Omaha daily bee., 1889-10-26
THE TRAFFIC ARRANGEMENT.
Burlington, Rock Island and st. Paul
People Hostile to 1t.
THEY WILL SMASH THE DEAL.
The Presidents OF the Three Roads
Confident OF Their Power to
Make Matters Too Hot
For the Allied Lines
War On the U. r. Arrangement

CHICAGO, Oct. 25-TSpecial Telegram
to THE BEE. l-The situation of the Union
Pacific under It's new traffic arrangement
with the Northwestern will not be bed of
roses.
Really there is tacit II not written
agreement on the part Of the Rock Island,
Burlington and st. Paul roads to fight the
Union Pacific at every possible point.
To understand the situation thoroughly it
Is necessary to go back to 1885, when the
famous tripartite agreement was formed be-
tween the Union Pacific, Rock island and ST.
Paul. A cast-iron contract was at that time
entered into by the three roads which stipu
lated that each should help the other
in every possible way. The agreement
was for twenty years and could be termi-
mated only on a years notice. UP to date no
notice has been gwen by either OF the lines
interested. Soon after the agreement was
formed the Burlington learned of Its exist
euce and commenced vigorous warfare
against the three roads, and after a memoir
able struggle the Union Pacific capitulated
and granted the same terms to 1t which the
Rock Island and st. Paul enjoyed. The rec.
ords show that neither OF the three has turned
over as much traffic TO the Union Pacific as
has the Northwestern.
Although prominent officials of the Rock
Island, Burlington and ST. Paul were per-
fectly free to-day in expressing their opinion
of the new agreement, the nature of the case
the use of their names. The ears
of Charles Francis Adams must have buzzed,
however, to-day as the officials of the three
roads expressed their opinion of him TO your
representative in the most vigorous kind of
English.
any Of them that they would be enabled to
break the agreement between the Union Pa
cfic and Northwestern.
If the Burlington was pig enough in 1885
to break the tripartite agreement" said
Paul Morton, of the Burlington, sit strikes
me that the Burlington, Rock Island and St.
Paul are big enough in 1889 to break the
present agreement"
All Of the officials spoken to agree that the
deal might be good one for the North
western hut n very bad one for the Union
Pacific.
The Santa Fe having been guaranteed large
share of the trans Missouri through traffic."
said t. X. Cable, of the Rock Island "the
deal in one sense follows out set policy of
the Union Pacific, that of ignoring Chicago
as much as possible. The deal the Union
Pacific made with the Northern Pacific about
rates from Duluth and Omaha to common
points was "A body blow to Chicago. The
rates TO Duluth and Chicago are the same
from the east. Then to common points on
the Union and Northern Pacific, traffic via
Chicago must stand the local rote between
Chicago and Omaha oyer what the same
traffic VIA Duluth must stand. Under
the provisions of the interstate commerce act
the effect of the lower rates via Duluth must
extend TO intermediate points, the conse-
quence being the rapid upbuilding of Duluth
at the expense of Chicago. There is no ques-
tiQp that the rates ought to be less from
Omaha than from Duluth. The present deal
is but a continuation of the old policy, the
Northwestern being the only Chicago line
having Lake Superior outlet. 1t will be
no change of policy on the part of the North
western either, as it is notoriously partial to
Duluth on traffic originating on its Elkhorn,
Chicago, st. Paul, Minneapolis and Omaha
branches. l don't suppose the new deal can
be broken without struggle, but II will
surely come when the present rush of freight
slackens. / do not know whether it will
come to u rate war or not, but know we
will break up the deal il posslhle.n