The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-01-07
COMES HIGH
TO THE PUBLIC
THE ENTENTE CORDIALE BE.
TWEEN HILL AND HARTMAN. E
Advance of 17H2 Per Cent in Freight
Rates by Western Lines Causes
Comment in Wall Street-Demands
Of Labor for High Wages Assigned
. as One Cause for the Advance.

Special to The Journal.
/ New York, Jan. 1.-THE announce
ment that the Great Northern, North
ern Pacific, Burlington, Union Pacific,
Southern Pacific and Canadian Pacific
have reached an agreement to advance
rates 179t per cent has caused much
speculation on Wall street. It is taken
as the clearest indication Of what may
be expected from the friendship that
| has arisen between the Hill and Har-
riman lines. They are now in such
thoro agreement that practical traf-
| fic agreement exists between them, and
they can together make the rates for
| the northwest.
Mr.. Hill has lately been very ex-
| pliclt In his statements that the re-
Enumeration for transportation must
be brought up to- the needs of the
roads if the steady advance in the cost
of labor and material could not be Off
set in some other way. The only other
way is the reduction of grades and
the Introduction of economies in the
shape of larger cars and greater pow
en-. Lack Of money appears to have
| brought the improvements and the
! purchase of equipment to a sudden
stop. e, Therefore,: the rates go up. 1t
is a natural process. The railroads of
the northwest in particular have re-
duced their rates steadily by various
means They have operated on
basis pretty close to the line between
gain and loss. They are conservative
have been patient. Mr.. Hill takes the
J ground that they are justified in MAX
| ing the shippers pay for the advance
4 in Initial cost of operating.
That Canadian Pacific has come in
need not surprise any one who follows
the ways of the American railroad
men who administer that's property.
Canadian Pacific says that it is only
anxious to keep peace; with all west
ern lines. The higher the schedule
the better for Canadian Pacific. The
advance in commodity rates will en-
able this road to gather revenue on it's
local business just SO much greater
than before. On "a large part of the
line there is no competition. The ad-
vance in rates will also enable the
Canadian Pacific to get better value
for its service when it wants to make
tinental business. At the moment
there seems little likelihood of any
such disturbance, but the fact remains
that there could be no better action
from a CanadianF Pacific standpoint
than an advance in commodity rates.
There has been already considerable
protest against the move-and there
is likely to be considerably more pro-
test when the advance in rates goes
into general effect. The far west will
suffer most as it's productions are in
the greater part low grade and there
is not much margin OF profit left for
the shippers as it:sfs. A very slight
. advance 1ln someysg rades Of lumber
would shut the lumber Of the far west
out of the easterI11markets That this
is likely to. happeHin the near future
is denied by officials, but the first step
!. has been taken in the advance in COM
modify Rates to go into effect on Jan
-, l11>o
unions. /. -. . .4re....:.....,s>
I Canadian Pacific has suffered in the
same way as the western lines of the
United States, but not yet to such al
9 extent. ..* -
= In the nature Of things full reali
v zation of the meaning of the move
y will cause a clamor in the northwest
G 1t is not believed that in this case thu
. | agreement is very ironclad-for if i
u had been Canadian Pacific would
: never have been in it. Of course, tn
t detection of any one of the road
would make the present. agreemen
impossible. - ~.
That the agreement will work TO
very long in this case is extremely
:, doubtful. Hill and Hartman will
= doubtless stand together, but Atchisol
and Rock Island, in the south an
l, Canadian Pacific in the north are har
Is roads to hold in any kind of a traff
IS arrangement that they do not max
Is themselves Of their own free will.
" remains for February and March t
o show just where the western line
stand on this matter. If there is no
~ general advance#in western freigh
:, rates by the middleEof February, ther
~ is little doubt that tire will be re
'' version to the old schedule. It ma
as we'll be stated fatty that the pros
poets for a general advance in rat
schedules are considered vry good b
tn best Informed traffic officials of tn
h big western lines. @~s.'t