St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-06-21
THE CUT IN FREIGHT RATES
Withdrawal by the National Despatch,
But Otherwise the War Continues.
BURLINGToN's DARK MOVE.
4 Probably Unfounded Rumor Of q
Suit Against the $500"
Company.


rate war yesterday was the notice by
the National Despatch of the with
drawal of their "A cent rate from Boston
to st. Paul. The reason assigned for
this withdrawal is that it would injure
their business under the interstate COM
merce law. This leaves the lowest rate
that from Boston via the Fitchburg
line. of 40 cents. Discussion was very
general yesterday on the proposal to
raise rates on through traffic. from Chi
cago to St. Paul, to 60 cents. Before
this cutting commenced the rate was SO
cents. The general opinion on this
proposition seemed to be that 1t would
be very absurd thing, but that 1t was
very improbable that it would be done.
1t can only be done by combination
with the $500" road, and it seems UNI
likely that the latter will c0nsenttO raise
rates. What would be the object Of
putting the rate up to 60 cents is hard
to see. IT it were contemplated to make
it so cents, the old rate. there would APP
parently be some sense in the PROPOSE
ton. There can be no doubt that a res
toration of rates would be the wiSest
thing the Chicago lines could do at pres
ent, but there is no reason for raising
them 10 cents over what they were be-
fore. 1t is understood the proposition
comes from the Burlington, which is a
rather remarkable source, as that road
has little or no local trade. having to
rely for it's business on through traffic
between Chicago and the Twin cities.
Wherein it would be benefited by such
an advance is a cOnnundrum that is diff
ficult of solution. Henry ID: Minot,
president of the Eastern Minnesota,
in discussing the situation. said: II
was rather amused at the statement In
the GLOBE that the Duluth's cut had
surprised the Eastern Minnesota. The
fact is we knew it was coming, and
were informed that the L. S. r. Co.
would make the 54-cent rate. We fore
saw that we would have to make that
rate eventually. but not regarding it as
a legitimate rate, that is to say one that
could be maintained and allow a living
profit, we preferred to make rate our
selves on what we considered a fair ba-
Sis. The 69-cent rate made by US could
have been maintained and allowed
reasonable percentage of profit. l con-
slider that the 54-cent rate was only
made in order to bring matters to crl-
sis and cause speedy settlement OF the
difficulty, for it certainly cannot be
maintained. think the st. Paul &
Duluth acted in good faith, desiring to
serve the best interests of st. Paul mer-
chants by bringing definite settlement
out of the demoralized situation.
Of course we had to meet the rate as
we knew we would have to before we
made the 69-cent rate. But we pre-
ferred that it should come from some.
one else" The cause of the whole
trouble has undoubtedly been the in.
sisting by the $780, road of 10-cent
differentia]. This has been allowed
them right along, and whether they
should have it or not is matter for the
roads themselves to determine. Local
freight agents, however, fail to see on.
what the $500" bases it's claim, saying
that it is the first instance on record of.
the short line demanding differential.
For the information of those who are
not posted in railroad matters it may be
we'll to explain that a differential is a
slightly reduced rate allowed to line.
which has a circuitous route, making a
long haul. When such road has to
compete for traffic with one or more
shorter routes tits manifestly at a dis
advantage, so is permitted to make a
lower rate in order to secure its proper
ton of the traffic.