New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-23

AGREEING ON A REDUCTION IN THE
ST. PAUL-cHIcAGo LOCAL RATE.
ICY TELEGRAPH TO THE rAIBcSEI
Chicago, Aug. 22.-The mighty hand OF Judra
Cooley chairman Of the Interstate Commerce Com.
mission, descended to-day on the turbulent North.
western roads, and them sOrely. In trying to
avoid the blow the roads escaped Scylla only 10 srs
Charybdls. the net result being that local rate Of
10 cents per 100 pounds rsclass will be In effect
tomorrow morning between Chicago and 81. Paul.
The cut Of the Burlington and Northern proportion
Of the through rate from 90 10 cents, Chicago
ST. Paul, was the most sensational cut OF the year;
but as the local rate was kept at 80 cents, earnings
would not be largely decreased but little through
traffic went by rail 10 ST. Paul The reduction Of tho
local rate, and for that matter Of tho
through rate also. to a 15-cent basis re-
ducton in gross freight earnings Of rs per cent. as
already mentioned in these dispatches heroic
seemed the only cure for the complicated North
western situation and the l3cent all round rate ID
morally certain to kill or cure.
The morning session OF the Western Freight Asso-
citation witnessed only vain wrangle over the
question. and adjournment was taken until p. nj.
to give Chairman Fairthorn an opportunity to consult
with Judge Cooley In regard 10 the situation. mo
result was read TO the association by Chairman
Eairihorn and proved the biggest bombshei ever
exploded in an American railroad meeting Juasa
Cooley's opinion was as follows:
First--The tariff which the Chicago. Burlington and
Northern has put force is nothing but local ta
1t is not Joint tariff and nothing can be joint tarlh
in which the lines do not unite. THEREFOR every ums
the change on a local consignment is different from tho
rates named said tariff, it Is breach Of the Jaw easa
| con sgnment being q separate offence.
secondy-Even II the rates were otherwise leea s''
great dsparty between and the socaed local rates
would OF Itself render them Illegal; and this applies
whether the fourth section Ohe long and short hau ~
ignored not IN, - -,
Ttil!y-If it is persisted in, The remedy VIII De ioe
tho Commission TO reduce the local rates q the basis "h'h
has been established The roads must expect u'' "A'
| remedy will be applied. and that speedily
Not,-If the Commiss Oh announces rates. these fS"'
hold good until changed by them. -,
FomthiyThe Commission prefers that the roads dea
with this question themselves but cannot toIefSe He
present condition things, and promp afuoh must 70
had II Is public scandal and disgrace and w1l II u "
continued reflect upon the Commission a. the ae~' A'
is invalid No ten days notice is necessary
The members of the association were compe'en
stunned by the report General Manager Egan, oil ths
Chicago, St. Paul, and Kansas CRY, was nrst W 10,
cover Rising to his feet, he said :" Mr. Chairman
want the record of the Chicago. St. Paul ana hansa'
CITY to be perfectly clear I'm this matter IN inc %
nace would like TO ask il that road has not Vo'ei
all the time for restoration OF iates ara oee P'
n forced follower I'm meeting low rates.!
The chairman said that the record OF the INV 80.
- paul and Kansas City perfectly clear, ana "as
il could In no sense be called demoralizer' ihe'
continued Mr. Egan, we propose 10 Keep oui ~.
as clear legally. In view OF the decision Vi 'une'
cooley there is but Of two things for US 10 10
other to 90 entirely out of business, not moving
Mound of freight or to make legal rate as ~" T"
anv OF our competitors. We choose the iat'er couis'
Dd herewith give notice that will reduce the oo'
ceh3 local rate Chicago ST. Paul. to lo-ceht uass
In other words, we will conform exactly 10 'uus'
Cooleys decison'
This notice fairly electrified the members, all o.
them clamoring TO be heard before another roaa eou
give notice of reduction. One OF the cooler n'a'
near the chairman, however, secured the Ia''er o.
tenton. and made a motion to adjourn Inc mo'ioh
was declared carried, and the disor1eriy meeting N'
brought to a close II lasted barely twenty minutes,
but seldom or never in railroad history were "eh'
minutes SO fraught with weighty results
What the outcome will be no man can iore'eh WIN
.,airtv The l5-cent local rate goes into
effect tomorrow morning, and, as II Is periccuy
legal must remain in force at least ten daSS AZ
view of the position taken by the Burlington "'N
Northern, it is extremely doubtful if there WIN 10
any immediate raising of rates The whole dhculy
l,os in the position Of that road. II made the To-
cent rate originally to Canadian Pacific ana wafer
competition in the Northwest II must 40 Goss
the through business, as It's i0es be other ST.
Paul roads with the possible exception OF me moI1
Island must meet the l5-cent rate' rom , awe
m. up entirely Its share Of the through rsns,
business or compel the other roads 70 HJoP III This
The I5-cent rate by itself refusing 70 yisu. ass'
course however means bankruptcy for all tne s
and n Is reasonable suppose mat tney WIZ ,harn
pogether and buy up the burlington ana MOTIFS, =,
sooner than allow themselves TO 90 slowly o'e" ="
death oi.o ,,antioned in
Another phase of the question: also ths seen
local rate compels It's adoption. win sns mean,
vance al the Missouri River gateway, l w ci,y
that The nrescnt T5-cent local rate to kanss eu3i
St Joseph etc. he reduced TO about ~ II
OF course this is contingent upon me leps"'n'' -
Inc TSccnt rate 10 81. Paul and Mlnneapol ,;, a,
Chairman Cooley was AZ the Palmer HOUSE IA -,
- nnin% and talked freely the subject sam
be: The officials Of the Northwestern ROADS s
n c,iIrc The y navel OF fools. OF course Canadisn
Pacific Competition has eaten deeply into their esrn
;ns hut that Is no why illegal tarlis shon -
hc ne made 70 meet the situation. ! appreciate tng
condition of the roads fully, and viii help them "a
i nan hut certainly will not allow them 70 proeesSe
further in their present lawless course the fSsus
were making a laughing stock OF the Interstate ~.
meice commission. We propose now 10 see tha ny
law shall DO obeyed. The Interstate Commerce hsys
IL NOT perfect and we already see w wsi1
Il can be improved II VIII pr sss.Ios
he amended during the next sos ssas
OF Congress with view to protecting American pSN
from Canadian competition.