The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-06-27

The big power dam which is being
constructed at Ogden is the innocent
cause of a very interesting conflict
that has been going on for several days
past among the freight departments of
the Union Pacific, Southern Pacific and
Rio Grande Western railroads and
which eliminated yesterday in lower
ing the freight rate on lumber from
Portland to Ogden to 2714 cents per
hundred. a reduction of 10 cents from
the rate that has been maintained so
long.
The matter came about in this way
Rhodes Bros, the, contractors, had ION
tIacted for 100 cars of lumber, or there
abouts, i'm Oregon and opened negotl-
ationS with the Union Pacific for a
rate That company being desirous, OF
course, of securing the business, put
in rate of 80 cents from Portland to
Ogden without, it is claimed, securing
the authorization of !, the committee
supposed to pass upon and reductions
in rates, whether special or otherwise.
By some means the Southern Pacific
people learned of the deal and satisfy
ing themselves that the rate had not
been authorized, decided to do a little
cutting also on their own responsibility.
Rhodes Bros. We're accordingly mott
fed that the Southern Pacific would
make a rate on lumber from Portland
to Ogden of 271a cents. The contractors
were naturally willing to take advan-
tage of every opportunity, but before
giving the business to the Southern Pa
cific, notified the Union Pacific that a
competitor was in the field with a
lower bid. The Union Pacific people
were on their mettle at once and tele-
gram to- Omaha brought the head of
the freight department. west in a
hurry.
Mr.. Munroe was in no very amiable
mood and threatened to retaliate by
also putting in the 271a cent rate and
by extending it to Salt Lake and to
all points in southern Utah where the
Southern Pacific has no line.
Up to this point the Rio Grande
Western had not figured, but when Mr.
Munroe issued his ustimatum the
freight officials became very interested
spectators and looked on quietly but
watchfully while the passage at arms
| between the other companies waxed
hotter and kilograms flew thick and
fast between the Union Pacific general
! offices, here, and Sam Francisco. The
/ Western took no part in the contro-
yersy further than to offer its counsel
against reducing the rate to southern
Utah points, not wishing to see rates
demoralized. At length, however whegl
1t began to look as though Mr.. Munrpe
would put his ultimatum into effect
the Western, to protect Itself, was
T compelled to notify the Union Pacific
that if the 271a cent rate was extended
south of Ogden, the Western would
nave to name like rate
knowing that this would practically
give the Southern Pacific an outlet
| and enable it to compete in southern
Utah, and that the enforcement OF
his ultimatum meant inevitably an
unnecessary reduction of revenues.
Mr.. Munroe recanted and yesterday
the difficulty was settled by the two
roads deciding to publish a rate of
271a cents on lumber from Portland to
Ogden.
The question as to who will gel
the Ogden Power dam freight is un.
derstood to be still in allegiance. al
though it was reported last evening
that the Southern Pacific had Sc
cured it. 1t is thought, however, that
the ultimate result will be a division
of the freight between the two roads.