Omaha daily bee., 1902-10-10

bought by Paxton q Gallagher OF omaha
went out Of New York IN this way. and
last wednesday another lot OF the same
amount for the same firm went forward
without being carried az the tarin rate.
The hrst went all-rail and was contracted
by the Traders. Dispatch, which II said 20
have divided Il between the isehigh Valley.
the Nickel Plate. the Lake Erie y West
ern, the Iowa Central. the Chicago a North
western and the Chicago, Milwaukee a St
The second was shipped and also taken by
water from Buffalo to Milwaukee. whence
Il will be carried by the ST. Pau 10 destina-
ton.
II develops or Investigation that In order
70 give a rate lower than tariff the New
York brokers In billing the coffee consigned
4 to themselves, with Portland, ore, as its
destination. When IT reaches Milwaukee
this billing Is to be suppressed and the
treight reconsigned to Paxton & Gallagher,
II properly billed the rail and lake rate
w me % M esnts adde5 5'y for M sbs ra 3s % Se 4
to Omaha. The rate to Portland Is "a cents
per 100 pounds. Deducting Is per cent, the
give ISL. cents from Milwaukee TO Omaha.
which, plus the "a cents to Milwaukee. gives
a total that IL less than tarin.
With the all-rail rate of 30 cents 10 Chi
cago Il Is figured that the cut made by the
himiam combination and manipulation was
Whether the lines that were therefore
unable TO land the business will make any
trouble has not developed. Possibly they
may bottle their wrath and conclude that,
as the general situation has not been dis
turbed, IL Is not worth while to undertake
to do more than protest against the frreg-
ular tactics employed.
This Is not unlikely as other lines than
| those named have not been above resorting
TO similar sharp practice In order to gain
the favor of shippers and might have done
so in the particular case mentioned II cir
cumstances had afforded occasion for so
doing. To make much OF a row might lead
TO other disclosures, and a general exposure
not altogether pleasant OF credltabie.
But there is still another instance of the
same character as that described which
serves TO show to what lengths railroads
will sometimes go in these matters. 1t is
charged that for at least three years the
Chicago, Milwaukee & st. Paul has been
able to ship pig iron for its own use from
Canaan, Conn, to Milwaukee at less than
the actual rate, by employing the same
coffee, and giving the whole. business
about 800 tons a year, to a single line.
1t is done under an annual contract, and
the fact that the time Is at hand for a new
deal and there is something of a scramble
TO land II is probably in some measure re-
sponsible for the fact that the st. Paul's
privilege has become a subject. OF common
talk among traffic officials who are dis
posed to break up the practice II they can.
At one time the Erie had this particular
trafic, but lost 1t through inducements Of
fered by the Merchants Dispatch. which
has controlled 1t ever since. 1t ls custo'
mary for the purchasing agent to consigr
shipments to himself at a Pacific coast
point which II never reaches. The saving
Il p Sseis sh6ss sh ton' and Il tSis IS seco aS asSS'
by changing the billing and diverting. thC
freight at Chicago to Milwaukee, the hau
to destination. being over the st. Paul
charges the total amount would be $40 pei
gross ton, but by the diversion mentioned
this Is reduced as previously stated at leas
81 and perhaps more.