who have been notified of this last re-
ductiOn in overland rates, will meet it
promptly.
SEEKING TO PROTECT.
CHICAGO, Feb. 22.-CommiSsiOner Midg-
ley of the Pacific Coast association left to-
day for New York for the purpose it is
stated, of comforting with Commissioner
Fink in regard to contining the cutting in
tranScontinental rates to the roads west of
the Missouri river.
THE SANTA FE DONE UP.
Special to the GLOBE.
CHICAGO, Feb. 22.-The transcOnti-
mental war was not as much talked of to-
day and Saturday. because the spectators
were all resting. The New York stock
exchange was closed to-day, and as stocks
could be neither advanced nor depressed by
news OF cuts in rates. they were being dis
cussed, but the war is going on all the
same. The Northern Pacific to-day made
a cut in freight rates on business to Port
land. Inasnuch as the other roads between
here and Omaha will not base their rates on
the cut of the transcOntinental roads these
latter can only make the cut by allowing
80 per cent. of their share of the rate to
Portland. The cut to-day is 80 per cent. on
business over $40 and % per cent. on bust
ness amounting to S140 or under. There
are large number of tIanscOntinental Off
GERS in town, among others Charles ). Tee
of ST. Paul, general passenger agent of the
Northern Pacific, the general traffic mana
ger OF the Central Pacific and the general
manager OF the AtchiSOn. Il expect
the rates, as they exist now, will
hold for a long while" said one
official. There is no meeting of the
TranscOntjnental pool called and should
there be, the officials are now so scattered
over the country thai it would take a fort
night to get them together. 1t is the gem
eral expression among railroad people that
passenger rates to San Francisco will not
again be as high as they were before the
break. This evening an important docu-
ment turned up, which uncOverS the At
chison's little game. 1t reads as follows:
To all Agents: You viii please issue rebate
orders, payable at destination, for $40 if
holding first-class tickets, and for SO if hold
ing second-class or emigrant tickets.
an Of ic
rate already made from $50 to $50, iirst-class
and from $25 to $40 emigrant. 1t was
Shrewd move, the circular having been
secretly issued and sent 10 all Offices through
out the country, but unfortunately for its
success, one of the notices happened to fall
into the hands of the enemy, and its effect
was neutraliZed by the vigorous employment
Of the telegraph and the making OF an open
rate without the rebate appendage, of $50 and
$50 from the Missouri river to California
This puts the Atchison in a rather awk-
ward place. for if it meets this open rate
and does not cancel its rebate order, it will
be forced to accept $40 hrst-claSs and SIS
second-claSs. OF course it will recall the
circular at once. The rates mentioned
above were made by the Burlington & Mis-
souri,, and the Denver 81 Rio Grande in con-
junction. The Union Pacific officials could
liut NC lSsclSu ny telegraph Tonight. out
VIII undoubtedly fall into line tomorrow.
AFFAIRS ON THE PACIFIC.
SAN FRANCISCO, Feb. 22.-No import
ant developments occurred in the railroad
war to-day. The strength of the fight is
now being concentrated on freights. The
Pacific Mail, it is stated, has engaged a
quantity of freight for New York at IS Der
ton. Reductions on railroads regular
schedule rates range from % to