New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-07-06
THE B. AND O.'S GRAIN CUT.
vICE-PRESIDENT SMITH DENoUNCING AN
ALLEGED FALSE REPORT.
EFFECT OF THE b. AND o.'S ACTION ON TIE
GENTLEMEN's AGIEEMENT"-soME WEST
ERIN ROADS TO MEET THE cUT-oTHER
ROADS DELAY ACTION.

ERIN ROADS TO MEET THE CUT-oTHER
ROADS DELAY ACTION.
Baltimore July 5 (spcciaD-The Baltimore and
Ohio Railroad Company's cut In grain rates Is causing
considerable talk grain circles and 'Change here
Some condemn and Others indorse the roads action
Vice President smith, OF the Baltimore and Ohio. to-
day pronounced be falsehood the report published
in a New-York paper, that the company was running
about among New-York bankers trying to borrow
money President Mayer and the other officials only
smiled at the attack made upon the company by the
newspapers referred to- and declined to discuss the
matter Hambleton Co.'s banking circular to-mor-
row will say: "Tho cut IN grain rates by the Bald
more and Ohio the last straw which threatens 10
break the back Of the agreement among gentlemen
Vice President Smith, Of the Baltimore and ohio' gave
notice to the Corn and Flour Exchange that The Bat
more and Ohio Company after full consideration, had
concluded all circumstances considered to take nde
pendent action and issue its tariff for corn and wheat
on a basis Of II cents from Chicago TO Baltimore 10
take effect after July g. The rate from chicago 10
Baltimore has been % cents and to Phiiadephia 20
cents The cut rate is II cents to Baltimore, ana 10
CENTS 10 philadelphia The Baltimore and Ohio holds
that IL was bound to make the cut as 1t could get no
business at present rates. Whether or not the step
ta,on T. A. wise one remains to be seen. II the Bat
more and Ohio is permitted to carry freight at ne
duced rate without the reduction being met by the
other trunk lines, would of course, secure large
traffic and enjoy advantage but It IS not 10 10 pe
sumed that such will be the case
ITO an outsider 1t is incomprchensible that raroSu
managers should not be able to maintain rates "neh
the inducement TO do so is great, and the penaty
~ a rairoad war SO severe. One would suppose The
baltimore and Ohio Company would De aoout te ~
road to take any con which might tred the expert
ment taking independent action winch PS Se5 70 the
so disastrous bring the Baltimore ana oho "
of hanlk
appealing TO the Drexel-Morgan syndicate lor au' anu
by paying dearly for the assistance rendered.
St. Louis July 5M F. ingalls, president .sS o. se ee
yeSie,Sav He is taking trip over the newly con
soldated lines Of which he IS president The sen
and Ohio was alluded to, and Mr.. ingalls, declared
that he unable to under stand VINO IL was Um
for the cut The other lines must necessarily ioll9w
suit and an order issued last night py MI: is~s
oants virtually cutting under the Baltimore ana
Ohio rate Q cents 1t Will take five days to put inc
rate into effect.
Chicago July met Today to dis
cuss the Ve-cent reduction in the whead anu o1t
to Baltimore and t Ph1d WPond m eo the
While all the other roads fought for delay acSo5
finally hn pGSSs1 o All the roads believe that it win
be necessary to meet the reduction and none OF mem
give goo eon lies in the fact that reduction in
through rates must cause a CORN ;! ohu'ie i'"''O
TO all local points
Columbus Ohio, July (sIecapC5lne nros am
~enmced today that they would meet the Baltgoto
and Ohio cut on W ne anu WIN
go into effect July H.
nh. valuation in grain rates announced by the Raj
timore and Ohio Railroad to take effect to-day mas
caused little excitement in trunk line circles ine
sensation evidently designed when the reduction was
made has been destroyed by the conservative manner
in which the news was received by the other TRUNK
lines The Central Traffic Association, when W Gus
tom has the making Of east-bound heght ra'es' u"
cided on Wednesday TO take no hasty acuoh' in'
trunk lines East have confirmed that decision Mono
of them has given notice of a corresponding reuuo-
ton and none will be given until after the conference
Of the Eastern and Western members OF the Trunk
Line and Central Traffic associations. which has been
called in this city for next Wednesday
Communications promptly opened yesterday
morning between the various trunk lines on the sub
ject and the whos of tile advices nterchanseo
was adverse to meeting the cut. The Baltimore ana
Ohio completes for only a small share OF the east
bound grain traffic moving during the Of water
competition and the only injurious effect of Its re-
duction would be felt by the St Louis lines 1t IS
devise means for protecting those roads that con-
sultation and concerted action arc desired DIV tho
associated roads between the Mississippi River and the
Atlantic se2boad. a rumor circulated that the
now " Biz -Four" combination had met the cut and
made further reduction. Dut Pleslhet lh-allS t1e-
graphed East that the rumor was untrue. Interviews
with the leading traffic officers Of the trunk lines
drew forth emphatic expressions that the Baltimore
and Ohio cut would be responded TO without full
consultation with the Western connections Of the
trunk lines The Baltimore and Ohio has been
deavOring 70 general reduction in grain rates
for several weeks. but 1t has been voted down in
every proposition looking TO thai end which 1t has
brought before the Central Traffic Association.
Commissioner Fink has net yet rendered his
decision I'm the arbitration of the emigrant Clearing
House questions laid before him by the Delaware.
Lackawanne and Western the New York, Ontario ard
Western and the associated trunk lines. 1t may be
made public today