The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-08-30
RAILROAD NEWS.
Railroads Have Become Involved
i'm Steel War.
Effort to Crush Colorado Com
pany Brings Rate Struggle.
GOULDS MEET CUT.
Western Fuel Concern to In
wade New Market.
Gossip and Matters Of Interest
I'm Railroad Circles.

The United States steel corporation
and the Colorado Fuel and Iron COM
pany are said to have entered into a
bitter struggle, in which millions will
| be spent, if need be, to gain suprem-
acy in the markets of the west.
The first open move in the game
was made Thursday, when all the
roads west from Chicago and the
Missouri river announced a reduction
of more than 40 per cent in the rates
on steel wire and nails. This was fol-
lowed by a corresponding reduction
on the same commodities east bound
from Colorado, maze by the Missouri
Pacific railroad.
In its effort to wrest millions of dol
lars worth of business from its in
dependent western competitor, and
possibly to destroy or assimilate the
Colorado concern, the steel trust thus
far has had the aid OF western roads,
except the Gould lines. The western
roads are accepting eagerly the new
business offered by the trust at re-
duced rates with a view of flooding
Colorado with its products.
The Plan of the steel trust is subtle
and far-reaching in effect. Under the
direction of J. 5. Keefe, traffic man
ager for the American Steel and Wire
company, a member or the steel trust,
agents are said to have been sent into
the Colorado market, where they Sc
cured tentative contracts for the de-
livery of between 1900 and 10000
tons of steel wire and nails, at prices
considerably under those quoted by
the Colorado company
With these contracts Mr.. Keefe
called on the traffic managers of roads
west from Chicago, prepared to de-
liver to them between $4,000 and
100000 worth of business in a lump,
provided he could get rate that suit
ed the purpose of the trust. ]. c.
Stubs, traffic director of the Harri-
man lines. was one of the first ap-
preached. Mr.. Keefe said nothing of
the evident purpose of the trust, which
was no concern of the railroad man.
1t soon was agreed that if all western
lines would join, the rate of II per
100 pounds on the products should be
reduced to 40 cents.
A meeting of the highest traffic Of
ficials was called in the Office of Ben
Winchell, president of the Rock
Island, and the proposition was laid
before them by Mr.. Stubs. Deter
mined opposition developed on the
part of the Missouri Pacific, the rep
resentative of which declared the 9TH
er roads were fighting the Colorado
Fuel and Iron company, commonly re-
puted to be controlled by the Goulds,
who also own the0 Missouri Pacific.
The latter road secures the lions
share of the fuel company's traffic.
Mr.. Stubs and other traffic officials
declared they knew nothing of a
fight, nor did it concern them. To
the railroads it was a purely buS1-
ness proposition. There was an enor-
nous amount of new business which
could be loaded into cars, which were
now being hauled westward empty,
and which could be made to earn a
big revenue under the conditions.
The case was put thus by one of the
traffic men, and all the roads interest
ed except the Missouri Pacific then
agreed to put the required rate into
effect, with the understanding that the
hISinaSS a distributed
the various lines.
carry the war into other products, and
announced the policy of making cor
responding reductions in the rates east
company, it is said, never has at
tempted to invade eastern territory,
hitherto considered sacred to the trust.
1t is expected now however, that the
eastern markets will be flooded with
steel products transported at war
rates by the Gould lines. 1t is fur
Their expected that the Colorado Fuel
and Iron company will make ma
terial cut in the prices of its products
in the western markets.
The rumor was af1oat yesterday that
the war had been inaugurated by
the steel trust with a view to forcing
a consolidation of the two interests. |
Friendly overtures to this end by the |
trust are said to have been met with |
refusal by the Colorado corporation. |
c. A. Parker, traffic manager of the |
Colorado company, is in Chicago try
ing to induce the railroads to restore |
old rates westbound.