The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-12-23
RAILROAD NEWS.
What the "Military Rate Poop'
Really LIS.
Result of the Bitter Rate w ar
in 1898.
SANTA FE MAN TALKS.
MIA FE MAN TALKS.
Denies the Alleged Santa Fe-
Southern Pacific Deal.
Says the Southern Pacific's
Withdrawal Is Bluff.
What is the military rate pool?

What is the military rate pool?
Dispatches from Chicago have re-
Gently had much to say about it Ac-
cording to these, dispatches, the MEM
bers of the Western Passenger associa-
ton are comforting on the subject; the
Southern Pacific has announced its
withdrawal from the pool" and the
conclusion is drawn from this action
that the Southern Pacific and Santa Fe
have entered into deal by which they
expect to control the transcontinental
military travel
In order to find out Just what rail-
road men mean by the military rate
pool, and the rumored deal between
the Santa Fe and Southern Pacific, a
State Journal reporter yesterday inter-
viewed one of the officials of the Santa
Fe road. He said:
newspapers call this agreement a
pool In the eyes of the law, how
ever, it is not q pool. 1t is not even
nouncement made independently by
various roads that each expects to do a
certain thing.
THE military rate was brought into
existence many years ago when rail-
roads were being built in the west.
When road built through government
land, and received a land grant from
the government, it entered into a. con-
tract with the government to allow
certain rebate on the business of haul
ing military equipment and soldiers of
the west have an agreement of this
nature with the government. So if the
government desires to send soldiers to
some point out west 1t may be neceS-
sary that the soldiers travel over sew
eral different lines, each line allowing
a certain rebate. This is the military
rate. 1t is given only upon order
issued by the proper government au-
thority.
Some roads are able to make larger
rebates than Others, because of their
ont mt rxrffI he ant M
meet these roads, their competitors
found it necessary to cut down the rates.
The result was a rate war during 1898
and 1899 in which soldiers were hauled
from Chicago to San Francisco for SIS.
and every road lost money on the deal.
Representatives then met and agreed
to maintain rates. and pool the pro-
ceeds, each road to be given its share.
This meeting and agreement, however,
took the form of merely formal an
nouncement by each road that it had
decided to do such and such a thing.
The result was the same, but the law
was complied with.
by reason of its contracts, the South
ern Pacific was able to get a great bulk
of the business before the pool was
formed. Recently it has had reason to
suspect that the northern roads were
making secret reductions in the agreed
rates, and finally to force the northern
roads to abide by the agreement, it an
nounced that after January it would
withdraw from the SO called military
rate pool
Many well informed railroad men
believe that this action on the part of
the Southern Pacific is mainly a bluff,
intended to scare the northern lines in
to obedience. 1t is not generally be-
lieved that the Southern Pacific wants
to break up the military agreement. 1t
simply wants to stop secret cutting.
LAS far as any possible connection
between the Santa Fe and Southern
Pacific in this deal is concerned, the
story is wholly false. 1t is claimed that
by abrogating the agreement, the South
ern Pacific and Santa Fe would prac-
tically control the transcontinental mil
itary business of the country. But am
certain that it is not the desire of the
Santa Fe to break up the agreement,
and 1 believe that the Southern Pacific
is only acting in this matter for the
purpose of protecting its rights think
the military rates will be maintained"