Omaha daily bee., 1903-06-04
MALLORY LINE STlRS RIVALS
Puts in Differential from Atlantic Coast to
Omaha Through Galveston.
TAKEN AS BANTER AND MAY CAUSE FIGHT
Railroad Men See In Action Serious
Injury to Western Roads and
Think These Ought
20 Resist IL.

The Mallory Steamship company has
thrown down the gauntlet to the Morgan
coastwise line and the railroads OF the
west which patronize the latter route by
publishing a through tariff from New York
and sGaboard territory to Missouri river
points as far north as Omaha via Calves
ton, in which 1t uses a differental con-
ceeded to IL by other differentials or At
lantlc port lines several months ago 10
st. Louis via Mobile. The action OF the
Mallory line is interpreted in certain quar-
ters as a step toward the Generalization
of freight rates and therefore an infringe
ment upon the interstate commerce laws
which may be punished under the inter-
state or Elkins law. 1t is expected to
cause serious trouble unless rescinded very
soon.
The lines mostly affected by this action
OF the Mallory company are the Burlington,
Milwaukee, illinois Central and Northwest
o:n, all prominent Omaha roads. The thres
latter nave the greater grievance, as the
immediate effect OF the Mallory tarin NO aid
be to divert traffic to that line which these
roads otherwise would get Therefore IL
the tariff Is not withdrawn soon 1t Is
thought these roads may combine and at
tempt to force recession on tho part of
the Mallory line or institute proceedings
for redress through the courts
While the Mallory limo was granted a
differential via Mobile to st. Louis, this
rate which II now announces for Omaha
via Galveston, It never has had a differ
ential via Galveston, the port it is so in
dustriously seeking to develop. 1t runs
four steamships a week TO that p0ri.
This is not the first time trouble Of this
sort has arisen with the Mallory lire 1t
has frequently clashed Of late with differ
entail lines, which have made serious ac-
cusations Of unfair rate cutting.
AS the Southern railway was the prime
agent OF securing the concession via Mo-
bile for the Mallory line, and as 1t Is held
the Mallory line has failed to colHne IT.
self to the advantages gained under that
concession, certain powers are seeking to
impress the Southern with the fact that It
should take the initiative IN bringing the
Mallory line to time and inducing It to
withdraw its tariff to Missouri river points
via Galveston.
The difrerential via Mobile TO st. Louis
was granted the Mallory line through tho
mediation OF the Southern railway, which
controls the Mobile & Ohio. This rate was
to apply from New York. Baltimore and
Philadelphia. On the first four and most
| important classes of articles the rates that
| have stirred the differential lines are, first
| class, tl39; second, S0S; third. 81 cents:
| fourth. 81 cents. The comparative rates OF
the differential lines are. respectively, sl.27.
y.l2, 81 cents and Ga cents
Obviously, II the differentlal lines stand
by their rates they will get the short end
OF the bargain. for shippers very naturally
will take the cheapest rates they can get.
In such an event the Milwaukee. North
western and Illinois Central will, It is
pointed out, have serious and equal cause
| for complaint as they have no Galveston
outlet or connection. With rates by that
port lower than they are able to make by
all-raH or lake and rail routes It is easy
to see where they will come out in the
matter OF getting new business or holding
| their old.