New-York tribune., 1889-11-06
RAILROAD INTERESTS.
TRANSIT LINES DISCOUNTED.
A FRUITFUL SOURCE OF TROUBLE IN THE
NORTHWEST


NORTHWEST
Chicago, Nov. CspocIalD.-The outstanding transit
OF the Northwestern and st. Paul roads is already
creating a disturbance in the Northwest Transit is.
"a Diief freight mileage giving the holder the privi
cse OF paying In transit orders for the transportation
oil wheat or its product the transit In each repre-
senthg the mileage Of the proportion Of the through
rate from the transit point to destination. Nine
'enths Of the grain shipped from the West to Mime
apohs, now and for year or more, has gone on the
through rate with the transit privilege. For year
the 500 line has been carrying East immense
quantities Of four, not to mention that taken In by
the Lake lines via Duluth The consequence is that
iar more transit orders have accumulated in Mime
apols than can be used by shippers the North
western, ST. Paul and Rock Island-the Northwestern
transit lines Naturally, transit orders have come to
10 speculative commodity, dealt In by the Twin
olty Boards Of Trade with the freedom as wheat
pork or railroad stocks While the local -four,
minneapolis to Chicago, has been 1-2 cents, transit
orders for exactly the amount Of transportation
nave been sold on the Minneapolis Board Of Trade
for cents. 1t can readily be that
Inc Issuance OF this transit practically gives
control of the traffic or gnatng their lines to the
uansh roads. The Burlington and Northern, Wiscon-
SIN Central. and Chicago. st. Paul and Kansas City
had to depend entirely the Northern Pacific and
Manitoba for slice Of the grain and -four traffic. and
oven for this they found the transit lines keen
petitors
IL was tho existence Of this transit privilege which
caused the refusal of the Northwestern lines. two weeks
ago TO accedc TO the proposition Of the trunk lines,
Canadian Pacific and " eoo' for advance in rates.
when the trunk lines put on the and convinced
the northwestern lines they had better accept, It was
Only at the point of the sword that the transit lines
made concessions.
The burlington and Northern, Wisconsin Central,
and Chicago, St. Paul and Kansas City, under the
leadership OF Traffic Manager Hambln, OF the first
road saw their opportunity and used It to nullify
iar a. possible the advantage the Issuance Of milling
m-tfansit orieB gave 10 transit roads. Their ulti
matIm was that the -four rate, Minneapolis to Chicago
should be 10 cents that milling In transit orders should
be good for transportation over any line, and that
the orders should be redeemed by the line Issuing
mem at . cents, irrespective Of their market price
IL was bitter pill for the transit lines to swallow.
put tLey had 10 do II. It is promised however.
that the truce will be but temporary
- FROM general freight agent one OF the transit
lines 1t was learned to-day that the ST. Paul had out
standing nearly 44.OOOOOO pounds OF transit, the
Northwestern nearly $4,000 900 and the Rock island
about 100000. Transit is presented daily for
adoption on transportation which is all the way from
TWO to eight years old 1t is improbable specu-
atlon 70 keep on issuing II at low proportion Of
through sale and be compelled 10 redeem il at cents
and bets are already being made that the agreement
Will not last a month