Omaha daily bee., 1903-05-12
UNION PACIFIC UNDER FIRE
Called on to Show that Discriminating Rates
Are Not Allowed.
GRAIN FIRM is SAID TO Be FAVORED
Railway Uses Peavey's Council Bluffs
Elevators and f. Alleged to
Pay Unduly for This
Privilege.

| WASHINGTON, May 1.-THE Interstate
! Commerce commission has begun an in
| vestigation to determine whether the pay
| ment or allowances made by the Union
| Pacific to Peavey g. Co. of Kansas City
and Council Bluffs for grain elevator fa-
/ cilities and the grain rates made to that
| concern are in violation Of the interstate
| commerce law.
| The Union Pacific is made respondent in
| the proceedings and has been ordered to
| file full answer to the charges by May Is,
and to satisfactorily explain the alleged
rebates at a hearing to be called hereafter.
The commission in ordering the investi-
| cation says II appears that the Peavey
company is purchasing grain at western
points OF origin and shipping over the Union
Pacific to Council Bluffs and Kansas City
and through those points to eastern dcs-
! tfnations; that the Union Pacific uses the
elevators of Peavey & Co. for handling and
transferring grain. for which facilities 1t
pays certain stipulated rates, generally
amounting to ~ cents per 100 pounds.
These rates, 1t is charged. result in large
payments or allowances by the Union Pa
cifc to Peavey & Co. and apparently are
excessive and greater than charges gen.
orally imposed or allowed at Kansas City,
Council Bluffs and other elevator points.
The commission says II appears that the
rebates nre not only on the grain of Peavey
| g. Co. but on grain of all other shippers
passing through the Peavey elevators, ami
that the allowances may subject other grain
shippers to unjust discrimination and un-
just transportation charges, and that they
| enable Peavey & Co to obtain net rates
less than the regular tariffs
Roads Deny Excessive Profits.
The International & Great Northern and
the St Louis Southwestern railways have
filed with ih+ Interstate Commerce COM
mission answers 70 the order calling for
Information regarding class and commodity
rates from st. Louis to Texas common
points Both lines admit making certain
advances. but deny that the advances were
material or that they were made to earn
unreasonable revenue. The International
& Great Northern says that its cost Of op-
Grafton has been increased; that to recon
struct the bridge equipment will cost up
wards of 100000 and AYERS that its net
earnings for the three months ending
March 81. 1903. were largely decreased. The
other road makes similar allegations.
Utah Lands Thrown open.
A portion of the lands In the proposed
Gunnison forest reserve in Utah, which
were withdrawn from entry In May 1902
have been restored to the ordinary public
domain, having been found to be unsuited
for reservation purposes. The restored
lands include about 315 square miles lying
directly west of Nephi. .,t..sfi
Cattle Disease Breals out Afresh.
The State department has notified the
Department of agriculture that the foot
and mouth disease has again broken out
in Argentina, which has prohibited expor-
tation of animals from that country. Sec
retary Wilson views the outbreak with
great concern and says IL the disease once
gets foothold on the open ranges in Ar
gentina the results inevitably must be SER
ious to the live stock industry there.
Secretary Wilson today received word of
: fresh outbreak of the disease in a herd
! located at birmingham, Mass. It was be-
lieved the epidemic had been wiped out in
New England Secretary Wilson said to-
day he had contemplated lifting the QUAR-
I antine altogether from New England in a
, fortnight, but that action must now be
postponed Indefinitely. The quarantine has
been lifted from all the states originally
. involved except Massachusetts and New
Hampshire and 1t is impossible to foretell,
l particularly in view of the approaching
warm weather, when the restrictive meas
I ures against those states can be removed.
The secretary of agriculture has raised
> other ruminants and swine in Rhode Island
which was imposed by the order of Novem-
: Der q. 1902. The Department of agriculture
announces that all animals affected with
foot and mouth disease in the state have
5 been destroyed and the premises occupied
by them thoroughly disinfected
samOans Celebrate Annexation.
I Commander Underwood in charge OF
the naval station at Tutuila, reports that
the Samoans celebrated April H. the third
Z anniversary of the raising OF the Amer
lean nag at Tutuila, as a public holiday
with games and dances.
Twenty-six of the recently appointed
members Of the army general stan as
sernbled at the rooms Of the War College
board today. The correspondence between
Secretary Root and General Young re
: garding the stan was read and there wa.
a brief discussion of the duties OF the
: stan. Tomorrow the officers will lister
e to informal talk from General schwan
% retired. who has given the matter muel
e attention. The following day Genera
s Bliss, who is TO be a member of the gen
/ eral stan, will address the officers 7.
s is expected that a number OF boards will
: be created 10 consider various matters
n pertaining to the army
Arkansas Stalled TIL Spring.
y Lieutenant Chester, one of the watcl
I officers OF the monitor Arkansas. arriv
e ing at the Navy department today from
% st. Genevieve, Mo-, where the vessel 1,
lying, reported that. In his Judgment 4
will be impossible for it to make its wa,
down the Mississippi till next spring. nm
less an unexpected and unreasonable fioot