Omaha daily bee., 1889-08-20
ROADS MEETING THE RATE.
The Burlington g. Northern Not
Alone In It's Reduction.
A MULTIPLICATION IN ADVANCE
The Proposition Prepared For the
Consideration OF the Western
.s Freight Association Now
of No Consequences.
Not Alone In the Reduction.

CHICAGO, August 19.-TSpecal Telegram
to THE BEE. The Wisconsin Central aud
Chicago, st. Paul & Kansas City to-day met
the Burlington Il Northern cut from 60 TO 10
cents on the Chicago-St. Paul proposition OF
the through rate. The action of these two
roads nulifes in advance proportion which
the Northwestern and St. Paul were intend =
ing to present, and perhaps still will at to-
morrow mornings meeting of the Western
Freight association. The proposition is that
the other St. Paul roads should ignore the
l5 cent rate, abolish the low commodity tariff
now in effect between Chicago and st. Paul,
and lower the present 60-cent local basis to
q so or As cent basis. The proposition was
formulated by Traffic Manager Wicker, Of
the Northwestern, and stood an excellent
chance of being adopted had the Wisconsin
Central and Chicago, st. Paul & Kansas
City not complicated matters by giving no.
tce that they would meet the Burlington &
Northern rate. AS matters stand, no Chi
cago shipper or railroad Is satisfied except
the Burlington q Northern. Cold chils of
apprehension are running up and down the
backs of railroad officials of Missouri river
lines, as they see the imminent danger of the
wholesale reduction being carried to Mis-
souri, river points. All the three roads
their tariffs that the long and
short haul clause of the Interstate
commerce act is ignored The Burlington
& Northern has, however, recognized the
imposslbility of carrying out this idea at
junction points and has applied the 15-cent
rate at Lacrosse and Wlnona. In like man
ner the Chicago, st. Paul ~ Kansas City
will apply the l5-cent rate to Marshalltown
and threatens to apply it at st. Joseph and
Kansas City. In any event, there being no
L.,
town, it is manifestly impossible to apply
the 15-cenu rate there, 3l4 miles
from Chicago, and maintain the
75-cent local and 6O-cent proportional
on the Chicago, St. Paul & Kansas City.
The Chicago freight bureau. representing
the board of trade and the vast majority of
Chicago's business, is the most powerful
factor in the west in influencing rates. Com
| missioner Iglehart, of the bureau, said to
day to your correspondent: 1--WE don't like
the outlook, and it must be changed in some
way, probably by reduction in the local
basis from 60 to 30 or 40 cents. Uader the
operation of the 15-cent proportional rate,
which went into effect this morning
on the Burlington 81 Northern, New York,
Boston and Philadelphia merchants can take
away the whole northwestern trade from u.s.
The commodity tariff doesn't help us much,
as il applies only on car lots, and the conse-
queuce IS that seaboard merchants will have
the call in the northwest until we can get the
rates rearranged. 1t is all rot for the roads
to claim that Chicago is fairly treated. We
Will probably make our fight on the illegality
of the Burlington 81 Northern l5-ccnt rate.
How can it be a proportional rate when
not quoted in connection with a
through rate! The Burlington g. North
ern now has practically three
ra:es in effect-the 60-cent local rate,
the commodity rate and the 15-cent rate.
/ don't believe for minute that the inter
state commerce commission will say the new
rate Is legal. 1t is too bad this demorializa-
tion has sprung up just when the roads
would begin making their biggest earnings.
1t looks as though it would spread to the
Missouri river and, if it does, there will be
music in the air. We will then have a 15-
cent open local rate to ST. Paul instead of
The present 60 cent rate.'
Chairman Walker, of the Interstate Rail
way association, is non-commitJal on the
subject, except that he ventured the opinion
that the outlook was not remarkably bright.
He drew some consolation from the fact that
some heroic treatment sometimes cures, and
a settlement of the whole Northwestern
complication might come from the reduction.