The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-04-26

The exclusive announcement in yester-
days Herald that the Union Pacific and
the Rio Grande Western had withdrawn,
TO take effect today. the application of
freight rates common to Salt Lake and
Ogden alike for traffic to all points in
Utah south Of Lehi and north of Men
don, created q profound sensation among
shippers, for while it was done mainly
for the benefit of the Salt Lake jobbers,
and was very welcome news to them,
they knew nothing of the fact that the
move was to be taken till they received
their Herald Yesterday. To them it was
good news, but the Ogden wholesalers
at once rose up in arms and denounced
the action of the roads as a discrimina-
ton against them, declaring they would
boycott the two lines.
THE SITUATION
The proposition in the abstract is this:
In 1886 all the general managers of roads
interested in Utah traffic met at Denver
and affected an agreement by which the
tariffs on all freight coming to Utah over
the Southern Pacific should be fixed on
basis OF S5ls per cent. of that charged
from the Missouri river. This arrange
ment held good for some years Until the
roads handling the traffic from the east
decided to and did reduce rates with
out consulting tbs Southern Pacific. The
latter road then held that il had been
absolved from the agreement and from
that time until now have made rates
without consulting the other lines.
IN FAVOR OF OGDEN.
This went on from time to time the
application of the Ogden and Salt Lake
common rates still being in force, and
the Ogden jobers getting the benefit. This
operated as d discrimination in favor of
the Ogden people, against which the Salt
Lake Jobbers have steadily protested, but
nothing was done till the Southern Pa
cific on the 10Th of April. published an
other rate to Ogden, so low that the re-
cent action became necessary to protect
the S2it Lake interests. The new tariff
was not generally circulated among the
other roads and the jobbers as has here
tofore been the custom, but on the con-
trary, an effort was apparently made to
keep it quiet 1t accordingly did not be-
come generally known until the 21st
when the Union Pacific and Western be-
came aware of the fact and word was
telegraplNll TO General Freight Agent
Hahn he Western, who was then at
Denve be officials of the two roads
at on Inferred and decided to take
this last step, the notice being published
on the 23rd and becoming effective the
18th, yesterday.
THE REASONS FOR IT.
There are two reasons offered, one
each, by the Jobbers' association and
the railroads, the Union Pacific and
Western, in justification of the with
drawal of the Ogden and Salt Lake COM
mon rate. The jobbers of Salt Lake.
even though the Southern Pacific did not
stop its low rate at Ogden, but gave
Salt Lake the benefit OF it, are not de-
sirous that the Southern Pacific rates
should extend TO this city, for this rea-
son: Salt Lake jobbers buy more than
60 per cent. of their goods from first
hands which they could not do if COM
PEELED to avail themselves of the South
ern Pacific rates and bay IN san IRAN
cisco as they would have to do TO COM
pete with the Ogden iobber with the new
Southern Pacific tariff and the Ogden
and Salt Lake common rate in force.
They cannot reconcile themselves TO
the idea of throwing the markets of Salt
Like open to San Francisco, neither as
a matter of principal do they take kindly
70 the idea of being compelled to buy
goods which have been shipped across
the continent to San Francisco and then
back to Utah. but prefer TO buy first
handed from the manufacturer as they
THE S. P. TARIFF.
The new tariff published by the South
ern Pacific makes reductions from former
ra-es as follows: Whereas the first class
rate was S214 per hundred from San
Francisco to Ogden, it is now
S.S4 is 80 cents, and so on
down the whole list at corresponding
reduction. With this sort of tariff in
force together with the application of
common local rates. the local jobbers
would, as stated, have to give up the
principle OF buying from first hands and
throw open their markets TO san hran-
cisco. Such a course the local JooDers- are
unalterably opposed to, and here ends
their interest in the matter. The con-
troversy they do not in any manner enter
into.
The Union Pacific and the Rio Grande
Western justify themselves in withdraw
ing the application Of the common rate
on the ground that the great bulk of their
Utah business comes TO them from the
Salt Lake Jobbers hence they must pro-
tect them. They are also justified by
their individual interests. In that, if in
stead of buying first handed, the local job
bers were compelled to go to the coast for
their goods, the roads would only re-
ceive the local from Ogden to Salt Lake,
whereas if the reverse is the case, they
receive freight for the longer haul The
local which will henceforth be added to
the freight purchased at Ogden for Utah
common points is only intended to place
the jobbers of both cities on an equal
footing, but inasmuch as it is only from
Is to 30 per cent. Of an advance, 1t does
not fully do that owing to the exceeding
ly low rate of the Southern Pacific TO
OSOGn. liz AAAtAi SOillShQ, lHtIc-
fore that the Ogden people have little
ground to charge discrimination upon,
but on the contrary should be well pleased
that the roads do not increase the local
charges.
AT THE UNION PACIFIC.
The two roads made individual state
ments yesterday concerning the change.
The Union Pacific general Office takes the
stand that the action Of the roads in
canceliing the application of Salt Lake
and Ogden common rates is amply justi-
fed by the rates Ogden people get from
the Southern Pacific. These rates have
not extended TO any station south of Og-
dsn and Salt Lake merchants have to
pay local rates on al. goods received
from the west Ogden people having
the Salt Lake rates were ahead just the