Omaha daily bee., 1889-04-26
WAR AMONG The RAILROADS
Managers Accuse Each Other
Frankly of Cutting Rates.
SOME cAusrlc LETTERS PASS.
Trying to Carry Tranio Around Three
Sides ofnit square ut the
EXPENSE of tho
a Fourth.
Mnninnlntinr Rates.

CHICAGO, April 25.-In spite OF strenuous
efforts 10 conceal the facts it was ascertained
to-day that the st. Paul and Northwestern
were the roads guilty of manipulating rates
on coal and coke from the east to Omaha,
st. Joe and other western points.
j. W. Ellsworth, the coal merchant is the
shipper in whose interests the rates were so
manipulated as to cut the rate to HIM 35
cents ton. President Hughitt, of the
Northwestern, refused to answer any ques-
tion on the subject.
OF Ellsworth, one of the most prominent
merchants in Chicago said: HE has piled
up an immense fortune solely on his ability
to work railroads into manipulating rates in
his favor. 1 doubt If for five years: have
laid down ton OF coal in Chicago that has
not cost me from 90 cents to 81 more than
Ellsworth pays"
Railroad men scoff at the idea of any one
be ing punished for the manipulation. The
proof is absolute but 1t Is the general belief
that the parties will be whitewashed.
"A A very caustic letter has Just been sent by
Chairman Blanchard to Freight Traffic Man
ager Bird, of the st. Paul road. Mr.. Bird
wrote Mr.. Blanchard that the ST. Paul was
in receipt of proposition to join line north
of milwaukee, in through rates from Chicago
to points on the north Atlantic seaboard,
SPECIAL reference being made to export busi-
ness. The new line proposed to open route
in connection with the Canadian Pacific and
the 800" and offered the ST. Paul far more
than the 10 per cent division of the through
rate now allowed by Chicago east-bound
roads Mr.. Bird added: 1--WE have not given
this proposition consideration further than to
reflect upon our relations with the lines,
members of the Central traffic association.
Two or more Of those line have Joined hands
with the Canadian Pacific and the 500 in
terests on traffic to the northwest, which has
had a serious effect on our traffic.
"We consider that it is as legitimate for US
to accept the proposition recently made to us
as for your lines to keep open the routes that
are now working with the Canadian Pacific
and the 500 from middle and western states
points"
To this Chairman Blanchard answered:
''1f my information is correct this proposition
is made to your company by the Milwaukee
and northern, and Is in effect proposal to
take freight around three sides OF the square
against roads operating on the fourth and
short side. On the general subject of form
ing such circuitous lines, / believe that more
general harm has resulted from them in
broken rates and depleted revenues than
from any other cause. The proposal to
| mako lower rates for this longer line, espec-
tally in export traf1lc, which is the cheapest
carried to Boston,, is to permit your great
company to demorihze, rather than upbulG.
Generally speaking, believe it would in.
iure the interests you have in connection
with our roads, If we found you entering
| the Chicago mar,ietto deplete our legitimate
traffic and rates Via an iliegitmate goats
horn route like this. The time has gone by.
had hoped, for amy such folly. There is
Meth er profit nor sense in it,"
Northern Pacific Affairs.
New York, April 25.-At special meet
ing of the Northern Pacific directors the
resolution agreeinSt to an arbitration con-
tract for the control and harmonious opera
tions of the roads in the Pacific Northwest
tain guarantee of u dividend
on Oregon Navigation stock from
the Northern Pacific Jointly with
Union Pacific, and throws the burden of the
lease on the Union Pacific. A proposition to
operate the Wisconsin Central on a percent
age of earnings was discussed, and three
forms of proposed contracts were presented
Only one was read, however, after which
the board adjourned to meet again next
Thursday.
After adjournment it was announced that
Brayton Ives who is one of the most active
members of the Northern Pacific, had
resigned his Office of vce-presdent of the
Oregon Transcontlnental company, to take
effect May l. This is understood to indicate
that the relations of the old Northern Pa
cific directors, with Willard, have been Sc
vered, and it is expected that the representa-
tives of the Oregon Transcontinental in the
Northern Pacific will withdraw from the
Northern Pacific directory.
The Milwaukee's Latest Scheme.
CHICAGO, April 25.-The Central Traffic
association is stirred up over the announce
ment that the Chicago, Milwaukee s. st.
Paul route is about to enter the field for
through traffic between Chicago and
the Atlantic seaboard. 1t pro-
poses to make an open route in con-
nection with the Milwaukee & Northern,
Canadian Pacific and 800" Spicy corre-
,l.,,.,
Manager Budd and Chairman Blanchard on
the subject. and If the st. Paul puts its plan
into operation, it will undou btealy injure its
interests in connection with lines running
east from Chicago.
Better Service.
General Manager st. John and Superin-
tendent Royce, of the Rock Island, were at
Union Pacific headquarters yesterday, max
ing arrangements for the new time card that
will go into effect on the Union Pacific May
12. The change in the trains will affect all
connecting lines Under the new time card
the Alton trains will be scheduled over the
Kansas division of the Union Pacific to Chey
enne, the details Of which have been pub
lished in The BEE, and the Union Pacific
will run its trains over the Norfolk branch to
Sioux City. The Alton deal also provides for
the Union Pacific to run its trains over the
~
BEE. upon the application of the new time
card, the Union Pacific will abandon
the Golden Gate special. This train was an
experimental one and was well patronized
while in the service. 1t cost the Union Pa
cifc just siper mile to operate the Golden
Gate, or $3.50 for every round trip made.
AT no time did it fail to pay expenses, and
the Union Pacific only take 1t off in order
that it can give the same same service daily
instead of weekly fhe truf1ic has grown to
such an extent that the weekly fast service
was insufficient, and in order to accommo-
date its patrons tho Union Pacific will make
its fast service daily The report in morn
ing paper concerning the loss incurred by
operating the Colder Gate is pronounced alb
surd.
A Complaint.
OMAHA, April 2S,-To the Editor of The
BEE; Iwould like To call your attention TO
the railroad mems reception recently given
at Y. M. G. A. hall. This association is sup
Dosed tn look after ail wayfarers WIN are