Omaha daily bee., 1889-08-23
The RAILROADS ASTOUNDED.
The Interstate Law Was Not Made
to Be Broken.
PARALYzEo BY JUDGE COOLEY
Local Rate of Fifteen Cents a Hun.
dred Goes Into Effect To-Day
Between Chicago and
st. Paul.
CONSERVATION In the Camp.

to THE BEE. The mighty hand of Judge
Cooley, chairman of the Interstate COM
merce commission descended to-day on the
turbulent northwestern roads and smote
them sorely. In trying to avoid the blow
the roads fell from Scylla into Charybdis,
the net result being that a local rate of Is
cents q hundred first class will be in effect
tomorrow morning between Chicago and
st. Paul, The cut of the Burlington &
Northern from 60 to 10 cents, on a proportion
of the through rate from Chicago to St. Paul,
was the most sensational cut of the year, but
as the local rate was kept at GO cents, the
earnings would not be largely decreased, as
but little through traffic went by rail to St.
Paul. The reduction of the local rate. and,
for that matter, of the through rate also, to
a 15-cent basis, means reduction in gross
freight earnings of 15 per cent AS already
mentioned in these dispatches, heroic
seemed the only cure for the complicated
northwestern situation, and the 15cent oil
round rate is morally certain to kill or cure.
The morning session of the Western
Freight association witnessed only u vain
wrangle over the question. and an adjourn
ment was taken until o'clock to give Chair
man Falthborn an opportunity to confer
with Judge Cooley relative to the situation.
The result was read to the association by the
chairman and proved the biggest bombshell
ever exploded in an American railroad meet
ing. Judge Cooley's opinion was as follows:
II. The tariff the Chicago, Burlington g.
Northern has put in force is nothing but a
local tariff. 1t is not a joint tariff ana moth
ing can be "a joint tariff in which the lines do
not unite; therefore every time the charge
on local consignment is different from the
rates named in ssd tariff it is a breach fthe
law, each consignment being separate
offense.
SO Even If the rates were otherwise
legal the great disparity between them and
the socalled local rates would of itself rem.
der them illegal, and this applies whether
the fourth section (the long and short haul
clause) is ignored or not.
''3. If this is persisted in, the remedy will
be for the commission to reduce the local
rates to the basis viii h has been estab-
lished. The roads must expect that
remedy will be applied, ana that speedily
"As the commission announces rates, then
its rates hold good until changed by themn
4. The commission prefers that the roads
deal with this question themselves, but can
not tolerate the present condition OF things,
and prompt action must be had. IL is pub
lie scandal and disgrace, and will If it is con-
tinued, reflect upon the commission AS the
action taken is invalid, no ten days notice Is
necessary.
The members of the association were COM
pletely stunned by the report. General
Manager Egan, of the Chicago, st. Paul &
Kansas City, was the first TO recover. Rising
to his feet he SAID:
''Mr. Chairman, I want the record of the
Chicago, ST. Paul & Kansas City TO be per-
fectly clear in this matter. In the first
place would like to ask if the Chicago, ST.
Paul 81 Kansas City has not voted all the
time for restoration of rates and been sim
ply forced to follow in meeting the new
ratesi
The chairman said the record of the Chi
cago, st. Paul & Kansas City was perfectly
clear and that 1t could in no sense be called
a demoralizer.
"Then," continued Mr. Egan, 1--WE propose
to keep our record as clear legally. In view
of the decision of Judge Cooley there is but
one of two things for us to do, either to go
entirely out of business, not moving pound
of freight, or to make a legal rate as low as
any of our competitors. We choose the lat
will reduce the 60 cent local rate from Chi
cago to ST. Paul to a 15 cent basis In other
words, we will conform exactly to Judge
Cooley's decision"
This notice fairly electrified the MEMBERS
all of them clamoring to be heard. Before
another road could give notice of reduction.
however, one of the cooler heads near the
chairman secured his attention and made
motion to adjourn. The motion was declared
carried and the disorderly meeting brought
to close. 1t lasted barely twenty minutes,
but seldom or never IN railroad history were
twenty minutes so fraught with weighty re-
suits.
What the outcome will be no man can tell
with certainty. The 15-cent local rate goes
into effect in the morning, and as it is per-
fectly legal must remain in force at least ten
days.
In view of the position taken by the Bur-
lingJon IL Northern, it is extremely doubtful
if there will be an immediate raise in rates.
The whole difficulty lies in the position of
that road. II made the 15-cent rate origin
ally to meet Canadian Pacific and water
composition in, in the .s northwest ,n , It
ness as its local business does not
begin to pay expenses. OF course
the other st. Paul roads, with the possible
exception of the Rock Island, must meet the
10 cent rate, consequently the Burlington &
Northern must give up entirely its share of
the through business or compel the other
roads to keep in effect the 10 cent rate by itself
refusing to yield. This COURSE, however.
means bankruptcy for all the roads, and it is
reasonab BILE to suppose that they will club to-
gether and buy up the Burlington & North
ern sooner than TO allow themselves to be
slowly bled to death.
Another phase of the question also men,
toned in these dispatches is that the making
Of the 10 cent local rate compels its adop
tion, with slight advance at the Missouri
river gateways. This means that the present
75 cent local rate TO Kansas City, st. Joseph,
etc., must Oe reQuceu 10 ABOUT ~ Genus. vi
course this is contingent on the permanency
of the 15 cent rate to st. Paul and Mime
apolis Said the president OF one of the
granger roads tonight:
"There Is no possibility of magnifying the
disasters which will overtake all the western
roads If the 10 cent rate to st. Paul is contin-
ued. 1t must be advanced, or those of us
who do not write receiver before our names
will be out of job. The Burlington & North
| ern makes the problem knotty one They
must have through tariff or fare to pay oper
| ating expenses. 1t apparently can not get
| through traffic except at the Is cent rate.
| That rate means death not only TO the rest
| of us, but also to the Burlington a. Northern.
| We must lind some way out of 1t, and raise
| the rate 1 confess the only way see is to
| buy up the Burlington 81 Northern, or to
| persuade the Canadian Pacific and water
| lines to revise their rates The close of
| navigation will not help u.s. as the l5 cent
| rate was made originally to meet the Cana
| dian Pacific and 500 rates"
Chairman Cooley was seen at the Palmer
| house in the evening and talked very freely
| on the subject. Said he:
"The officials of the northwestern roads
| are acting like parcel of fools. or course
| the Canadian Pacific competition has eaten
| deeply into their earnings but that Is no
| reason why illegal tariffs should be made To
meet the situation. The roads must seek
| relief through congress-, the only body which
| can give il TO them. / appreciate the con-
1 full a.A xullh hal tha,,