New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-08-27
RATE WAR STARTED.
Heauy Cut by Union Pacific Met by
Missouri Pacific.
IBY TELEGRAPH TO THE TRIBUNE ]

Chicago, Aug 26.-The Union Pacific Railroad
Company yesterday announced a reduction in
the rates wire and nails from Chicago 10 Col
orado common points. The normal tariff is II
cents q hundred pounds. ON and after next
Monday the rate will be made IL cents by all
the lines. The reason given by the Union Pa
cific for making the cut is that the movement at
present is unusually light. and that a lower fig
ure is necessary 10 stimulate the business. II
was stated by agents Of other lines. however.
that the reduction was in the interest of one of
the big producing companies, which is said TO
have four hundred to five hundred carloads of
wire ready for shipment to Colorado points from
Pittsburg and Chicago
Later in the day the Missouri Pacific
nounced corresponding reductions from Pueblo
to Missouri River points. It's rate will he %
cents. This move said to be in the interest
of the Colorado Fuei aid -fr0n company.
The Union Pacfc's big reduction. and the put
ting in effect OF correspondingly low rates by
the Missouri Pacific, is believed to be the begin
ming Of a bitter fight for supremacy between
the Could and Herman interests The Ameri
Steel and Wire Company. in the interest of
which the Union Pacific is said To have made
the reduction. is under Harriman's care. while
Mr. Gould is largely interested in the Colorado
Fuel and Iron Company. for the protection of
which his road met the rate
An uneasy feeling regarding the general rate
situation is apparen. in railroad circles here,
aud fears are entertained that If this trouble
between the Gould and Hartman interests is
not speedily settled. general Generalization in
Western freight rates may result. The roads
want business to keen up their earnings. and
to get it some of them VIII not hesitate to cut
rates.
AT a meeting Of Western traffic officials I'm
Chicago to-day. efforts made TO limit the
new rates to September 10. and provide that
they then should he withdrawn. The repre-
sentatives of the Could roads however. ridi-
cuIed the proposition. They said they put III
the reduced tariff to stay and intimated that it
was the aim of the Union Pacific. when it an
nounced the cut, to take the four hundred or
five hundred carloads of wire and nails OF the
American Steel Wire Company To Colorado
points and after getting them there agree 70
a rcetoration of rates II the Missouri Pacific
sticks to it's present position, the Chicago Mis-
souri, River lines will be compelled to reduce
the rates from Chicago to Kansas CITY
There were predictions in this city that disas'
trous rat war affecting all iron and steel products
would follow the Steel and Wire Companys move
with an enormous resultant loss To the railways
lut the stocks OF the United States Steel Corpora
tion and the Colorado Fuel and Iron Company
closed at fractional net advances. although under
tie best of the day. The Colorado Fuel and Iron
Company is controlled 10y the Rockefeller-Gould
interests and John D. Rockefeller. who Is asso-
ciated with George ]. Gould In that company, is
commonly reported in the Street to be now the
dominating interest also IN the uhlteo states steer
Corporation.
A new pool in steel products formed yester-
day in this city The pool is the Structural Shapes
Association formed to special shapes which
not been covered closely under the Structural
steel pool The agreement becomes operative
September l.