The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-07-28
FREIGHT RATES TO CHICAGO WILL
BE MATERIALLY REDUCED
THIS MORNING.
OMAHA AND GREAT WESTERN
MAKE A CUT OF ABOUT FOUR
CENTS A BUSHEL ON
WHEAT
FROM MINNESOTA ST.
STATIONS.
Other Lines Are Dissatisfied and a
Lively Rate War May Yet
Result.

The bitter war which has existed
Among the railroads for several weeks
in the matter of grain rates promises
to be brought to a focus very short
ly, for the very good reason that
rates have now gone down so low that
there is no profit in the grain traffic,
and railroads, some of them at least,
are operating at a loss by reason of the
war.
Two new cuts will go into effect to-
day, those of the Chicago Great West
ern and the Omaha and more excite
ment is looked for. All talk of a COM
promise is off, and from the present
outlook the situation will continue to
grow more complicated until the traffic
men of the different lines agree to come
together.
The rates on the Omaha, to go into
effect today, are an average cut of
cents per hundred pounds, all along
the line, on wheat and corn. The rates
from Minnesota and the Dakotas are
reduced by reason of the effect of the
cuts by other roads in Nebraska and
Iowa territory. The cut is bound to be
taken advantage of by shippers while
1t lasts. From some of the points,
where the old rate was 81 cents per 100
the rate has been cut down to II cents
On wheat; and from % cents per 100 on
corn, to Is cents. The average reduc-
ton, however, from Nebraska points,
Is about cents, and slightly less for
Minnesota and Iowa. 1t is rumored
that a still further reduction may go
into effect unless an understanding is
reached soon.
The Great Western will also place an
other rate in effect today The old
rate of Is cents on wheat will be cut to
u cents per 100, and on corn from IA to
D cents. And thus the merry war goes
on. Other southwestern lines will be
heard from, very likely, in a day or
two.
1t was the original rate of 16 cents
on wheat and IA on corn maintained
by the Great Western which is largely
responsible for the present war in grain
rates All grain west of the Missouri
river for years has been billed so that
lines entering Kansas City get the big
part of the business, and lines from
that city to Chicago get the balance Of
the haul Some times there was money
I'm it and often there was not.
These balances were unsatisfactory
to many of the lines, and the Great
Western took an average Of the
balances earned by the other lines, and
set up the result as a permanent rate.
The balance thus fixed was as stated
above. Is on wheat and IA on corn. The
other lines looked upon this rate as
cut on the fixed rates then in force
and went the Great Western one better,
and thus the present war started. Cuts
are coming thick and fast. One went
into effect last Friday, and the above
schedule comes into effect today. The
Great Western rate in effect today is
the lowest that has yet been made.
The competitors of the Great Western
contend that that line should maintain
local rates on Kansas City grain, that
is "A cents on wheat and 20 on corn,
but the Great Western insists that
Kansas City has no local grain and
therefore no legitimate local rate. All
the traffic of Kansas City is through
traffic. 1t is expected that some agree
ment will be required before many
days have gone past. Chicago lines,
and lines from the Southwest into that
city are already crying quit, but none
of them will give in first.