St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-02-12
Sensational and Unexpected
Cut in Rates by the st.
Paul Road.
Manipulation OF Tariffs by
Competitors Renders This
Move Necessary.
A Cut Of Thirty-Thre Per
Cent on Chicago-Kansas
City Business.
The Gentlemen's Association
Receives a Blow That Stag
gers 1t.
Special to the Globe.

Spec1at TO the Globe.
CHICAGO, Feb. 1.-THE most sensa-
tional and unexpected announcement
made in a railroad meeting in years
was that of the Chicago, Milwaukee &
st. Paul road in the meeting of the
Southwestern division of the Western
Freight association to-day. In brief. it
was the announcement of a reduction
of 1915 per cent on all freight between
Chicago and Kansas City. The men,
bers of the association were astounded
when General Freight Agent Hiland, of
the st. Paul road, proposed the tariff.
For over year the st. Paul had threat
ened to make the reduction, but its
competitors did not believe any road
would take SO radical a step. All
the Missouri river railways take the
same rates, and the Kansas City tariff
must apply to Omaha, st. Joseph and
all other Missouri river points. Under
the workings of the interstate COM
merce act the locals must be reduced
CORRESPONDENCE, and the application of
the reduced tariff consequently means
loss in gross earnings of nearly 3 31ss
per cent on all Western business. The
meeting was opened by Chairman
Midgely, who read the results of an IN
veStigatiOn into various charges of
manipulation in rates made by various
members against other members. Chair
man Midgely said the investigation had
been an exhaustive one and developed
absolute proof that every road in the
association except the Missouri Pacific
and st. Paul were guilty as charged in
MANIPULATING RATES.
As an illustration of this manipuIa-
ton. Chairman Midgely quoted the fig
ures to all Southwestern points on dry
goods. The proportions carried by the
different roads were as follows: Alton,
81 per cent; Burlington, Is 9-10; st.
Paul, 9-10; Rock Island, 5 Clio; Santa
Fe, Q $40; Chicago, st. Paul q Kansas
City, 80 6-10: Kansas City. Fori Scott d
Memphis, 2-10; Missouri Pacific, q LILO;
st. Louis & San Francisco, 40; Wa
basha. 16; st. Louis, Kansas City &
Northwestern, 2-10. Comment was un-
necessary on these figures. but when
Chairman Midgely read others. which
In turn proved absolutely that all the
roads except the two mentioned had
been manipulating rates, it brought
on mutual determinations which babe
fair to end in immediate disruption. In
the midst of the turmoil, General
Freight Agent Hi]and. OF the St. Paul,
drew from his pocket paper, and. Sc
curing the floor. announced that the st.
Paul road had been unjustly accused at
various times of manipulating rates.
Not one OF these charges had ever been
proved, nor would they ever be proved.
The st. Paul had suffered under these
charges and the notorious manipulatiOnS
of its competitors as long as it could
stand it. The time had come when the
st. Paul proposed to put stop To both.
The chairman had claimed and
substantiated his claim by figures
that rates were being manipulated
to the extent at least of 33116 per cent on
the entire business, The St. Paul did
not propose to fight the devil with fire,
but would make an open reduction i'll
rates to the amount of manipulation
reduced rates be likewise manipulated,
the st. Paul would again reduce rates to
the amount of manipulation. He then
read the new tariff of the st. Paul as
follows: First. SO; second, 3715; third,
2719; fourth, %; fifth, 1919; A, %; b,
1881: G, Is: D, 1873; E, l21155. The present
tariff is: First, rs; second, 60; third,
40; fourth, 80: fifth, 25; A, 80;
B, 25; G, 20; ID. 1715; E, is.
The other roads present voted that an
appeal to arbitrate be taken on the pro-
posed rates, and ur der the rules it is
SO ordered. The st. Paul was compelled
to await the delay under the rules. The
matter will be arbitrated by Chairman
Walker. of the Interstate Commerce
Railway association. Should he decide
adversely, the rates will be put in under
the ten days clause.