Omaha daily bee., 1889-10-08
RANK RATE MANIPULATION.
The Private Snaps Worked BY the
O., st. p. & K. @.
A TREMENDOUS SENSATION.
The Whole Scheme Given Away by
laundering shipper Asking
For Rebates at tho
Wrong shop.
Laughter aud INDIGNATION.

Laughter aud indignation.
CHICAGO, Oct. G-[ Especial Telegram to
The Bee. Tho most sensational develop
ments in rate manipulation since the coal
and coke deals of last spring leaked out
to-day.
After the main facts had been gathered
from the Burlington, Rock Island and st.
Paul officials the complete story was told by
an official Of one of the western railroad as
soclations. said he;
About month ago il was charged that
the Chicago, st. Paul ~ Kansas City rail.
road was carrying larger quantities
of grain from st. Joseph to Minnie
apolis and of cattle from ST, Paul
TO Chicago than they reported. Tho matter
was carefully examined into aud the charge
was substantlated in IA measure. For the
month of September they reported 63I cars
of grain into Chicago when it is positively
known they have brought in between 1000
and 5000 cars. Hardly had we secured this
information when the whole thing became
known by one Of the most CHASTITY, although
unintcntional practical jokes ever pcrpo-
tratcd on II man or corporation. All the
grain manipulated by the Chicago, ST.
Paul & Kansas City was through grain,
and was delivered to it Mt St Joseph
by the Kansas City, st. Joseph "
Council Bluffs, branch OF the
Burlington. Last week n prominent shipper
went into the Offices of the Kansas City, St.
Joseph & Council Bluffs and presented or
ders for rebates on |, 100 cars of grain, the
orders having been issued by the Chicago,
St. Paul x Kansas City. The shipper had
mixed the names, and by his mistake had en-
posed the whole thing to the enemy. or
course the Kansas City, st. Joseph n Coun-
Gil Bluffs Immediately notified the Burling-
ton. Then we discovered that the original
report of the manipulated grain having gone
IA win mol ljS mis-
most of it had been originally billed to
| Duluth, but was rcbilled at Oelwein TO Chi
cago the rate beng thus cut from cent to
| ~ cents. On 300 cars this makes big
difference. 1t also explains conclusvely
| why the Chicago, st. Paul ~ Kansas City
| Withdrew its demand for division of the
| traffic from the Missouri river. There was
| abundant evidence of manipulation before
| it did withdraw the notice, however. 1t
| didn't take much argument to convince them
they had better withdraw itN
| Burlington officials substautiated the main
| points in the above story, the part relative to
| the mistake of the shipper in presenting his
rebate notices to the Kansas City, st.
Joseph & Council Bluffs being related amid
| shouts of laughter.
| At the st. Paul Offices fully rs serious n
| charge was made and practically substan-
| tiuted against the Chicago st, PAU ~ Kan
sas City. For the last month the Chicago.
| st. Paul 81 Kansas City has had almost
| monopoly of the Montana ana Dakota cattle
| could learn the reason until last Monday the
| ST. Paul people struck the proper clue. The
| investigation disclosed the fact that the
| Chicago, st. Paul n Kansas City passes on
| account of "stock' grew on almost every
| sage bush in the cattle country. There was
such little difficulty in getting them that the
| ST. Paul itself has stack about six inches
| high
No one is so bold as to prophesy what will
| be the outcome. The Chicago. ST. Paul s.
| Kansas City officials claim the rate was
mistake made by clerk and that no grain
is now being taken by it except at tariff
| rates.
Burlington, ST. Paul and Rock Island OFF,
| cials claim the proof is absolute that the
| gram rate Was manipulated and that
| ness, both offenses being punishable
| under the Interstate commerce act with
| $500 fine and two years in the pententlary.
| The proof is, however, no more conclusive
than that last spring against the Rock Island,
| st. Paul, Northwestern and the Wisconsin
Central and the famous coke and coal manip-
ulation. AT that time Chairman Blanchard,
| of the Central Traffic association, and Faith
oru, of the Western Freight association, is
sued written notice that the proof was con-
elusive, but the roads We're let off with stiff
fines imposed by the presidents associa-
tions. In view of this fact, 1T is
thought that other than ASSOCIATION
action will Dc taken, and this in spite of an
article in the Interstate Commerce Railway
Association agreement and the remark OF
Chairman Walker of the association to the
| members of the interstate commerce com.
mission last week that the main purpose Of
| the presidents association was to sue In the
| United States courts any road either III or
| out of the association which III way manipu-
| lated rates.
| A meeting of the Western Freight Asso-
| citation has been called for tomorrow to con-
| slder the matter.