Omaha daily bee., 1889-04-13
ARMOUR q co.'s SNAP.
A Secret Contract with the St. Paul
Which is Profitablc.

CHICAGO, April 12.-ISpecial Telegram to
THE BEE. THE discovery OF the fact that
the st. Paul road had a secret contract with
Armour & Co., by the terms OF which mile
age of cent mile on refrigerator cars was
given when the agreed rate was but three
quarters of a cent was The universal topic Of
conversation to-day among railroad men.
The matter was brought up in a meeting of
the Western Freight association. All the
roads then said that they had no outstand-
ing contracts which would interfere with the
three-quarters Of cent q mile rate given by
the railroad companies TO firms who owned
their down refrigerator cars. The rate was
then made and, so far as known, all the lines
stuck to II except St. Paul. That line paid
the other packers three-quarters of a cent
and paid Armour & Co a cent a mile mile
age. No one seems to know yet why the st.
Paul acknowledged the existence of the con-
tract, which is dated December IL 1887. The
fact is however, that the St. Paul announced
the existence of the contract in the Thursday
meeting of the Western Freight association.
1t created such row that the
board of managers OF the Interstate
Commerce Railway association, which was
in session in an adjoining room was called in
to settle the matter. There was an exceed
ingly stormy time but as the St. Paul con-
tract with Armour & Co. had over three years
longer to run, the other roads had to take
their medicine and also adopt the one cent
mile rate. A generalmana of prom-
nent western roads ID quoted as saying
'The secret rate made by the St. Paul with
Armour Il Co., is practical cut in rates. as
1T gave the firm quarter OF cent mile
more for the use of its cars than 1t could
have obtained over any other road. 1t comes
under the clause in the Interstate commerce
act declaring it illegal to offer any rebate or
consideration calculated to influence traffic.
Then while the st. Paul was paying Armour
o o.. - tl.,N,,.
frigerator cars, they were paying other firms
but three-quarters of a cent. That is the
plainest kind of Discrimination"
"How will it endw
"In nothing at all. Any individual or cor
poratlon could bring an action under the
Interstate commerce act, against the st.
Paul, and undoubtedly secure convictions
under both charges. But no one will bring
charges, and the only Satisfaction we will
get will be in paying out thousands of dol
frigerator cars"
won't the presidents association bring
the charges in accordance with the resolution
passed Tuesday, to act as an association
against any road which violated the terms OF
the Interstate commerce actf'
"Well, l should say not You will be gray.
haired before they ever bring charges. The
railroads ought to bring charges, but they
won't The packers, who have been discrim.
mated against, ought to bring charges, but
neither will they"
Chairman Walker, of the Interstate COM
merce Railway association, said in answer tc
| a questions: 1--WE are organized to punish
| any and all infractons Of the interstate com
merce act, and we shall do it.'' Whether OF
| not the association would or would not bring
| charges against the St Paul, Mr. Walker
| claimed not to know He said, however
| that anyone could bring charges to the asso
citation against any road, and if substan
tiated, suit would be begun in the name of the
| association. In today's meeting of the West
/ ern Freight association it was agreed thai
| copies of all contracts in regard to car mile
| age should be submitted to Chairman Faith
horn he to report which OF the contracts, /
any, contained terms'or conditions calculated
to influence traffic.