The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-05-16
LAKE AND RAIL PROBLEM.

President Roberts, of the Pennsylvania,
Ety. Says = Fight Is Sure to Come.
Mr.. Roberts, president of the Pennsyl-
vania railroad, is reported to have said that
a fight between the all-rail and lake-and-
rail rates for carrying freight between the
west and the east is bound to come, and
that it looks as if the struggle has been be-
gun. THE question ia, can the all-rail
lines transport freight as cheap as the lake
and-rail lines. To Determine this a strug-
gle will ensue. but am led to believe that
that all-rail routes will be Victorious
This would seem to indicate that Mr.. Rob
erts believes that the ~all-rail rate hereafter
will be as low as the lake and-raii rate. If
go, this is important, for it means a perm2-
nent reduction of the through rail rates.
The lake and-rail rates certainly will not
be advanced over those prevailing of late
wears, go to make them even the rail rates
must be reduced.
But this would seem to be more difficult
now than a few years ago. when the bulk of
the traffic came from or went to Lake Mich
igan portg, and chiefly to Chicago. What
ever advantage the lake vessels may have
vantage of having to carry freight $50
miles between places only 525 miles apart
by rail. Nevertheless, they seem to have
thriven on rates between Chicago and Buff
falo such as have never been made openly
by rail. Blu there has now grown up q
great traffic between Lake Superior ports
and the east, and the distance between But
fnlo and Duluth is not much greater by
lake than by rail, and perhaps freight
shipped by propeller from Duluth will, on
al average, reach Buffalo quite as quickly
Us when shipped by railway stations not
delaying the vessels much. If, now, the
railroads propose to make rateB to Duluth
cc W., a q Lv MIA %Gar x,i1J Ia-a - s-nI
them extremely low-under present dir
cumstances unprofitably low, and if they
carry for nothing between New York and
Duluth (Which might mot be a very serious
matter) the interstate commerce law says
that they must carry for nothing between
New York and all places this side of Du-
luth, which would be a very serious mat
ter, indeed.
A reduction of lake and rail rates is a
common thing at this season, and is really
a result of q previous reduction in all rail
rates. Some time before navigation opens
tho railroads begin to bid for a share of the
grain which has accumulated in Chicago
elevators in anticipation Of that event. If
traffic is active at the time, only the weaker
lines may 90 this, but if the O lines
have many cars on side tracks, they toe
take part Ia the competition. This yeal
for some weeks before the lakes opened,
while the regular rate from Chicago to New
York remained nominally 25 cents per 100
pounds, probably nearly all the grain car
Iled was taken at abont 20 eents, which wal
the regular lake and rail rate. OF course
tho vessels would not let their business es.
care then in this way, and they wen,
enough below the actual rail rates to enable
them to get cargoes. The tirst-elass rate
from New York to Helena is 81 cents q hun
dred less by the lake and rail route than i
was by the all-rail route before navigate,
opened on ths lakss.