St. Paul daily globe., 1889-01-19
st. Louis Likely to Lose One
of It's Principal In
duStpieS.
Montanans Confidently Ex-
pect a Boom in Railway
Building Next Year.
Scalpers Are Loading Up With
Mileage Issued by the
Wabash.
Collectors Of Customs Rigidly
Enforce the Regulations
as to Canadian Cars.

ST. LOUIS. No., Jan. 1S.-Through
advices which came to hand this morn
ing 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 iarg-
est and most important trade interests
possessed by the city of st. Louis. 1t
is a fact generally known that this
city has been for years the second
largest corn market in the United
States. Its territory includes Missouri,
Kansas. Nebraska aud Iowa. The re-
ceipts of corn here since the first of the
year have been 100000 bushels in ex-
cess of that received by Chicago. In
other words, st. Louis, receip,s have
been 100000. while Chicago receipts
have been 100000. This simple state
ment will help to convey an idea Of the
is one of the chief, if not the chief
feature of the city's trade in all re-
spects. For number of years past,
this trade has been maintained and in
creased by the existence of freight
rate from the shipping points
in the Northwest which is called
by the railroad men ''diferential.
This rate applies from all points called
Missouri river points, and west of these
to all points called Mississippi river
points. The differential works in this
way: Corn is carried from the very
fields in Southern Nebraska and North
ern Kansas to this city at a rate which
is cents per 100 pounds less than the
rate from these same points to the city
of Chicago. The consequence is that
corn is always worth 8 or 4 cents more
per bushel in Chicago than in st.
Louis. The differential was made and
based on the fact that Chicago
is long haul from these points and st.
Louis short haul, and, furthermore,
that Chicago can ship its corn to the sea-
board for cents less than st. Louis,
owing to its proximity to the ports,
Thus. while st. Louis is the short haul
from the cornfields. the sea-board is the
short haul from Chicago and the long
which this corn is hauled from the corn
fields to Chicago are mainly the North
western and the Union Pacific. These
roads have no terminals in this city, but
they have terminals in Chicago 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
at the very same rate which is now
operated for Mississippi river points.
The proposition which they are about to
submit to the Western association is
this: That the rate on corn from all
Missouri river points and points west of
that line to all Mississippi river points
{namely, all points south of Burlington,
be advanced cents per 100 pounds.
This means that corn can be bought in
Chicago for exactly the same price that
it can be bought in st. Louis, and
the latter city will thus completely
be swept out of existence, SO far as
ability to reach the seaboard is con-
cerned. With the present differential
abolished, st. Louis would be as power
less to compete with Chicago in the
matter of exporting corn as it would be
to compete with New York or Boston if
the exports could be purchased for the
same price in both cities. The Mer-
chants exchange has appointed COM
mittee to investigate the matter, and
argue with the railroads against any
such action,