Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1905-07-25
OMAHA DEALERS AROUSED
Local Graiu Men Say Elevators Were Estab-
lisbed on Premise Of Allowances
RAILROADS MADE SPECIAL PLEDGES
ST. Louis Dealers Charge OF Dis
elimination f. Denied ana the
Practice Is Justified rs heinz
Entirely Legitimate.

The demand OF the st. Louis grain
dealers that the elevator allowance made
by the railroads at Missouri river points
be abolished has caused quite a stir among
the elevator men OF Omaha.
These st. Louis dealers olnim the eleva-
tor allowances made at Omaha and Kansas
city constitute discrimination against st.
Louis and make competition with Omaha
and Kansas City impossible The railroads
now pay the elevators at Omaha IA cents
por bushel on grain. This is paid by the
Union Pacific because II Is the terminal Of
that road and It Is forced to pay IL In order
20 get its cars back at Missouri river
points. The other roads are therefore
forced to do the same
During the last year S7oO,OOO has been
put into elevators in Omaha because Of
the understanding with the railroads that
this allowance would be made" said one
Of Onaha's leading grain and elevator
men. These elevators have been erected
because the owners felt they would always
be entitled to the same transfer charges
from the other roads as are paid by the
UnNn Pacific.
Formerly the Burlington, Illinois Gen.
trail, Missouri Pacific and Rock Island had
some poiDt east or south where they paid
the transfer charges instead OF at Omaha.
In this way considerable grain was pulled
through and around Omaha without being
transferred through the elevators at this
point.
No Injury to Any City.
ION about June II, the different roads
which terminate at or pass through Mis-
souri, river points held a meeting at Chi
cago and all agreed they would pay trans
fer charges to elevators at Missouri river
points only. The grain men maintained
that II this was lived up to 1t would not
injure Chicago or 81. Louis or any other
eastern or southern market but would
simply have a tendency TO make the roads
pull the grain through Omaha and Kansas
City instead of having the roads pull II
around such points.
This transfer Is not paid on any grain
except that raised west of the Missouri
river and we claim that IL any one IL
entitled to make profit from transfer OF
|, grain II is the man who has an elevator al
these Missouri river points
with the claim OF Mr.. Harahan, second
vice president of the Illinois Central, that
these charges should be wiped out and not
granted at any point the grain men do not
agree. A great many of the railroads have
elevators OF their own for the transfer OF
grain and until they all build elevators fol
the transfer at junction points they will
either have to use other elevators and pay
the allowance, or let their cars run all over
the country.
IAN roads which terminate at Omaha
should take a stand In favor Of these allow.
ances else the other roads soon will bt
shipping all of the grain by their short cuts
and ignoring Omaha.
Legal ana Reasonable.
This question has been adjusted by tn,
Interstate Commerce commission and tn,
allowance made by the Union Pacific have
been declared legal and reasonable. II IN,
elevators were not used the roads ethel
would have ito. let their cars run all ove
the country or resort to the old scoop as tn,
Union Pacific formerly did at Council Blum
10 transfer the grain from one car to an
other"
Grain men maintain, and some of tn
railroads agree with them. that the allow
ance at Omaha does not discriminate
against the eastern market because the cas-
can come to Omaha to buy the grain jus
as we'll as to go into the state for 1t. This
they say, Is simply a question as to whethe
the Omaha elevators will get the privileg
Of handling the grain grown in Nebraska
or whether they must allow Chicago an,
st. Louis to handle it for them. At othe
points a large number of elevators ar
owned by the railroads and are operate
at large expense by them. while at Oman
the railroads have been relieved of this ex
pense By the elevator men.
"