Omaha daily bee., 1889-08-18
ATEs sLAsHsD 75 PER CENT.
Probability That 1t Will Extend to
Missouri River Lines.
BAD OUTLOOK FOR THE ROADS.
The Chicago, st. Paul u Kansas CITY
and Iowa Central Lines Give
Notice That They Will
Come Down.
Astonished the western Association.

CHICAGO, August 17-rSpecial Telegram
to THE BEE. The Chicago, Burlington 81
Northern gave notice in to.day's meeting of
the Western Freight association of the most
sweeping reduction in rates ever made by an
American railroad. 1t is an allaround re-
duction of 75 per cent in rates between Chi
cago and ST. Paul, the basis being changed
from 60 to 10 cents. Tho new basis will go
into effect Monday. General Freight Agent
Hamblln, of the Burlington & Northern,
read the following to the association and
submitted it, together with copy of the
new tariff
"rhe attempt to induce the central traffic
and trunk lines associations to join in plan
outlined in the resolutions unanimously
adopted by the presidents of all lines inter-
ested in traffic between Chicago and St. Paul
and Minneapolis has resulted in failure. The
aforesaid resolution was directed to your
sociation and is as follows
"'Resolved, That the lines interested in
the ST. Paul and Minneapolis traffic be re-
quested at once to open negotiations through
the northwestern division of the Western
Freight association with their eastern con-
nections, with view to making Joint
tariffs and rates between all points
reached by the Canadian and the
made by said Canadian and lake routes.
That, in the opinion of this committee, by
reason of lake and Canadian competition, a
disimilarity of circumstances and conditions
exists which justifies the meeting of said
lake and Canadian competition regardless Of
intermediate rates.
$50 large diversion of traffic has already
taken place that our company has suffered a
heavy ioss in common with some other roads
which have no lines to Lake Superior, nor
short cut to the national frontier. Under
these circumstances we must adopt one of
two plans: / = Retire completely
and permanently from all traffic
competition with the Canadian or
water lines. 2. Engage permanently in that
traffic at such rates as it will yield in compe-
tition with said Canadian and water routes.
We have prepared tariff in accordance with
the terms of our membership in your associ-
alton to enable us to meet outside competi-
ton at Minneapolis, Minnesota transfer,
st. Paul, Winona and Lacrosse, where that
class of competition is directly felt The
rates named in said tariff do not apply at IN
termediate points. The Interstate law
places no embargo on the traffic of the coun-
try, and most wisely allows it to employ such
lines of railway or other means of
transportation as will best serve
its interest without regard to whether the
lines employed are in this country or not.
The law justly relieves railways subject to
it from the operation of the fourth section
where foreign and water competition is en-
countered. Otherwise our own railways
would be compelled to retire from compet-
tive traffic or reduce all rates to war basis
whenever foreign or water rates had to be
met. Heretofore the railways between Chi
cago and ST. Paul and Minneapolis have ac-
cepted all the disabilities and borne all the
burdens imposed Dy the Interstate com
| merce act, but for some inscrutibe reason
have carefully refrained from exer-
cising the rights and accepting the
immunities which the law provides
for exactly such circumstances and condi
| tions as now surround them. The view of
| the law which has up to this time prevailed
with majority of members interested IN
northwestern traffic seems uncalled for, and
| has prevented such lines from engaging in
| competitive traffic and has undoubtedly aided
| in driving out of the country by short cuts
across the frontiers thousands of tons of
| freight which ought to have been transported
| by your lines. This illiberal and strained
| construction is responsible for the promotion
| Ol bCuCHco W Uullu railways 10
| the national frontier to get traffic out of
| the country the quickest and shortest
way, expelling the business from the coun-
try, repressing trade along the lines and in
the territory we reach and driving commerce
| from natural channels to those which have the
sole merit of obscurity; where if within the
| Jurisdiction of the Interstate law, there is no
other traffic to be contemplated by it, and If
| hoMnp6 iurisdiptinn M at
| be given it, IL is not necessary to inform
| you that the tariff we put in does not make
any new rate, but simply permits our compa-
ny to compete for traffic at the same prices
made by the Canadian Pacific and water
| lines"
The tariff accompanying the above applies
| to all traffic received at Chicago from rail or
lake lines when originating at New York,
Boston, Philadelphia, Baltimore and other
points east of the western termini of the
| trunk lines and from Port Huron, Detroit,
| Toledo, SanduskY, Cleveland, Erie, Dunkirk
| and Buffalo, and all iron articles from Penn
| sylvania destined to st. Paul. Minneapolis,
| Minnesota Transfer, La Crosse and Wlnona.
| 1t does not apply on shipments to intermedi-
ate points. The rates from New York, Bos-
ton, etc, are 10, IL, u, 10, s, Z ana cents on
| iron articles.
The letter and tariff were no sooner read
than General Freight Agent Stohr, of the
Chicago, st. Paul & Kansas City, gave
| notice that the same rates would be applied
| over his line TO St. Joseph, Omaha and Kan
sas City. The Iowa Central also gave notice
that 1t would apply the rates over Its line
from Peoria. Under the rules of the asso-
citation copies of the new tariff must accom-
pany such notices and both roads were COM
PEELED to withdraw them until tariffs could
be prepared. At the very best the Chicago,
st. Paul & Kansas City will be compelled 10
adopt the l5-cent rate to Marshalltown. This
is 3l4 miles from Chicago, ST. Joseph
is 533 miles from Chicago, and
it is manifestly impossible to continue