The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-06-16
ELEVATOR CHARGE
IS DISCONTINUED
GRAIN MEN DISCUSS YEsTER-
DAYS ACTION OF ROADS.
Decision to Quit Practice Of Making
Terminal Handling Part Of Freight
Rate Is Generally Commended
Peavey Company Contract Binds
Union Pacific.

Much local interest attaches to the
action Of representatives Of western
railway lines who met last night in
Chicago and passed resolutions discon-
tinuing the payment by the railroads
of elevator allowances on grain at all
points. The Union Pacific was not rep
resented. Naturally the other roads
are wondering what the Union Pacihc
will do and locally there is counter
opinion heard. Discussion Of the mat
ter at the Chamber of Commerce
showed predominant opinion that the
end Of all allowances Of that nature Is
in sight. sa
Rid Of Uncertainty. .,45
It is assumed that the railroads, upon
advice of counsel, took the decisive
action to be rid once and for all of
uncertainty with reference to the le:
gality of such allowances, and to avoid
the possible raising Of the question IN
the general wave Of railroad and cor
porate inquiry now sweeping the coun'
The Union Pacific Is supposed to
have remained away from the confer,
ence because Of an important contract
for some time existent. IN Whicn tne
| Peavey company Of Minneapolis ap
pears as second party, This Is q con.
tract providing for th re- eleVatl0 g,a =,
shipned ,by the road at IN cents 8
hundred pounds. When it has been ap
preached by the other roads to have
the elevator charges abolished, tne
Union Pacific has always pleaded TN:
contract and refused to make q change
While nothing was said in the meet
Inc to indicate this position, it IS pc
ieyed the railroads will ultlmatel1
abolish all fixed CHARGES as part q
freight rate and that In the near future
| the tariffs will cover only the actua
transportation. e o+- - -..:"
some Political Significance.
The Union Pacifc-P Peavey contract j
Of Importance, not only IN gram tIao
circles. but sort Of semi-political ~
teregt lies in it >for the reason that !
has been referred to at times IN maj
tiers of rate discussion and was the SUI
! iect at one time Of interstate commerce
inquiry o.,.oaa on,
grain men that the contract Is Wnoli
legal and that, in the event OF any Ie
the requirements during its hfe, IN
Peavey company would find redress =
the court and that the railroad IN tur
can hold the Peavey company to IL.
| would appear, however, that emlnen9
counsel. representative Of other road
do not Favor these contracts, but Whetf
er because Of belief in their bindln
character, upon the roads, or because 9
POSSIBLE court construction. that Woul
{ Class such allowances as rebates, Is III
W. Grain Mems Side.
Charles T. Beaver, IF the Peave
company, says; "The contract Detwee
our company and the Union Pacific. e
the elevating Of grain. at lAc q ~
pounds represents a legitimate oHst
For services rendered. This is matte
;. that concerns the Union Pacific eve
more than it does us. The Union r
cific desires certain services at Oman
that work for the quick transfer
grain, the prompt return OF cars, Pr
i vention Of congestion and facll1tatlc
+ Of business generally. We malntal
the largest terminals there, represen
i Sing a considerable investment. 1t W!
entirely natural that the road shou
j have contracted with US. :.
y 'SstThe question Of the right. to ent
, into such an agreement was raised son
, time ago. It was alleged that the, co
tract was in the nature OF 2 rreoat
a The Interstate commerce commission e
= tered into careful examination OF it al
r found 1t legal.