Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1889-02-01
ST. LOUIS Us. CHICAGO.
The Former Can no Lsnger be the Chief
Corn Market for the Great VVest-Ths
New Arrangement TO Restore
That Rank 60 the Latter.
Corn Raisers In Kansas WIN be Interested
IA This; as It WIN Eject Prices
Here-A COmmitts APP
pointed.

ST. LOUIS, No, January 21.-Through ad-
tices which come to hand here from LIN
coin, Neb., it is learned on change that GER
tain roads in the northwest are contemplate
ing a scheme which # put through sucsess-
fully, viii be the death blow to one Of the
largest interests possessed by the city Of St
Louis. It is fact generally known that
this city has been for years the second larg-
est corn market in the United States. Its
territory includes Missouri, Kansas, Ne
braska and Iowa. The receipts Of corn here
since the first of the year have been three
million bushels, being million bushels in
excess Of that received by Chicago. In
other words, st. Louis receipts have been
three million bushels while Chicago receipts
have been two million. This simple state
ment viii help to convey an idea Of the ex-
tent Of the corn trade of the city. It is one
OF the chief, if not the chief feature OF the
city's trade IN all respects. For a number
of years past this trade has been maintained
and increased by the existence of freight
rate from the shipping points in the north
Westt which Is called by the railroad men
"differential.' This rate applies from all
points called Missouri river points, and west
of these to all points called Mississippi
river points. The differentiaI works III this
way; corn is carried from the very fields in
southern Nebraska and northern Kansas to
this city at a rate which
l5 cents per 100 pounds less
than the rate from these same points to the
city Of Chicago. The consequence is that
corn is alWay worth 3 or 4 cents per bushel
more In Chicago than IN ST. Louis. The
d1fferential was made and based on the fact
that Chicago Is a long haul from these points
and st. Louis a short haul, and, further
more, that Chicago can ship Its corn to the
seabOFd for 2 cents less than st. Louis owing
to Its proximity to the ports. Thus, while
st. Louis is The short haul from the corn
fields the EeaDOard Is the short haul from
Chicago, and the long haul from St.
Louis The roads over which this corn is
hauled from the corn fields to Chicago are
mainly the Northwestern and the Union
Pacific These roads have no terminals in
this city, but they have terminals in Chics-
go and they now COntemp plate a move which
viii throw the entire crop of corn shipped
from Missouri viewpoints directly into Chi
Cago, placing it there free on board at the
same rate which is now operated for Mis-
sissippi river points. The proposition
which they are about to submit to the West
eTn association Is this: That the rate on
corn from all Missouri river points and
places west of that line to Mississippi river
points, namely, all points south of Buling-
ton be advanced cents per 100 weight. This
means that corn can be bought IN Chicago
for exactly the same price that 1t can be
bought IN st. Louis and the latter city will
be completely swept out Of eXistance SO far
as ability to reach the sea board is con
Cerned. With the present differential abOl-
ished, st. Louis would be as pOwerless to
to compete with Chicago in the matter Of
exporting corn as it would to compete with
New York or Boston if the exports could be
purchased for the same price In both cities.
The Merchants Exchange has appointed q
committee to investigate the matter and
argue with the railroads against any such
action.