Omaha daily bee., 1905-08-23
GRAIN RATES RISE A LITTLE
Schedules Influenced Upward by Advance
of the Eastern Line.
MORE GRAIN MAY GO SOUTH AS RESULT
wobble I'm Tariffs Not Exactly Clear,
but it is Said situation Thus
Far Has Not Hurt
Omaha,
MORE GRAIN MAY GO SOUTH AS RESULT

Grain rates have taken a slight move
upward by the announcement of the roads
east OF Chicago that, effective September
1, rates on domestic grain and grain prod
ucts will be advanced to a basis of 171h
cents, Chicago to New York, an advance
from 141s cents on domestic grain and
from Is cents on grain products. Export
grain will be advanced from 10 to Is cents.
Effective September 20, the rate on export
grain products will be advanced, Chicago to
New York. from IA to Is cents.
A local grain dealer said the effect of
this probably would be, II conditions re-
malned the same, to send more OF the
grain than ever to the southern ports.
The cause of the recent wobble in grain
rates is not exactly known to most peo-
pie, but the fact remains that none of
the developments has any tendency to In
jure the Omaha market in any way. 1t is
thought, in some quarters, that the fact
that some OF the roads were paying 3%
cents elevation was one of the causes and
the great reduction announced by the
Burlington brought matters to focus 50
that the rates were fixed on the basis an
noupced by the Chicago Great Western.
AS one railroad man said:
''The railroads would like to handle the
grain themselves direct from Nebraska
points to the market at Chicago or St.
Louis but they are forced, by the estnb-
lishment OF grain markets at Omaha and
Kansas City, to recognize these points
and to pay elevation there"
Another railroad man remarked:
Here is the natural market for the
grain OF this section OF the country and
It is all foolishness for the railroads to
be forced to pay elevation at Chicago or
any other destination"
Forced to Pay Charges.
The railroads are forced to pay these
elevation charges and. as much as they
dislike to, they cannot get away from
them. Peavey made a contract some years
ago with the Union Pacific TO get ~ cents
rebate on every 100 pounds Of grain hauled
over the Union Pacific. The railroad was
willing to pay this to get the cars back
for another haul. The trouble came when
there were points in Nebraska reached by
the Northwestern and Burlington as well
as the Union Pacific. The Burlington was
forced to have an elevator in Omaha TO
compete with the Union Pacific at these
points, but II worked on a different sys-
TEN. The Burlington road said to a shipper
that IL he would send his grain to Omaha
the road would pay the elevation charges,
provided the grain was sent on east or
south over the Burlington. This forced
the elevation charge at the Omaha ter
minal, for If the Illinois Central. for in
stance, wished to haul any grain that was
! in the Burlington elevator 1t had to ad-
vance that charge for elevation. and then
pay another elevation charge at destina-
| tion.
| Stock raisers in the west have learned
that It is cheaper to ship grain to stock
than to ship the stock to the grain, and
this accounts for the large volume Of grain
that moved to the west and north during
| the month of July.