Omaha daily bee., 1906-07-20
BASIS OF ROCK ISLAND RATE
MoOrs's Road Favors Kansas City Because
IL Owns Elevator There.
wvANN pOUss IN SOME HOT SHOT
Advises Rock Island that Omaha Con-'
siders ITS Position a. Clearly
Deemed Hostility 90
the Gate City,

Why does the Rock Island road favor
Kansas City with rates and unloading al
lowances and maintain an attitude inim-
ical and detrimental TO the grain market
at Omaha?
There can be only one answer to that
question" said w. J. Hynes Of the Hynes
Grain company. 1T Is that the officials
OF that road are personally and directly
interested in getting grain to the Kansas
City market"
Others around the Grain exchange hint
more strongly that certain Rock Island
officials have money in a certain elevator
company which has a large terminal house
at Kansas City and a line Of elevators
along the Rock Island road, but which
has no interest in Omaha. They say no
other condition could account for the sttl-
tude, unexplained even by the oficials in
question, Of the Rock Island road toward
Omaha.
This Rock Island incident is a crisis
In the history of the Omaha Grain ex-
change" said w. J.. Hynes. Not only
will the discrimination of that road. II
allowed to continue in force. take to Kan
sas City annually about 5000 cars of grain
which formerly came to omaha, but It
would prove the inability OF the local mar
ket to take care OF itself. 1t ls up to us
to knock out this Rock Island rate. We
talk about having the Northwestern and
Milwaukee adjust rates. so that we can
get our share Of the South Dakota trade.
but it is imperative that we should pro-
tect our trade within the borders OF our
own state before we go into another"
Secretary Mcvanns Letter.
Following the action of the Omaha Grain
exchange and the Commercial club in boy
cotting the Rock Island road, Secretary Nc
Vann of the Grain exchange addressed to
II. Cover, freight traf1c manager Of the
Rock Island, a letter which explains in no
uncertain terms the position Of the Omaha
shippers The letter explains previous cor
respondence. 1t was written in reply to
the following telegram from Mr.. GSwer.
under date of July IS:
| CHICAGO, July 49, e. ]. Mevann,
| Omaha, Neb.: Your wire. We are doing
| the best we can under very embarrassing
conditions and trust your people will bear
with us until we can get matters adjusted
more to our own liking, we'll as to yours.
we have no desire to do anything which
| will be adverse to the Omaha grain inter-
ests WIN endeavor to answer your letter
of the 18th tomorrow. II. COVER.
This is the text of Mr. McVann's letter:
| OMAHA, July 10, 1OOe.-Mr.. H.. Cover,
Island g. Pacific Railway, Chicago: Dear
| Str-I am in receipt of your telegram OF the
18th inst. You state that you are doing the
| ditions and trust that our people will bear
with you until you can get matters ad-
justed to your own liking. From all the
| facts that have developed with regard to
the attitude OF your system toward the
Omaha grain market it seems to US that
to your liking" there will be but a very
small amount OF grain left that will be
/ tributary to the Omaha market.
We consider the attitude OF your system
4 is one OF clearly defined hostility 20 Omaha
and Just as clearly defined friendliness to
competitive market. On June % l tele-
graphed you protesting against the abroRs-
4 ton OF elevation allowance at Omaha JiIIy
! u while extending that favor to Kansas >
CITY until July 70. Here was a plain Ques-
ton OF allowing Kansas City an soyantage
over Omaha for~ten days Of IA cents per
nBpnred, DURING which time our. dealers
must sreule from. competitive territory
| What was your reply? ~ =
! elevator allowances at Missouri river was
On On account Of reduction in rates made by
gram men We find they are universally in
iaxor iS,., OF the abrosstion of the elevator al
| This was the only answer / ever received
from you to our protest.
On July Is 1 suggested to your general
for your company to protect this market
| by extending TO our elevators the unload
drsd arg al5OTanee %eisbt q your ~ cents per hun
request was to give authority to
| your agent 10 announce cut Of IA cents
| per hundredweight in your NebTaska
| rates, and now, before this cut has gone
| into effect, you withdraw il, thereby DENY
| ing US even the small amount OF. relief
| which would be given us by that action
| The Frisco end of your system has per
| sisted in keeping in e1Iect the Kansas CItY-
| Memphis equalization basis which has the
! result of robbing Omaha of practically ali
OF its geographical advantages in Ne
| braska. In a letter addressed 10 the West
| ern Trunk Line committee giving notice Of
this radical and revolutionary action, w B.
Biddle, vice president OF your SYSTEM says,
| substantially:
| "Our action in equalizing rates via KAN
| sas City from local points on the Chicago
| Rock Island & Pacific railway in Nebraska
! did not afford Kansas City the relief we
| expected Therefore Mr. Bddle gave no.
tice that he would extend the basis of
equalization to all points on and south of
the main line Of the Union-Pacihc railway.
II TINS language of Mr.. Biddle's does not
express a deliberate attempt TO divert
business from the Omaha market TO the
Kansas City market, then | am unable to
understand the plain import OF plain Eng
liSh sentence.
Finally your company has extended TO
every elevator in Kansas City an unload
ing allowance OF IL cents per hundred upon
all trsnsmissOuri grain which comes into
| Kansas City over your rails and you have