The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1904-01-22
OF COURSE,
PAYS. THE FREIGHT
And 1t is II I-2 Per Cent
Higher, Justto Suit the
Magnates.
AN ENTENTE CONES HIGH
Till and Hartman Said to Haw
Agreed on This Big Increase in
Tariffs To and From the
Pacific Coast.

New York, Jan. 9.-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 17R per cent. has caused much
speculation on Wal street. 1t 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
thorough agreement that a practical
traffic agreement exists between them,
and they can together make the rates
FOR the northwest.
Mr.. Hill has lately been very explicit
IN his statements that the remuneration
for transportation must be brought up
to the needs of the roads if the steady
advance in the cost of labor and ma
terial could not be offset in some way.
The only other way is the reduction of
grades and the introduction of econ,
omies in the shape of larger cars and
greater power Lack of money appears
TO have brought the improvements and
The purchase of equipment to a sudden
stop. Therefore the rates go up. 1t is
L natural process. The railroads of the
northwest in particular have reduced
their rates steadily by various means.
They have operated on n basis pretty
close to the line between gain and loss.
They are ~conservatiVely capitalized and
their stockholders have been patient.
Mr.. Hill takes the ground that they are
justified in making the shippers pay
Tor the advance in initial cost of oper-
ating.
Canadian Pacific's Part.
Tha Canadian Pacific has come in
need not surprise any one who follows
the ways of the American railroad
men who administer that property.
Canadian Pacific says that it is only
anxious to keep peace with all west.
arn lines. The higher the schedule
the better for Canadian Pacific. The
advance in commodity rates will en-
able his road to gather revenue on its
local business just so much greater
than before. On a large part of the
line there is no competition. The adj
vance in rates will also enable the
Canadian Pacific to get better value
for its service when it wants to make
q bid on its own account for transcon-
tinental business. At the moment
there seem little likelihood of any
such disturbance, but the fact remains
that there could be no better action
from a Canadian 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 is. A very slight
would shut the lumber of the far west
out of the eastern markets. That this
is likely to happen in 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 IN Jan
uary is. The rest depends upon the
labor unions.
Will Raise a CIamor.
Pacific has suffered in the
same way as the western lines of the
United States, but not yet to such an
extent.
In the nature of things a full realiza-
ton of the meaning Of the move will
cause a clamor in the northwest. 1t is
not believed that in this case the
agreement is very ironclad-for if it
had been Canadian Pacific would new
lection OF any one of the roads would
make the present agreement impossi-
BILE.
That the agreement will work for
very long in this case is extremely
doubtful. Hill and Hartman will
doubtless stand together, but Atchison
and Rock Island, in the south, and
Canadian Pacific in the north, are hard
roads to hold in any kind Of a traffic
arrangement hat they do not make
themselves Of their own free will. 1t
remains for February and March to
show just where the western lines
stand on this matter. If there is not
a general advance in western freight
rates by the middle of February, there
is little doubt that there will be a re-
version to the old schedule. 1t may
as we'll be stated fatty that the pros
poets for a general advance in rate
schedules are considered very good by
the best Informed traffic officials of the
big western lines.