Omaha daily bee., 1888-02-05
THE END A LONG WAY Off.
Chairman Midgeleys Views On the
Present Freight War.
A BITTER STRUGGLE PREDICTED.
Tho Chicago, Burlington q Quincy
and ~. Paul Roads the Principal
COmbatants-Inter
Points Benefited.


CHICAGO, Feb. 4-tSpecial Telegram TO
the BEE. There is little doubt that the
present rate war will be long and desper-
ate one" said Chairman Mdgeley, of the
Southwestern Railroad association, to-day
"No propositions of settlement have been
made, nor would IL be of any use to make
any at the present time"
"Wherc will this fight end.'
"There is no telling A fight Of this char
acter is now an entirely different matter
from what it was a few years ago. Five
years since there were ten. junction points in
Kansas The Ten junction association was
organized at that time. Now there are 200
junction points. The railroad ex-
tensions in the west and south
west have been 80 great that a
fight like the one now in progress will be far
reaching in its effects. Owing to the relative
geographical situations of st. Paul, Omaha
and Kansas City and the operations of the
Interstate commerce law, this fight will de-
moralize all rates and must involve the en-
tire northwest, as well as the west and
southwest"
Mr.. Midgely evidently regards the sit
tatiop as serious and expects that d bitter
fight will be made. He admitted that the
railroads would lose heavily and thereby con
frmed the belief that several roads involved
in the fight will suffer so that they cannot
pay dividends on their share capital. The
fight was started by the ST. Paul road yestcr-
day when new tariff reducing rates on all
classes of freight from Chicago to Omaha,
Council Bluffs, Atchison, LeavenwOrth and
Kansos City about 40 per cent was an
nounced. This cut was met, as was the
second cut Of 2 cents more.
The history of the fight is briefly as fol
lows: The Chicago, Burlington & Quincy has
been held responsible for the maintenance OF
rates bv the Chicago, Burlington IL North
ern. The latter road did not join the associa-
tOn but the officers OF the former undertook
70 be responsible for it, On that basis the as
sociation was formed. Recently the Chicago,
Burlington & Quincy people withdrew their
guaranty for the Chicago, Buringtop> Il
Northern road. So far as is known there has
been no change in the relations OF the two
roads, which are in large measure controlled
by the same stockholders. The st. Paul road
has held that it should follow in the west the
policy of the Chicago, Burlington II Quincy
in the northwest. If the Chicago, Burling-
ton Il Northern rates are reduced in the
northwest the st. Paul must reduce its rates
in the west, The st. Paul is the main line in
the northwest.
." It's line to Omaha, while a direct one, has
not the tributaries of others and doesn't do a
heavy business. The Chicago, Burlington &
Quincy privately made arrangement to pro
rate to and from the east with any Of the
western lines, and went about to contract
{ business westbound at through rate, which
was on first class from New York to ST Paul
4 35 cents less than the rates in force by other
lines with which they are associated. The
ST. Paul found itself forced out Of business
unless it reduced its rates from Chicago to
St. Paul. Putting into effect IL Council
Bluffs and Kansas City schedule of rates
made on the same basis as the Chicago,
Burlington s. Quincy rates TO st. Paul was
; in accordance with the often announced pol
icy of the ST. Paul company-to treat the
3 Chicago, burlington & Quincy territory as
I, the Chicago, Burlington & Quincy treats tho
ST. Paul territory. The other lines were
necessarily drawn into the reduction. The
fight is an interesting and necessarily bitter
one. 1t involves all western and southern
points. The interstate commerce law makes
all through rates also affect intermediate
rates and there is no telling where the fight
will end.