Omaha daily bee., 1902-03-27
INJUNCTION LIGHTLY
Freight Rate Cutting viii Continue, Says
an Omaha Jobber.
NO CALL FOR REBATES At PRESENT
when Time for Heavy Shipments Come
Again secret Rates VIII he
Given, "Iniunction or
No Injunction"

Omaha jobbers are reluctant to speak OF
the effect Of the injunction granted at Kan
sas City restraining the railroads engaged
In the Chicago Missouri river trade from
deviating from published schedules. Under
the interstate law the shipper
is as guilty as the carrier, and while some
Of the dealers will admit that secret rates
have been conceded not only once, but fire.
uuently, they studiously avoid citing In
stances. One jobber said that the i%njunc-
ton would probably drive certain Omaha
houses out OF territory where they are now
operating, not so much on account OF a
resumption of schedule rates as a necessary
change in classification. Another jobber
entered into a discussion Of the subject at
length, and said:
Il can see the wisdom Of the companies
in not Directing to the issue Of the tenn
porary restraining order and I can also see
their wisdom in preserving the right TO
make opposition to an injunction at a later
date. At this time there is comparatively
little freight moving OF the class to which
has been conceded secret rates. The Mis-
souri, river iobbers have. as a rule, filled
their houses and will not ship large lots
until fall. The managers Of these houses
are more than pleased to see rates main
tanned and will be content II they can Sc
cure no concessions for sixty or ninety
days, for they will be able to calculate
upon sales without having to take into
consideration the Chicago and eastern job
bers who might get into equal competition
with them.
at any rate within two weeks we will
be having lower rates than we have had,
according to the published tariffs, for some
time. The rail and water routes will be In
operation at that time and what goods are
shipped can be handled at a lower rate
than when the trafic is confined to all rail
routes. Take the item of sugar, for in
stance. II can be brought from New York
to Galveston by the Mallory line of steam
ers and shipped by rail 1900 miles from
Galveston to Omaha at a rate Of is cents
per 100 pounds lower than 1t can be brought
from New York by an all-rail route. 1t is
really this combination OF land and water
route which is responsible for the cutting
OF rates. The railroad managers would
maintain rates II they could, but they must
get and hold business. II we can ship from
the east at a loss OF a week in transit by
the combination route at a lower price than
we can ship by all-rail routes re will dc
It. Then the railroads will meet the rate,
They cannot be adjusting their tariffs al
all INES, cannot give the ten days notice
required by law and then get the business
h secret rate once granted must be
continued for longer or shorter time and
then a competitor seeks the business goins
to one road and proceeds to meet or beat
the rate. The general railroad condition
and the location Of lines are responsible for
much Of the cutting. too.
"If the injunction is made permanent and
effective IL will, in my opinion, mean the
destruction Of large wholesale %centers, for
unless the shippers buying In the larger
centers are conceded rates which cannot
be duplicated by everyone. OF by the people
Of every town similarly situated, the
volume Of trade will be DETECTED to places
closer to the point of consumption. Secret
rates in combination with it's water routes
have made Chicago. The same is true TO O
less extent Of st. Louis.
Take the case of packing house products
A large lot from Omaha is to be shipped
east. The transportation manager Of the
house certainly looks to see how 1t can b
shipped the cheapest. He gets rates and
decides upon his route. These rates are
below the published tariff and the goods
must be shipped Immediately. 1t is prac.
tically impossible for the company e
notify the commission Of the reduced rate;
accorded and give the ten days notice re.
quired by law, so the law Is broken, and II
will be broken, injunction or no injunc.
ton"