, 1888-08-29
Discrimination in Rates.

CHICAGO, Aug. 28.-Not since the in
terstate commerce act went into effect has
anything been done by the railroads that
caused SO much excitement and ill-feeling
among Chicago merchants as the recent
action of the transcontinental lines in
making rates from Chicago to the Pacific
coast about twice as high as the rates
from New York. The merchants of Chi
cago fail to comprehend why the Chicago
roads should consent to become parties to
an arrangement that discriminates so out
r%ageously against Chicago's interests and
Is calculated to prevent Chicago from
competing with the East for Pacific coast
traffic. Even the trunk line managers,
who have all the advantages under the
new tariff, have emphatically refused to
Jon in the new through rates on the
ground that they are contrary to the in
t%erstate law, and that they could not
afford to Join in a tariff that makes the
rate from interior points in their territory
to the Pacific coast much higher than
rates from seabOard points.
The most energetic protests against the
adoption of the new tariff have been sub
mltted to the railroad managers here by
John V. Farwell & Co. and many other
prominent firms. Some of them declare
that they will refuse to ship any kind of
freight by lines that accept the new Califor-
MIA tariff, and these threats are having
the desired effect, and many of the lead
ing Western roads declare that Midgley
has acted without authority in approving
the new tariff.
Three of the roads wired Mr.. Midgley
and Chairman Leeds of the Transconti-
mental Association Saturday evening that
they repudlate the new rates and would
not accept them unless revised so as to
give Chicago a fair show.
A reply was received from Chairman
Leeds yesterday saying that the tariff had
been revised and that the rates on COM
modities produced in Chicago would be
made the same as from New York. This
list, however, comprises only about twenty
five articles, while there are thirty pages
of commodities on the tariff from New
York on which rates are not more than
one half of the rates from Chicago.
Consequently the concession made by the
trans continental roads does not better the
situation.
The leading merchants here declare
that they will not stand the discrimination
and that they will not go before the inter
state commission with their grievances,
but bring suit in the United States courts
against every road that charges discrimin-
atIng and unlawful rates.
The indications are that all the roads
between Chicago and the Missouri river
will repudiate Mr.. Midgley's strange ac-
ton, and will initiate the example of the
trunk lines and require from the tr%anscon-
t%inental roads full local rates between
Chicago and the Missouri river on over
land traffic from New York. Mr.. Mid
gley has sent a private communication to
the members of the Pacific Coast Associa-
ton in explanation of his action.
According to Mr.. Midgley explana-
ton Mr.. Blanchard. another member of
the committee, took decided grounds
against the discrimination tariff of the
Pacific coast roads. He advised that local
rates be charged to Chicago and st. Louis
and that no through bills of lading be
given unless the transcontinental lines
would establish tariffs in the way outlined
by the trunk lines.
Chicago people have nothing to do with
the personal quarrel between the trunk
lines and the transcontinental roads.
They simply demand fair and equitable
treatment and the protection of their in
~terests.