Omaha daily bee., 1899-11-19
WILL ABIDE BY ARBITRATION.
No Fenr that Kansas City VIII Not
Do the Honorable Thing.

No Fenr that Kansas City VIII Not
Do the Honorable Thing.
The topic of interest in railroad circles
today has been the information contained
dn special dispatch to The Bee from
Kansas City stating that the business inter-
ests of that city would not abide by any
decision OF the committee to be appointed
to arbitrate the Omaha Kansas City differ
ential on southeastern packing house prod
ucts provided such decision should recon-
mend the lowering of the existing 6-cent
differential. Officials of the various freight
departments are disposed to look upon this
matter as preliminary "bluf' on the part
OF Kansas City. George H. Crosby, general
freight agent Of the Burlington, has not
returned from Chicago, where he has been
in attendance upon the meeting OF the
Western Trunk Line committee. At that
meeting arbitration was agreed upon by the
various lines having membership in the
committee. Allen b. Smith, assistant gen.
eral freight agent of the Burlington, de-
Clined to discuss the matter.
An official of one OF the
lines interested in this arbitra-
tion stated: ~ attach but little signif-
cance to this report from Kansas City
and consider it to be merely bluff raised
ait this time to sway the opinions OF the
members who shall be appointed to the ar
bitration committee. l do not think that
such sentiment has the approval of the con-
seryative and, by far the major portion OF
Kansas City's business interests. The g.
cent differential which Omaha has to con-
tend with over Kansas City is too high. II
the case were taken before the Interstate
Commerce commission ! have no doubt but
that it would be settled Just as Omaha peo
pie desre-by cutting the differential di-
rectly in two. 1t is true that the Interstate
Commerce commission at cue time sustained
the 6-cent differential when a controversy
similar TO the recent one arose, but condl-
tions have changed so decidedly since that
time that think this former action would
be reversed. case something similar to
this was decided by the commission just
few days ago. The only difference is that
in this instance the difficulty is between two
cities, while in the case which / have in
mind 1t was between two products. There
was a 7-cent differential between corn and
cornmeal from Kansas points to the south.
In other words, the rate on cornmeal was
z cents higher than the rate on corn. As
result corn was shipped south, there con-
verted into cornmeal and the production OF
the latter was practically made impossible
In Kansas owing to this discrimination
When this matter was called to the at
tention of the Interstate Commerce commits
sion the differental was abolished entirely.
The condition regarding packing house prod
ucts to the southeast is the same. AS long
as Kansas City enjoys dfferential cents
lower than Omaha local packers are vr-
tually shut out from doing business In the
southeast.
"No one is In position to state what the
findings of this arbitration committee will
be. 1t may decide that the present differ
ental shall remain. or it may conclude to re-
duce it, Whatever the result. Kansas City
Is in honor bound TO abide by the decision
and 1t is childish to spread the impression
in advance of the choosing Of this committee
that lower differential will meet with op-
position"
The Kansas City Journal, which is gem
orally believed to reflect the conservative
sentiment of that city in this question
makes this unqualified statement: There
will not be another war between Kansas City
and the Burlington anent the differential on
packing house shipments to the southeast"