Omaha daily bee., 1903-05-23
UNION PAClFIC'S ANSWER
Declares It's Position Before Interstate
Commerce Commission.
ADMITS A RtBATt AGREEMENT EXISTS
sets Forth Names and Locations of
Elevators TO n of which IL
Pays Percentage for Business
Derived TherefrOm

WASHINGTON, May 22.-The Union Pa
cihc today filed with the Interstate Com
merce commission its answer to the order
of the commission institutlng an investiga-
ton OF. the alleged rebates Of the Union
Pacific to elevators.
The Union Pacific admits that 1t has an
agreement with the Midland Elevator com
pany at Kansas City. and the Omaha Ele-
vator company at Council Bluffs, both COM
panies being representatives of Peavey q
Co.. under the terms of which agreements
the Union Pacific pays ~ cents per 100
pounds for receiving, transferring ana
handling all grain which passes through
these elevators.
The Union Pacific says these elevators
are absolutely necessary to the economical
and profitable handling OF its grain bust
ness and that instead of building and oper-
ating the elevators It arranged with the
Representatives OF the Peavey concern TO
construct and operate them and furnish
the necessary facilities for handling all
grain shipped over and consigned to the
Union Pacific lines.
The company denies that the allowance
so paid is excessive OF greater than SINH
lar charges generally imposed for like serv-
ices, nor that 1t subjected other grain ship
pers to unjust discrimination, nor that II
d~iscriminates in favor of the Peavey COM
pany, nor enables the latter to obtain
transportation of their grain at net rates
or charges less than the regular tarins.
The company says the interstate COM
merce law is not being violated and asks
that the proceedings be dismissed.
Plans of Navy Changed,
The various recent changes In the Euro
.-, , 1aGAanGtan nj
the plans of the Navy department respect
ing the foreign movements of the ships
which now compose 1t. Yesterday the three
protected cruisers. Albany. Cincinnati and
Raleigh, sailed from villefranche for the
Asiatic station. where, with New Orleans,
they are to form a separate division of the
Asistic fleet. The departure Of these three
ships reduces the European squadron to
the flagship Chicago and the gunhoat Ma
chias, last reported at Marseilies. Soon,
however, they will be reinforced by San
Francisco, which has sailed from Santiago
for Lisbon. Under the changed circum-
stances 1t will depend on the president him
self whether this squadron will so to Kiel.
Both Secretary Hay and Acting Secretary
Darling are awaiting his return before
reaching a decision. The principal objec-
ton to sending this squadron to Kiel is
the insigniicance both In the number and
character of the ships Of which 1t is COM
prised.
Treaty negotiations between the United
States and China commissioner are again
moving forward and the prospect is bright
for a successful issue. Practically only
two points OF importance remain to be-
agreed on, and one of these Is the provision
for the progress of. the new ports in Man
oN,ria T1ta hoe haao ~. 1900 IL
obstacle to the contamination of the treaty.
1T is believed, however. that there will be
a compromise and the United States will
secure one instead OF three ports, the choice
falling on Tatung Keutat at the mouth Of
the Yalu river.