Omaha daily bee., 1902-11-22
EXPLAIN THE RATE SITUATION
Railroad officials Tell How and Why Certain
Increases Are Made.
REPORTS CONFUSED AS 10 GENERAL RAISE
Grain Rates and Those ON Fifth Glass
Commodities GO Up, but west
ern Lines Not I'm Gen
ernl Movement.

N-~@ -NSIA oAA - HAhAuN naND
been published, a systematic EFFORT was
put forth by The Bee to get at the actual
facts in the matter, with the result nat
the story printed in The Bee Thursday
morning. to the effect that rates ON grain
shipped out Of Nebraska would be raised,
Is verified and confirmed. The substan-
tiation Of this story comes from several
sources, all official. One OF the freight Of.
icials consulted had Just returned from
Chicago, where the deliberations on rate
matters were had and he said:
December Is, a raise of 2 cents a hun
dred on all grain shipped out OF Nebraska
will become effective. The rate will apply
on grain from any point in the state to the
Mississippi river"
other local ~of1cials gave the SAME YER
sion. but not any could be found who was
ready to vouch for the story that a gen.
eral increase in freight rates on all COM
modities was to be made or was even con-
templated. On the authority Of representa-
tive officials whose names are withheld
only at their request, It can be stated
definitely that there is no movement con-
templating a general advance OF or revision
in freight rates at this time, all reports
to the contrary Notwithstanding. There is,
however, to be a restoration Of some rates,
bNs SNNN NhAo wan " w
enough to partake Of the term general.
Basis of the Action.
Some months ago, as was published in
The Bee at the time, freight rates on
structural iron, steel, baTbed wire, nails
and some other fifth class commodities,
were reduced by roads west Of Chicago,
the reduction applying on shipments to
Denver common points. The new pack
ing plant was in It's early stages Of con-
struction at Denver then and the reduction
came about through the action of a Col
orado line in cutting these rates to get
the patronage of the packing house pro-
moters. The gauntlet was quickly taken
up by all the other roads, save the Great
Western, and the result was that an eK-
tremely low rate prevailed until. by the in
dependent action by the Great Western.
the other roads, whose arbitrary action in
thus slashing the life out of these sched-
ules was intolerable discrimination against
Omaha, we're forced to elevate their rates
Just a little, but still keeping them be-
low the normal.
Now it is the rates on these commod-
tiles and perhaps a few others, which have
been similarly affected, that the western
roads propose to advance the first Of the
year, but the freight officials wish 1t dis
tinctly understood that this advance does
not represent and cannot in any way
rightly be construed in the nature OF a
raise in rates. It has simply been resolved
to put the schedules back to where they
were before these arbitrary cuts were made.
Two very prominent freight officials Of this
city have given their word for it, that so
far as the lines converging in Omaha
are concerned this and the increase in
grain rates are the only freight rate ad-
vances that are being considered. Reports
from Chicago that a general" increase in
rates is to be made, they declare, are
misleading and incorrect and must have
originated through a misconception or con-
fusion of ideas.
Eastern Lines Raise Rates.
A revision and a raise In freight rates
generally was decided on at Chicago Thurs
day. as reported in q special telegram to
The Bee, but according to the word Of an
Omaha oficial who was in Chicago at
the time Of this meeting attending an
other meeting. this raise is to be made by
western trunk lines, but not those west
Of the Mississippi river.
mot a road west Of the Mississippi
is involved or was represented at that
meeting; I can assure you OF that" said
tnlS Omclal 10 a TepOTleI lOE 1uo oeos
1--WE are absolutely not in any such move
ment. That is confined entirely to roads
east Of the river. It is not surprising
to ne that with SO much rate matter under
consideration these things should be con-
fused, but I have endeavored to give you
the facts in the case"
Adverting to the matter Of increasing
grain rates this official, whose statements
are duplicated by other freight men of
other lines in Omaha, said:
beginning December 10, the rates on
all grain from all parts OF Nebraska will
be 2 cents more on the hundred pounds
on shipments to the Mississippi river. which
is the basic point for through rates. l
I saw such a statement as this In
The Bee. II Is strictly correct. This was
decided on at a meeting held In Chicago
Just a few days ago. / was at that meet
"Will these rates remain permanently In
effect?" was asked.
"No, / should say they will not"
"Why were they put in at this timer"
For natural reasons. They simply fol-
low what has been done by lines from
lower Missouri river points.
Reasons for Increase.
''There is nothing Of great significance
in the introduction of these rates. The
is simply this; There are sum-
mer and winter grain rates. 1t costs more
to transport grain in the winter than in
the summer. When navigation on the
lakes ceases, which is usually about the
middle Of November, but in an open season
like this, later, the summer season ends
and winter begins. Consequently the
summer rates must go out and the winter
come in. This is what we are pre-
pairing for. II is no extraordinary thing.
1t will not work hardship or impose in
Justice upon the farmers Of Nebraska. 1t
will not unduly swell the Golfers OF the
railroads. but will simply equalize matters
between them and their patrons. It is not
done at this time because Of the
grain crops in Nebraska.
Let us look at this matter in a broad
light. What are the rates on grain at
present from Nebraska to the Mississippi