The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-05-24
Western Lines Advance Rates on
Packing House Products.
Roads Violated Orders of Inter-
state Rail Commission.
PACKERS RETALIATE.
Threaten to Send Export Ship
ments via Gulf Ports.
Gossip and Matters Of Interest
in Railroad Circles.

Chicago, May 24-An advance of 8
cents per 100 pounds in the freight
rates on packing house products will be
made in the near future by all the
western railroads except the Chicago
Great Western. An agreement to this
effect was reached at a conference of
the heads of the legal departments of
the western railroads, following con-
ferences with the traffic officials.
All the roads running from the Mis-
souri, river to Chicago, except the Santa
Fe, have been made parties to suit
in the federal courts for failing to OBJ
serve an order by the interstate com
merce commission that they should not
maintain higher rates on live stock
than on packing house products. When
this order was made by the commission
the executive officers of the western
roads met, and, with the exception OF
the Santa Fe, decided not to make any
changes in their rates on live stock and
packing house products and to fight
the order of the commission in the
courts.
Santa Fe Obeys Order.
The Santa Fe Immediately reduced its
rate on live stock from the Missouri
river to Chicago from 2515 cents per 100
pounds to 1872 cents, the same as the
rate on packing house products.
In 1903, when all the other roads
agreed to advance rates on packing
house products, the Great Western en-
tered into a contract with the packers
to maintain for seven years a rate OF
1919 cents per 100 pounds OH packing
house products, in consideration of the
packers giving that road a certain per-
centage of their traffic.
That contract prohibits the Great
Western from advancing its rates on
packing house products, and it can only
escape prosecution by the Interstate
ge~e-s,,
rates on live stock to 1872 cents. a cut
of 5 cents, as the Santa Fe has done.
The other roads believe they will lose
less money by advancing the packing
house product rates than they would if
they reduced the rates on live stock.
The Widespread agitation over rate FIX
ing legislation by congress caused the
high officials to overrule the original
decision of the traffic officers to defy
the order of the interstate commerce
commission.
It is probable that the Santa Fe will
follow the action of the other roads and
advance its rates on packing house
products to 2515 cents and viii also in
crease its rate on live stock to the or
iginal basis of 2515 cents.
Packers May Retaliate.
What effect the advance in rates on
packing house products will have on
Chicago as a live stock market depends
largely on the attitude of the packers.
They get good profits now from the
rent paid by the railroads for the use
of their private cars from the Missouri
river to Chicago, while they do not get
any rental from the cars used in the
transportation of live stock. It has been
suggested that the packers may try to
retaliate against the western roads by
shipping all their export packing house
products from the gulf ports instead of
shipping via Chicago from the Atlantic
ports.
One thing certain is that so long as
the Great Westerns rate on packing
house products from the Missouri river
to Chicago is 5 cents less than the rate
Of other roads. it will be given all the
traffic from the Missouri river packing
houses that it can transport.