The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-10-12
RAILROADS.
G. 7. A BIG FACTOR
Easter Trunk Line Officials Won
dering How to Meet G.. T.
a., Competition.
Meeting Of Representatives Of the
Two Interests to Be Held
Very Soon.
EpeoiaI to The Journal,

New York, Oct. lat is believed
in we'll informed quarters that the adj
vance In the rates on packing house
products carried on the trunk lines
is the result of an iron-clad agree
ment between the trunk lines and
the packers. 1t is stated that lump
sum has been paid to the shippers
of Chicago on condition that they con-
sent to this advance In rates. The
purpose of such ali arrangement, or
course, Is the establishment OF rate
schedule on trunk line freight east
bound at higher rates than those that
have prevailed.
Trunk line officials, Of course, fatty
and stIenuously deny that any such
agreement has been reached. They
say they are not evading the Elkins
law in any way. This protestation Is
not at all convincing. A rigid 1nves-
tigatior Of the rate situation on the
trunk Ines is convincing of quite the
opposite. There is an ironclad agree
ment hetween these railroads for the
maintenance Of level rates. and unless
all signs fail there is collision be-
tween he big shippers of Chicago and
the secret committee Of the trunk line
association.
Therate situation on the trunk lines
Is notat all serene. This statement Is
made in spite Of fiat official state
ment from trunk line OFFICIALS. Be-
tweel the American trunk lines there
hithrto neglected and ignored factor
in tie seaboard transportation s1tua-
ton has within the past year made
itser felt most keenly. The factor Is
Grand Trunk. 1t is now an old story
tha Grand Trunk has crippled the
gran carrying trade between Chicago
ant the sea on the American trunk
Inns. It is now an open secret that
Grind Trunk intends to bid in the
sane way for other grades of freight.
he announcement made by, your
correspondent three weeks ago on the
authority Of a Canadian railroad Off
cia was the first distinct and posi-
tiv statement on this point. Since
thu. time signs have been numerous
tina the trunk lines are fully awake
trunk line association, 1913 Liberty
street,N. Y. there have been half 6
dozen Meetings Of traffic officials with
in the past two weeks. So far as pub
lie announcements go the only mat
ter tha has been settled Is the com
bound iates from the Atlantic sea
board nd New Orleans to Mississippi
and wetward points. 1t Is very wei
known, however, that the most earnes
representatives at these meeting
have hen devoted to finding a wa!
WHEREBY the competition Of Gran'
Trunk ind the lake route may be me
without the necessity Of cutting rates
A rae war with Grand Trunk is tn
last ting desired. The financial in
teresbNehind the trunk lines will no
allow a rate war. The power Of tn
traffi department. on these railroad
is sephdary to the power OF the In
teress that own their stock. Thes
intaTsts are at the present time at tn
endof a year of terrific depreciation
IN re market value of their securi
tie, They are not willing to alloy
the traffic departments to enter int
an struggle Of rates that would sti
f1ther curtail the market credits c
~ trunk line owners.
it can be stated fatty that the trun
lie traffic officials have not yet bee
pie to devise plan whereby tn
Smpetition of Grand Trunk can b
1ccessfully met.
IT is broadly limited that an agree
nent may be reached within the ne,
year between the American trunk lir
association and Grand Trunk, where
by the latter will be permanently 81
cured In it's leading position as a ca
,rier of certain grades of freight
the seaboard on condition that rat
on other lines Of freight are rigo
ously maintained. 1t Is stated that
meeting. of four people, will short
take place in either Detroit or Buffal
American trunk lines will meet tv
Grand Trunk traffic officials in {
effort to arrive at working agre
ment. A deadlock is, of course, 20
sible.
Grand Trunk officials are peculiar
reticent. They evidently have instru
lions from headquarters to say not
ing at all that will indicate the tr
situation. President Rivers-Wilson
his address to the stockholders at t
meeting in London this week hint
that the position Of Grand Trunk
a carrier of trunk line business
likely to be greatly strengthen
within the next twelve months, a
promised that unless all signs fall t
company will be in a position to
crease its second preferred divide
within that time. This statement, a
the recently authorized S23,900.000
guaranteed stock, may be taken
pretty sure indications that there