The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1889-01-19
GRAIN TRADE OF ST. LOUIS.
A Railway Device That Promises to Rob That
City of a Valuable Portion of It's Trade

ST. LOUIS, Jan. 1S.-Through advices
which came to hand this morning, from
Lincoln, Neb., it was learned on 'Change
that certain railroads in the Northwest are
contemplating scheme which, if put
through successfully, will prove the death
blow to one of the largest and most impor-
tant trade interests possessed by the city o1
st. Louis. 1t is fact generally known
that this city has been for years the second
largest 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 100000 bushels in excess of those
received by Chicago, In other words, ST.
Louis receipts have been 100000 bushels,
while Chicago receipts have been 100000
bushels This simple statement will help
to convey an idea of the extent 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 number of years past this trade has
been maintained and increased by the exist
ence of freight trade from the shipping
points in the Northwest which is called by
the railroad men "a differential." This rate
points, and west of these to all points called
Mississippi river points. st. Louis is one
of these Mississippi river points. The diff
ferential works in this way: Corn is car
ried from the fields in southern Nebraska
and northern Kansas to this city at rate
which is cents per 100 pounds less han
the rate from these same points to Chicago.
The consequence is that corn is always
worth 3 or 4 cents per bushel more in Chi
cago than in ST. Louis. The differential
W. do ho sod on ha foc hat
cago is a long haul from those points and
st. Louis short haul, and, furthermore,
that Chicago can ship it's corn to the sea-
board for 2 cents less than st. Louis Thus,
corn fields, the seaboard 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
this city, but they have terminals in Chi
cago, and they now contemplate move
which will throw the entire crop of corn
shipped from Missouri river points directly
into Chicago, placing it there free on board
for Mississippi river points. The PROPOSE
tiOn which they are about to submit to the
Western Association is this: That therat on
corn from all Missouri river points and points
points, namely, all points south of Burling-
ton, be advanced three cents per one hum
dred weight This means that corn can be
bought in Chicago, fqf exactly the same
price that it can be Dought in St Louis,
and the latter city will be completely swept
out of existense so far as ability to reach
the seabOard is concerned. With the pres
ent differential abolished, st. Louis would
be as powerless to compete with Chicago In
to compete with New York or Boston, if
the exports could be purchased for the same
price in both cities. The Merchants Ex-
change has appointed committee to in
vestigate the matter and argue with the
railroads against any such action.