The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-08-17
THE RATE SITUATION.
Pee Gees Attitude Causing Some Concern
Among the Texas Roads,
FREIGHT WAR is NOT TO THEIR LIKING
annual Election of Ofncers of IN,
G., II. and $. A.-Notes and
Personals.

| Wnlle houston Is not directly interested
In the rate war being conducted by the
Pee Gee to Missouri river territory from
New York and Atlantic seaboard points.
via Port Arthur, Texas, at the same time
the situation Is acute. Houston really
should be on the water rate basis from
New York, instead Of an all rail basis; but,
should rate war open up In earnest, in
| which the Southern Pacific, with Its steam
ship line to New Orleans, should enter,
| there would be hot times, and the South
ern Pacific would hardly invite such a row.
| Rate wars are not only disastrous to the
! roads, but to the wholesaler and for that
reason there is some apprehension felt 70
cally because the Pee Gee might make
slash into Texas territory which would
compel other roads to get into the game,
which, by the way, they do not desire TO
do.
A number of lines have agreed to boycott
the Pee Gee. but should even one or TWO
connecting lines conclude that they would
participate with this aggressive and bois
ferrous young railroad giant there would
be serious trouble. The big trunk lines
do not want to cut rates, but all roads
are not trunk lines; consequently some Of
ment, by combining, are liable to at any
time cause whole lot of trouble.
The following is from the st. Louis
Globe Democrat of Tuesday. Reading be-
tween the lines, 1t is apparent that, de-
spite Mr.. Yoakum's conservatism, there
is feeling OF apprehension, to say inc
least:
Mr.. B. F. Yoakum. vice president of the
Frisco line, has returned from Chicago.
where he was in attendance at the meeting
held there last week. at which the Atlantic
seaboard and Missouri river rate situation
was discussed. He says Contrary to the
assertion made by Traffic Manager Haniey
of the Kansas City, Pittsburg and Gulf.
that the st. Louis and Chicago merchants
should place the blame for the present de-
moralized condition of rates upon the St.
Louis and Chicago lines, all shippers who
are interested and have kept pace with
the situation know that the St. Louis and
Chicago lines have stood a good deal OF
punishment and diversion OF legitimate
traffic, hoping thereby to prevent gem
eral Generalization of rates and waste of
revenue. without any criticism OF the ac-
iion of the receivers and the chief traffic
OFFICIAL of the Pittsburg and Gulf, who
must judge as to the best policy for the
management of that property, it is never
theless unfortunate to have an unsettled
condition of the rate situation at this time
from any cause.
after several years OF rate wars, NOT
withstanding the continuous efforts by the
officials of all roads west of the Misss
sippi river, through associations and other
methods, We succeeded, during the past
six months, in securing better conditions
than had prevailed for many years pre-
vious; and when we take into consdera-
ton the fact that practically all material
necessary in the operation of railroads has
advanced from 20 to 100 per cent the I'M
portance of preserving our tariffs, which
have been worked down to low point dur
ing the last few years. becomes more APP
parent. The responsibility for unsettling
the value of railroad securities, which are
fast becoming second only to government
bonds with the general investing public yof
every class, is serious one. and one Which
all parties charged with the responsibility
of managing railway properties, whether
through the courts or otherwise, should
consider we'll before arbitrarily causing
disastrous results by their action"