The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-22
AGAINST DIFFERENTIALS
NEW YORK PRODUCE EXCHANGE
WAGISG AN EARNEST FIGHT.
The Illinois Central Reaching Out
Northwestern Lines Have Twelve
MOnth1 Business An sight.

Several times in the last few months the
Journal has noted the aggressive steps the
New York Produce Exchange was taking
to recover some of it's lost export business,
as a result Of the prosperity of the lines
which have differentials. the Chesapeake &
Ohio. at Newport News especially, having
led In this matter, and Baltimore and Phil
adelphia doing unusually well in the last
few years by having such differentials. The
New York Produce Exchange not being
able to effect anything in its favor through
the Joint Traffic Association, is now apply
ing new tactics. The attorneys of the ex-
change have been taking evidence In Phil
adelphia, Baltimore and Newport News, and
have filed their briefs with the Interstate
commerce Commission. The New York
Produce Exchange, through its attorneys,
claims that the export traffic referred to
has been diverted from that port substan-
TALLY by what are known as 'differentials."
These are the lower freight rates given to
Philadelphia (by cents per 100 pounds) and
to Baltimore and other Southern ports (by
cents per 100 poundsO A part of the sys-
TEN of differentials is that transfer charges
at the various ports shall be equalized, so
that the full advantage of the lower rates
snail be secured by the ports to which they
are allowed. THE gst of the complaint Of
New York before the commission to-day is
that the differentials are steadily taking
away to rival Atlantic ports her fair and
legitimate share of the reduced percentage
of grain, flour and provisions now seeking
outlet through Atlantic seaboard gate
ways" 1t is acknowledged that ports like
Galveston and New Orleans are taking an
increasing share of the total trade, but the
share of New York in what is left is cut
down by the lower freight rates given to
her rivals. These differentials were orig
inally granted for the avowed purpose of
making the cost of transport from the
Western grain fields to Liverpool the same
without regard to the port through which
the grain was shipped. The Produce Ex-
change claims that they have long since
ceased to have this effect and now have ex-
actly the contrary.
The other side will probably soon take
some definite action, and will certainly do
so If the Interstate Commission
should see fit to consider the briefs filed be-
fore them. The New York Produce EX-
change proposes that the whole coast line
from Boston to Norfolk should be treated
as competing point, that the arbitraries
and differentials should be entirely abOl-
1shed as to export grain, flour and provi-
SiOnS, If not on other classes of freight and
that the rates to all Atlantic ports should
be the same from Chicago and the usual
proportions apply to indianapolis, st. Louis,
Peoria and other Western trade centers
Before the exchange accomplishes such a
result 1t will doubtless experience some
hard fighting, as Philadelphia, Baltimore,
Newport News and Norfolk will not quietly
submit to being practically wiped out as ex-
port shipping points, unless it be at times
like the present when there is plenty for
all export points to take care of.
MeIIen VIII Stay Where He Is.
President c. S. Mellen returned to ST.
Paul yesterday from New York with the
settled purpose of remaining at the head
of the Northern Pacific. Mr.. Melien said in
an interview yesterday: 1.-The presidency of
the Union Pacific system was not offered to
me. 1 am not in a position to accept any
position that leads to the place or any ether
than the one l now hold. l am in honor
bound to remain as president of the North
ern Pacific until my work has been accom-
plished or until Mr.. Morgan and his $3.50
ciates, who placed me in this position, see
fit to terminate the present arrangements
with me and desire me to take up other
work. 1t would not be consistent with v
past record nor my sense of nonOr 20 rse
the presidency of the Northern Pacific us n
stepping stone to another position. even at
an increased salary. The declaration Of
Colonel Lamont that 1 am 10 remain in
my present situation ought to have been
sufficient to stop further gossip relative to
the matter. Colonel Lamonts friends are
my friends and my friends are his. rs far
as the Northern Pacific is concerned. There
has never been the slightest fTIcs.>1 between
us or our mutual friends. Our reIaiic ms
have been very cordial"
Mr.. Mellen admitted that lie ha net otI or
gentlemen interested in the n organize iC n
of the Union Pacific. and hid to some tx-
tent conversed over the future IF that sHs-
tem but declared that ale WAS net in 4
position to receive any proposition from
them looking to his entering %tle service CT
that company Mr.. Mellen WIS not III a
position to Indicate who was likely To be
selected as president of the Cnion Pacific.
Two interchangeable Mileage Tickets.
There will be two interchangeable mileage
tickets hereafter in the territory of the
Central Passenger Association. One of the
tickets will be good for transportation on
trains when presented and the other will
not be good when offered on trains. The
meeting of the committee lines in Chicago
yesterday to consider the interchangeable
ticket matter was very warm and lasted
all day. 1t was evident that no agreement
could be reached, and the Vanderbilt lines
sue a ticket of their own which will be good
Tor transportation when offered to the con-
mittee will follow the lead of the Vandef-
bilt lines. and, although the number is not
yet assured, it is likely that the ticket
OF the Vanderbilt roads will be accepted
by about ten of the lines in the committee,
the rest of the lines continuing to use the
old tickets. 1t is not certain at what date
the Vanderbilt roads will be able to get
out their tickets, but it is expected they will
have them for sale by the first of the year
or within q short time after that The
Vanderbilt roads are confident that in a
short time the other roads of the organiza-
tioE will come round to their way of think
ing, inasmuch as their ticket will be ac-
cepted for passage by the roads going
through Buffalo. and they are of the opin-
ion that the roads going through Pitts
burg will also be compelled to accept it
before long.
Freight Rates Discussed.
The freight officials of the Central Passen-
ger Association met in Chicago yesterday
to discuss the rate situation. 1t is generally