Kansas City daily journal., 1897-01-17
NOT DEEP ENOUGH To MEET GULF
COMPETITION.
SOME INTERESTING FIGURES.
BEARING UPON THE GRAIN RATE
SITUATION.
Exports Through the Different Ports
in 1896 rs Compared With 1895
After the Scalpers Again
Other Interesting Rail-
road News.

Chicago. Jan. l6.-The lines between Chi
cago and New York are not favorably i'm
pressed by the action of the board OF man
ayers of the Joint Traffic Association in
reducing the corn rate between the two
cities to Is cents. They say that the ac-
ton will have the result of cutting into
their revenue without in any material de-
gree increasing their business. The COM
petition from the South and southwest
has hurt the grain trade of the roads east
of Chicago very badly and they have for
a long time been asking the board of man
ayers of the Joint Traffic Association TO
put the rate where it would insure them
larger portion of the business than they
have been receiving. The roads east of
Chicago would have preferred a rate of 10
cents from Chicago to New York as one
which would have increased their traffic
and brought them sufficiently large
amount of business to have increased their
revenues, but they do not believe the last
cut will help them at all.
The action of the Joint Traffic Associa-
ton in reducing the rates on corn cents
from Chicago and the Mississippi river to
New York, Boston and Baltimore was the
principal topic of discussion among local
freight men yesterday. The action is un-
questionably aimed at the Gulf lines COM
petition, but the local feeling is that the
cut was not made deep enough to meet
II, unless the CnlcaSO lines reduce tnelr
rates from the Missouri river. The re-
duced rate of the Joint Traffic Association
is effective January 20. Upon the new ba-
sis the through rate from Kansas City
rate of IS cents TO Galveston and New
Orleans. The difference of 31a cents leaves
only about y cent in favor of the Gulf
ports as against Baltimore, as the char
ter rates from Baltimore to the European
markets are about cents under those
from the Gulf ports, and the terminal
q a. a I rnrOt laSC ut Pol nnra
than at Galveston or New Orleans. The
difference is so slight as 10 be frequently
| overcome, and under the new rate Balti-
more may be expected to get sufficient
grain to block her port, but the large re-
naming surplus Will continue to go to
Southern ports. The New York rate is
cents higher than the rate to Baltimore,
and the difference is not Offset by reduced
charter rates on terminal charges; thus a
practical difference of 3l2 cents exists be-
tween New York and the Gulf ports in
grain rates, even with the reduction de-
cided upon by the Joint Traffic Association
Notice was received yesterday of a re-
duction by the dispatch lines to offset the
cut made, by the trunk lines. With this re-
duction the Gulf lines will have actual and
hard competition. The fight will
Gulf and South Atlantic port lines, and
| the North Atlantic pors reached by the
lines Of the Joint Traffic Association will
be fSsn tho bay bRe in bdn she in 5a nos bust
is not likely that the Joint Traffic mana
gers had 1t in mind TO start a war of this
! kind, in which they could become passive
onlookers and watch dog eat dog, but that
may be the result.
| Chicago interests are greatly exercised
| over the fact that that market is losing
much of her prestige as a grain center, ano
| charges discrimination of rates in favor OF
! the other markets. The Chicago idea is
| that the rates on grain might be made W
| more on a mileage basis-the suggestion
possibly coming from the recent PROPOSE
| ton of Traffic Manager Leeds of st. Louis
| If the rates from Kansas City to Chicago
were made up on a basis of the same rate
| per ton per mile as to New Orleans, the
| combined rates west and east of Chicago
would permit of grain moving to the Nortl
| Atlantic ports under the new rate of tht
Joint Traffic Association, in competition
with the Gulf routes. This fact is inter
| esting, whether 1t has any practical i'm
| port2nce or not.