Omaha daily bee., 1902-02-15
MERGER AND LOCAL TIE-UP
Peel B,tvss, ohiOsEs-omahs Line F'ro,'
Hand Of Unisn Pacific.
ILLINOIS CENTRAL THEN BECOMES OUTltT
History Of Combination with North
western RecOunted by Overland
OmcisI TO show How Indi-
cations Point nc Present.

OmciaI TO show How Indi-
cations Point at Present.
A week ago a Union Pacific official an
nounced that the Northwestern-U Union Pa
cihc traffic agreement would soon be aban-
doned and that the Illinois Central would
assume the place held by the northwestern
in such an agreement. The same day a
fast growing rumor of a merger between
the Northwestern. Rock Island and Chicago,
Milwaukee q st. Pau roads took definite
shape and was served to the public in the
prints with great prominence and consid-
cradle ado.
Though the first of these moves Is much
the further toward contamination. that each
Will be accomplished is widely believed in
Omaha. as each explains and almost COM
pels the other. The imminence of such a
great wave Of reorganization and recon-
struction of railroad relations which so vi
tally affect Omaha has started a thorough
upheaval and rehearsal Of the long-disputed
terms Of the agreement between the Union
Pacific and Northwestern.
There have always existed strong differ
ences of opinion as to what was the impetus
OF this agreement, what its real extent, pur-
view and Importance, and how strong it's
binding power. There are many different
versions. Most railroaders have maintained.
however. that the Union Pacific would never
have entered into such an agreement had
not the Northwestern used as a club its
possession of the Fremont, Elkhorn & Mis-
souri, Valley line, running out to Casper.
Wyo. .
Threatens Coast Traffic
With Ogden but a comparatively short
distance away to the southwest, the North
western was able logically to threaten a
line Of its own to the coast II the Union
Pacific would not make the overland ar
rangement. So the Union Pacific gave in,
though other interests impelled it in an
other direction. At least, this is a common
belief In regard to the matter, and 1t Is
apparently supported by the fact that till
the Northwestern secured the Elkhorn II
could not get even so much as a hearing
with the Union Pacific.
A prominent Union Pacific ofioial, how
ever, launches a totally new explanation.
He is a man who lived through the entire
affair right in Omaha and he says he. is
familiar with the situation from the ground
up.
THE Casper line had nothing whatever
to do with that agreement says this off,
Cldi, anu Slmply IOT LuGs TthSOu luhl lu6
overland trafic was never thought of when
this arrangement was first made. 1t was
the Denver business that the Union Pacific
was endeavoring to care for and it was
with this end only in view that the agree
ment was made. The overland affair was
the outgrowth OF the other and did not fol-
low for some time.
Due to Denver Trafic.
why did the Union Pacific take in the
Northwestern? That's something which is
still a closed secret. We do not know. But
this was the way 1t happened; The Union
Pacific, as a matter Of fact, having just de-
termined that the Denver matter must oe
attended to Immediately, had made the
offer of such a connection to the Chicago,
Milwaukee & st. Paul road. The st. Paul
people did not accept at once. They were
not very anxious and we're considering 1t.
Meanwhile President Marvin Hughitt Of
the Northwestern heard of the offer. He
rushed to Omaha, was closeted with Presi-
dent Charles Francis Adams Of the Union
Pacific for not more than an hour and came
out and announced that the Union Pacific
and Northwestern had made the agreement.
It was all so sudden it took our breaths
away. but IL was done. and it hiss stuck.
Every one thought the s Paul road
would be the second party to the agree
ment. II was the logical first choice, for
| the same interests that dominated 1t con-
trolled the Union Pacific, the Rockefellers.
And the situation is still the same today,
by the way, despite all they may say.
Rockefeller interests are dominant in the
Union Pacific.
However, the Northwestern was a
logical second choice. for physical reasons.
It does not get into Kansas City, as the
other roads do, 80 Omaha Is its natural
outlet. Just what led to its choice in the
agreement. however, l cannot state.
Freight Tramc Distribution.
There is another great misunderstood
ing relative to this arrangement. That is
in regard to it's real extent and Importance.
On the passenger side, Of course, 1t Is alb
solute and complete. Through trains make
1t SO. On the freight side it does not
\ mean so much. AS a matter of fact the
freight has always been pretty we'll dis
tributed between the st. Paul and North
western, and since the Illinois Central has
come that has had its share.
81 will go further than that. I will say
that in all those years since the agreement
has been in effect the st. Paul has had
even more OF the Union Pacific freight
business than the Northwestern Coming
west they have broken about even, for In
that case the Northwestern derives an ad-
vantage in soliciting from the fact that It
can cite its close arrangement with the
Union Pacific. This has Its effect. But,
going east. the St Paul has had a little
the best Of 1t always. AS one example.
there has been many a month to my knowl-
edge during the fruit seasons when the
Northwestern has carried the Union Pacific
loads from California on east from here
three days in the week and the st. Paul
had the other four.
This state of affairs has not been brought
about by the Union Pacific. That road would
doubtless have made the balance OF division
hang the other way II It could. But It sim
ply could not control its freight. and the
St. Paul stood stronger than the North
western with people who could control It.
Indicated by Character of Freight.
81 can prove this. The great bulk Of the
Union Pacific freight is commodities Of
three descriptions-grain, ores and stock
Grain comes to the Omaha elevators, so Is
out OF Union Pacific power here. Ores &c
to the smelter and is likewise lost. The
smelter can ship the product out over anJ
road IL pleases. Stock no road can control
as has been often proven. It is a commod'
ity that can readily be moved nifty or 100