The evening times., 1899-08-26
Fears OF 4 RATE war
The Cutting Process Begun With
Vigor by Several Railroads.
The Chicago, Milwaukee, and st.
PauPs Withdrawal From the West
ern Passenger Association N Fac
tor-The Erie Dissatisfied-NO Tell
ing Where the Trouble Will End.

The announced intention of the Chicago,
Milwaukee, and St. Paul to withdraw from
the Western Passenger Association, the
cutting of rates by the Kansas City, Pitts
burg, and Gulf, and the consequent boy
colt of that line by the lines in the ter
ritory, and finally the cutting of rates by
the Erie between Chicago and Eastern
points, followed by a like action by other
Eastern lines, make the rate situation
among the railways both in the East and
in the West much less harmonious than 1t
was month or more ago. AS recently as
last June officers OF principal railways in
one part of the country assured the Inter-
state Commerce Commission that rates
were being maintained and that there was
! little prospect of difficulty anywhere. They
were all most hopeful and optimistic. The
argument most in favor among them was
that business was good that there was
no inducement to cut rates. All lines were
doing an immense and profitable business
and none cared to change his rates when
| full tariffs could be obtained. 1t was stated
that business prosperity was doing more
for the settlement OF the rate situa ion than
the traffic associations with their best ef
forts had been able to accomplish before
they were declared TO be unlawful.
The St. Paul in Withdrawing from the
| Western Passenger Association this week,
made the statement that the Chicago and
| Great Western and other lines not in the
| association, were getting business away
! from it, and in order TO protect its interest
| il must free itself from the restrictions Of
the association. The Erie in announcing
the cut in the rate from Chicago TO New
York 10 be made during the Grand Army
encampment stated that ii was not get
ting its share of east bound business. The
Kansas City Pittsburg, and Gulf situation
is somewhat similar, the line claiming that
| in order to compete successfully with others
il must do business at lesser rate.
1t is impossible to foretell where the
| trouble will end. Many profess con-
fdence that it will be only temporary
and unimportant matter, but 1t cannot be
doubted that general rate war may result.
St. PauIs announcement that it will with
draw from the Western Passenger Associa-
ton has undoubtedly created the greatest
CONSERVATION among its feilow-members.
and heavy pressure is being brought by
other strong lines in the West to cancel its
| notice OF Withdrawal 1t is said in de-
| spatches from Chicago that the whole mat
| ter is likely to be referred to meeting
have been taken to have such a meeting
held without delay. AT that meeting plans
| will be discussed for accomplishing the OBJ
| jeet of the Milwaukee and ST. Paul in
| way which, while free from the danger oil
Generalization, will be even more effective
| in bringing about the desired result.
| The Lake Shore, the Michigan central,
| the PENNSYLVANIA, and the Baltimore and
1 Ohio will all cut their rates to meet the
| Erie reduced rate CT $18.i5 from Chicago
| to New York, during the Grand Army En-
| campment 1t is also said to be quite
| likely that the differential lines which are
anxious to preserve their privileges will
| unite en- making a rate Of S16.4o which
| would be a cut OF 50 under the cut-rate
! of the standard lines.
| The Wabash has issued a notice of a
| cut-rate from Detroit to New York of
sl5.15 for the round trip as against SIS,
the present one-way rate. The other lines,
| the West Shore, the Laekawanna, and the
\ Lehigh Valley, have agreed to join the
ment is made that the Grand Trunk will
tc1ay authorize a like rate. Such be-
| ginning as this has before now resulted
| in a thorough and widespread demorali-
| zation in rates. and railway men are anx-
| ious lest the end of this trouble may be
| disastrous. 1t is realized that 1t would
| be extremely unfortunate IL rate war
/ should break out at this time, when bust
ness is prosperous beyond all precedent,
and when all the roads are pressed to ac-
commodate all the business that is COM
ing to them in the ordinary way.