The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-07-25

thai the low rates have caused great
quantities OF freight destined from New
York 10 inland points west of the MS
sour- river - De diverted from the trans
Continental all-rail lines 10 the water
route. and the railways are to some ex-
tent helpless tc protect themselves be-
cause under The recent decision OF the
United States supreme court agreements
10 raise rates are prohibited and they
are afraid that If cpce they lower them
they CANNOT raise them again after cook
ing the Lone Star Lines goose.
Weie IL Is &c. erected that there will,
De any long maintained or widespread
rate Generalization on account Of the
Lone S;ar competition, the incident will
have served a very valuable purpose for
Colorado o. 6sm0nstI aling that rates to
pelve- are subject 10 water competition
AMI i points ne way TO break down un-
just freish. carriers by Substituting line
OF gulf Steamers II the Interests OF west
e-n Shippers.
The effect Of this plain proof that relief
may De chtsined through the guls Quite;
may resUl: eventually in the voluntary
reduction 81 rates 10 Denver over the ell
raj lines
The Competition OF the Lone Star line
WodiI tsVe more disastrous effects on
rates 4 he New York rate could apply
from inland Atlantic ea-boa-i points.
bur as the cut is all sustained by the
s1eamsni? lines. the present rate out Of
New YORK viii not pay for rail transpor-
tatln from points INLAND 70 New York
ana leave enough margin 10 pay any
thing for hauling ii 10 Galveston. II.
however. there should ever be q Joint re-
duction made by the steamers and Gulf
railway ines in combination. they could
afford 20 make in the entire seaboard and
p,ecipitate freight rate war that would
involve nearly every railway line in the
country
j. 4. peniSon. commissioner OF the Gal
weston Freigh, Bureau, is in the city.
mainly for the purpose of getting away
from the not weather OF Galveston for a
few days and enjoying The climate OF Col
orado. The Galveston Freight Bureau
is al organization representing the inter-
ests OF the warehouses and freighters.
AMI the bureau is in touch with The
Changes il freight rates and freight trou-
bles. Referring 10 the decentralization OF
freight rates between Galveston ana New
York, ocas:c ned by the sharp competition
eiStinS oe,wen the Lone Star and Ma
Iory lines OF steamers running between
the .wo ports. Mr.. Denis0n said: ITO
properly understand the situation II is
necessary to go back a short time For
the past thirty years the Mallory and Nor
gan lines. the latter connecting a, New
Orleans vltn the Southern Pacific. have
had the exclusive field for the freight
traffic OF the Gulf section. Not long
since the Lone Star company came into
the Held and placed ineo service three
fitted freight steamers. and
being new company, DESTROYS OF gather
ing ousire ass. a reduction in the rates
BY the Mallory me was offered.
The cut by she Lone S;ar company was
met by a horizontal reduction by the
older company This was met by the
Lone .'t,r line and the cuts continued un
I'll tee .resent rate IS upon 10 cent
basis for ear .1sd lots. The people OF
tee Lime Star line say hat they are in
TIE licld 10 stay. and that they will meet
any redJt Jcns made by the Mallory line.
whca is equally p@rsisten..in its declar-
a.iOn tfat the Lose star line will have
70 go. This condition Of affairs has had
the effect OF stimulating the freight bus
mess from New York via the Gulf and
Turing the present week there are sched-
lled to arrive five steamers which will
bring in the aggregate 2O10 cars o!
freight. For the Texas and Gulf railways
his means a great amount OF business.
% this freight VII be distributed through
the Central Western states and the pre-
vailirg low rates will offer strong IN
1ucemt MS for The shipmentpf the wheat
lni cotton crops by the GulS. both these
crops being al the present time about
ready TO move. To the railways this
will solve an heretofore perplsxing ques-
ton, mainly that Of empty cars which
instead % being moved one way light
viii be freIShted both going and com
ns - the states from the Cult There
5 scarcely any dousi but what these con-
1itions vii 0nec; the railroads bringing
freight from the eSeL The differential
rate in force by IA. rail- lines is higher
than the former rate maintained by the
Mallory line and as the present water
rate is greatly below this. I; les manifest
hat mich q the business will be diverted
rom the railroads The railroads are
10 cut the yates in the face %
the recent decision % the supreme court
which .or5ods them entering into agree
merits - restore rates and should the
presses: rates be reduced they fear tina:
hoy cnul1 n: again restore the prevail
ng rates. This l. a tery novel feature Of
MS rate war N tha. the RAW ways cannot
axe part without the danger % being
-equi~@f % live ~ any lower charges
nat might inaugusie. As {. is. however,
lur section ci tie country Is receiving a
aTge amount e business from the dif-
erenoes existing between the ewo steam
hip lines running out OF Galveston and
he Morgan line into New Orleans ~
Ielping matters by staying with ne Nal
Dry lire IL every reduction ;aat Trey
make. although This line mas 20 carry i,s
reight soCu: 200 miles By rail- after land
ng AT New Orlsau=
LASD Oh GkEiI STONE FACES