Omaha daily bee., 1889-09-21
REDUCE THE DIFFERENTIAL.
Chairman Walkers Dictum in the
Case of Salt.
A HAlR-sPRINe ApJU srMENr.
The Rate Friction Minifosts itself in
Two Places-rapiilion's Two
Priccs-As to Mr..
Braistcd's Rags.
A Delicate Adjustmout.

| n Delicate Adjustment
CHICAGO, Sept. 90, Especial Telegram to
| The BEE. The long existing friction be-
tween lines east and west bound from Chi
| cago aud st. Louis broke out in two places
to-day. AS illustrative of the hair-spring
| adjustment of rates among the lines the fol.
lowing decision made to-day by Chairman
| Walker, of the Interstate Commerce Rail-
| way association, is extremely interestingly
"At a meeting of the Western Freight as.
sociation on July IL, the question of read
justment Of the existing difforential upon
| shipments of salt from Chicago and st.
Louis to Missouri river points
and beyond was considered, and
was referred to the managers of the Inter-
State Commerce Railway association. AT o
meeting of the managers on July Is the sub
| ject was discussed aud q difference of opin-
| ion was developed which resulted in disa-
greement aud the matter was referred to
Chairman Walker with instructions to inves-
| tigatc, and with full power to say what the
difference shall be in the rates between the
| two points. A notice of hearing was issued
for July 30, at which time several of the
| lines were present and presented their
claims. Absent lines were requested to
make statements in writing. After all
the parties Interested had been heard from,
considerable difference was found in the
statements respecting matters of fact, and.
by circular dated August 10, precise infor-
nation was requested upon various subjects
that appeared to be involved In the coDsid-
Grafton of the questions raised. Responses
have been received from the various lines
and the subject has been carefully consid-
cred in the light of all facts ascertained and
arguments presented. The situation in brief
is this:
1.-The price of salt at the Saginaw district
is established by an association of producers
and is now SO cents per barrel. AT points
west the price therefore is 80 cents plus the
freight. Since July last the rates from Sag
inaw have been 20 cents to Chicago and 30
cents to St LOUIS, making the price of salt
to Chicago az cents and at st. Louis 81 cents.
| The rates from st. Louis to the Missouri
river are 80 cents from Chicago ana 81 cents
from st. Louis, making the price at Missouri
river points 81 IL via Chicago and Sl.06 VIA
| ST. LOUIS. In the past the rates have been
so adjusted that the price has been the same
upon salt via both gatcways. The diiTeren-
tials upon salt and hard coal have
| been treated as variable and subject
to read djustment from time to time for the
purpose of equalization. The present in
equality arose from reduction made by the
lines between Saginaw and ST. Louis, the
ostensible reason for which was in order to
| bring about the same rate differences at st.
| Louis and Chicago in respect TO Michigan
| salt that had existed for some time IN respect
l
| cents to Chicago and 40 cents to st. Louis,
| or difference of 10 cents, to which the
present rates of 20 and 30 cents, rates respect
| fully from the Saginaw district, correspond.
| The present west bound differential
| of Is cents between Chicago and st. Louis
| applied to the price of Saginaw at those
| cities produces the result that has been de-
| scribed. St. Louis agents selling Michigan
salt are Offering il at western points at a
price of cents less than Chicago agents
| make on the same article For example it
| is shown that salt is offered for sale at
| Papillion, Neb., via St. Louis, at SLIP, and
| via Chicago at Sl,l7 Similar proof is made
| in respect to other points in Nebraska,
| Kansas, Iowa and northern Missouri. II is
| obvious that the price at the point of delivery
| would be equalized by reduction of the ex-
| istng differential from - cents to 10 cents.
| "After full examination of the subject in
| the light of all the reasons adduced by the
| st. Louis lines, am unable to perceive any
| good reason why this should not be done.
The territory in Missouri and Kansas to
| which a natural route lies through St Louis
has of late been largely supplied by salt
| from the Hutchinson district This fact
| explains in great measure the small ship
ments now being made from st. Louis TO
| such points; the st. LOUIS lines desire to in
| crease still further the extent of territory in
| which the Hutchinson salt can be sold, and
| proceedings are now pend ng to that end.
An advance in the rate from st. Louis west
bound will be step in the direction desired
| by them.
1t is, therefore, awarded that the differ
| entail in question should be reduced cents,
| or from Is cents TO 10 cents. This should be
effected by an advance of cents in the ex-
isting rate from st. Louis TO the
| points in question, corresponding to the re-
| duction which was recently made in the rates
| to St. Louis upon the lines east of the
| Mississippi river"
The other instance where friction caused
sparks and which, according to Chi
cago railroad officials must be Immediately
| adjusted or it will cause disturbance en-.
| tirely out of proportion to the original cause,
| was the recent quoting of 80 cent rate in
stead of 80 cent rate by the st. Louis COM
mitte, in other words, ignoring Of
the fundamental basis of making rates
in central traffic territory the
percentage principle The Chicago
| committee took hold of the matter today
and passed the following resolutions:
Resolved, That the tariff dated August 27,
| and taking effect September 10, on rags and
| paper stock issued by Il. w. Braisted, char
man of the ST. Louis committee, by which
| the classification of the articles named is re-
duced without authority or action of the
| proper committee, therefore be it
Resolved, That the tariff be referred 10
Chairman Blanchard with a request that the
matter be investigated promptly and
| this committee be informed why such
| action OF the st. LOUIS committee be
| permitted when in direct violation of all
| rules and regulations of both the Central
| Traffic and Trunk Lines associations. and,
| be 1t
Resolved, That pending this investigation
and while awaiting information on this SUBJ
! ject the Chicago committee take no action
either independently or otherwise.