Omaha daily bee., 1902-11-20
ROADS RAISE RATES
They Agree to Make General Raise in
Grain Freight Charges,
COST FALLS ON FARMERS OF NEBRASKA
Increased Revenue Will Add More to Large
Railroad Earnings,
RAISE GOES INTO EFFECT DECEMBER IS
Action is Decided on at Secret Meeting
Held in Chicago.
BOARD OF TRADE OPERATORS INTERESTED
AlSE GOES INTO EFFECT DECEMBER IS
BOARD OF TRADE OPERATORS INTERESTED
Estimated that Action of Railroads TO
Increase Their Net Earnings WIN
Cost Nebraska Farmers
Millions of Dollars.

AAt ioliAbauo NbhNtIbluk IN OHdud nave
decided to levy a tax upon the farmers
Of Nebraska because Of their abundant
crops in order that the unprecedented earn
ings of the roads may be made still larger
The roads have entered into an agreement
to raise rates on grain. A general revi-
sion OF tariff schedules will be definitely
decided on within a few days and made
effective December Is. This information
comes from authoritative railroad ofncials
1t also is confirmed by prominent grain
dealers Of Omaha who have had advance
tips from official sources
This action was decided on at secret
meeting Of traffic men from the various
western roads involved recently held in
Chicago. The matter has been guarded
with utmost care and up to this time has
been successfully concealed, the railroads
realizing that it would not benefit their
case any to have It prematureIy disclosed.
furthermore the plans are not yet COM
plete.
For some time there has been sus
picion that the railroads would seek to
contrive some means of increasing their
share Of prosperity so materially stimu-
lated by the enormous crops of the west
this year and it has been hinted in this
connection that the ultimate result would
be material increase in grain rates This
action will have a tremendous effect in
Nebraska, whore the grain crops are so
abundant
Asked about the pending increase Of
rates local freight official said to a re-
porter for The Bee yesterday:
ut is correct that the roads have de-
cided to raise rates. This was determined
at meeting in Chicago a 'ew days ago
But how much of an advance will be made
has not yet been settled. That will be de-
| cided within a few days. I can tell you
positively, however, that the new schedules
are to be made effective December 15"
Will Swell Railroad Earnings.
THAT will have a vital effect upon the
freight earnings OF the railroads, won't
/ itf" was suggested.
! I've certainly hope So" was the reply.
''Yes, indeed, IT will swell the revenues Of
the railroads to handsome degree"
| WAS there any complaint that these
rates were too low before?" was asked.
"I didn't hear any particular complaint
Of that kind. No, but the railroads aren't
going to overlook an opportunity like this"
| Nebraska this year will produce in
round numbers 225 900 900 bushels of corn
GO 900 bushels of wheat, So ,0OO, 900 bush
els of oats, S0,0O0.000 bushels OF rye and
900 bushels OF barley. It is esti-
cent of the wheat crop. or 45 900 900 bush
els, will be shipped out of the state. that
25 per cent OF the corn crop, or So ,250, 900
bushels. will leave the state and that about
IS per cent of the rye will also be shipped
abroad
Since the exact amount of increase has
not been determined, It is not possible to
compute the revenues of the railroads
which will accrue as result OF this
process. But 1t is safe to say they will
reach the millions, which will mean that
millions of dollars will be taken out OF
Nebraska which would remain in the state
were the farmers and grain dealers here
not compelled to pay the extra charges
for shipping their products. It has been
intimated that the amount Of increase will
be cents per 100 on all kinds of grain.
In order to form some sort OF idea as to
the magnitude OF the situation II win be
necessary to quote some Of the existing
rates.
Cost to Liverpool.
According to schedules disclosed by q
freight official yesterday. It cost 81 cents
to send a bushel of wheat from Omaha Ia
Liverpool. This tariff is composed by
uniting the rate from the Missouri to the
Mississippi river the rate from the latter
point TO the Atlantic seaboard, and from
there to Liverpool or London. whichever
point of destination is used. The rate or
wheat from Omaha to the Mississippi II
16 cents per 100 TO New York. Boston oI
Quebec 17h cents, or TO Baltimore 14ih
and to Philadelphia or Montreal 1bH
cents; from all American ports 70 Liver,
pool the rate is the same, l71h cents, ant
to London IA 80 cents per 100. The mini.
mum through tariff. according to thes,
rates, which could be fixed on whea
shipped from Omaha to London, would b'
451 and to Liverpool 4s cents. The maxi
mum to London would be 4s.1 and tn,
Maximum to Liverpool 81 cents. The ratt
on corn and other grain from Omaha Il
Mississippi river points is l3 cents and th'
through tariff is constructed on a CORE
! spending basis.
It would be impossible to determine ac
curately what amount of increased earn
! ings the railroads would realize OF thes
! advanced rates without knowing tn
amount OF grain to be shipped and tn
amount OF increase in the schedules, fact
J. which necessarily must remain In the DARK
Besides, from points in Nebraska west 4
: Omaha a proportional rates Of a graduate
= scale prevail and these are indefinite a
: this time. From Papillion, Millard. Elk
:. horns, Waterloo. Valley and one or tw
other towns in that section the rate I
Mississippi river points is about l cen
n more than the Omaha rate. But withou
|. definite information as to the extent OF in
j. crease in freight tariffs and the amount q
n grain shipped II can readily be determine
that the railroads II allowed to carry ou
n their present plans, will add gigantic sum
n to their earnings, already unprecedentl
large.
u Eject on Board of Trade.
= It is certain that this scheme OF III
= railroads did not get into board OF trad
gossip yesterday or become generall
j. known through any channel few graf
men did have tips, however
W Referring on tine matter. William r. Walsl
N manager for the f. II Prince compan
M in the Board OF Trade building, said;
n. 1--WE learned during the day on the moi
reliable authority OF this pending chang
IN the grain rates. You have the riEt