Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1888-02-08
aailg gress and 9akotaiaa
why RATES ARE BEING CUT.
Enljghtment by the Omnha Republican,
Upon the Freight Kate War.

EniyEhtulcu Dy the Omnna hSepuoticau
Upon the Freight Rate War.
The action of the Milwaukee g. st.
Paul road in reducing freight rates from
Omaha east to q basis OF 80 cents, first
class, has produced q war compared with
which oil other wars were mere skirm-
ishes. When the Burlington learned that
the St. Paul had carried out it's threat
of meeting the Burlington & North
.ern's cuts 1t came boldly to b front and
made corresponding low rates from Kan
sas City end all other Missouri river
points. By this action the southwest
ern, western aud northwestern assoeia-
tions became implicated. Now the two
chairman Messrs. Midgley amt Falthorn
have issued notices authorizing all lines
in the association TO join In the fight.
The new rates we're then put IN effect
by all the llnes except the Chicago d
Northwestern. The latter delIberrted
whether to adopt such r%uinously low
rates or not. and for the present has
gone entirely ont OF competitive
business. The Rock Island does not
propose to act in concert with the other
roads, bat has reduced it's rates to as
low figures as charged by sny of its com
pstitors, and not only means to meet
any rates made by competing lines. but
will apply such rates on all traffic from
ell points in Iowa and on branch lines.
About noon Saturday the Milwaukee &
St. Peul exploded o bomb by giving
notice that, owing to the continued cut
ting of rates from st. Paul by the Min
neseta IL Northwestern, it had r dnced
the rates from Eastern through points
and from Chicago to st. Paul and Mn
neapolis as follows, subject to the
eastern officials classification: First
class, 80 cents; second, 26 cents; third,
20 cents;foHrth, 141s oents;ffth,i2 cents;
and sixth class 8 cents. These rates
we're also promptly met by all the north
western lines except the Chicago &
Northwestern and the Rock Island
Still later another sensation was caused
by the announcement that the Miiwau-
kee & st. Paul had made a SILL further
reduction in the rates from Kansas City,
Omaha, Council Bluffs, and all other
Burlington had been fund quoting
and Council Bluffs than those pro.
malgated in the morning. The rates
Last adopted By the St. Paul from ell
Missouri river points to Chicago are as
follows: First class. 28 cents; second
33 cents; third, "a cents; fourth 10 centa
and fifth, ID cents. These rates will nc
doubt also be met by all other Missouri
river roads, with the probable exception
of the North western. This ended the
battle for the day, but the combatants
are sleeping on their arms" and the in
dications point to further reductions,
Some OF the managers think that by
forcing rates down to rock bottom al
once the conflict can be ended IN o month
while others predict that it can moi
possibly be settled in less thin three
months.
A prominent official of the Milwaukee
& St. Paul. who was interviewed
regarding the situation, said his
company had always taken the potion
that it would follow in the west the
policy of the Chicago, Burlington &
Quincy IN the northwest. The lattel
road had heretofore undertaken to be
Irresponsible for tho maintenance o
rates by the Chicago, Burlington |
Northern, and SO far as known no chang
had taken place in the eontrac
governing the relation of the tw'
companies. which had deprived III
Chicago, Burlington 81 Quincy of th
power of DUNG now what 1t had don
heretofore. The contract did not de
prive it of its power ever west born
. rates; with which the present situation
had most to do. The Chieago, Bnrllng
ton & Quincy, while it's notice was pend
ing-and q meeting had been called {
CONSIDER the same and determine whethe
lsomething could not be done to seour
harmony-privately made an arrange
J. ~ - o. r,snA - ND -~~ y xk1 ---
with any of the eastern lines, and mad
contraots for west bound business at
through rate which was on first clse.
New York to st. Paul, 85 cents per 10
pounds less than the rates IN force b
the other lines with which it was aaso
riated. The st. Paul company, nc
having any prorating arrangement
found itself entirely out of the bushes
unless it reduced is rates from Uhieak
to st. Paul TO such q figure as would re
duce the through rate by it's line to 9
lcents--the same as made by the Chicago
burlington & Quincy. The openin
of the 1900 line" could hardl
be urged at present at a reaso
for the reduction of th
q through rates, because it is not yet in
condition to do business successfull,
Even if it was it could not Justify Cd
Chicago. Burlington & Quincy's oonrs
In adopting means Of meeting such con
petition regardless of other lines equal
ly Interested which would have bee
quite ready to cooperate in mutul
proteotion. The object was plainly
n obtain q short-livsd advantage by bein
frat In the field, and to this end it pc
iected its arrangements while still
member OF the association and privatel
solicited business at the rates il ha
determined to put into effect witho,
!. notice to the other lines. The putin
T. into effect at Council Bluffs and KsnsI
City OF rates made on the same bias
as the Burlington rates to and from s
Paul was in accordance with the Otter
announced policy of the st. Paul CON
: pany to treat the Chicago, Burlingtc
4 Quincy's territory as the Burlingtc
treats the st. Paul territory. 1t do
not mean, the gentleman said, that I'll
Council Bluffs rate mast necessarily ]
o prorate Of the st. Paul rate, for cond
tions may force q lower rate at 81. Pa
than need be put in at Council Blnf
and yet deal fairly with Council Blni
. traffic; but it does mean that the Chic
60, Burlington & Quincy cannot do !
will regardless Of other lines on Nortl
western business and hold them bcul
as to western business. The stress
competition by outside lines on st. Pa
business is as great OF one line as {