Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-06-17
TEST OF GRAIN CONTRACTS
Unless Compact Between Railroads and Ele-
vators Are Braakable There is Trouble
MATTER WILL Be PUT TO EXPERIMENT
Local Tramc, and Grain Men Are
Considerably Aroused over
This and the Action
ut Chicago.

The Chicago special telegram TO The Bee
lEaturday morning conveying the informa-
Nion that the railroads, except the Union
pacific, would abolish the payment OF ele-
walton charges at all points mas creaIeu
luuite a stir In railroad and grain circles
AThis matter has been up for some pIne
and two meetings have been held IN en-
Acago to consider the advisability OF DOING
away with this form of rebate, as some OF
the roads claim It is in violation Oh the
Aaw and are fearful Of the consequences
sIrhe bee announced Wednesday this matter
would be brought up and It is now said 10
have been brought UP again from another
aource as another railroad Is said 10 nave
made complaint
-The railroads decided by resolution to
discontinue the payment OF these chaIses
upon date to be determined later, saiu
= prominent grain man who was IN Chlcaso
Friday when the matter was being consio-
,ered. THE rub will come when they get
together to decide upon that date for tne
resolution was provisional upon certain
railroads being able to break contracts
which they have with elevator concerns
tust as the Union Pacific has with the
Omaha Elevator company. The Rock
Island has a contract of this kind with
tRosenbaum at Kansas City. These roaos
are 10 see n these contracts can be broken
and will meet again next Tuesday ana de-
eide upon the date for abolishing the
charges unless some Of the roads change
their minds in the meanwhile
Union Pacific Not Invited.
Union Pacific officials claim they were
not invited to partake in the meeting Just
held as their case has been adJudicated
by the Interstate Commerce commission
and they are acting within the law as laid
| bndV of this
country. This whole matter has been
threshed over many times and IL the other
roads do decide to abolish the payment OF
elevation charges the situation will be just
as II was before the other roads were
forced to put in the rate to protect them
selves. As the situation now stands, the
railroads are forced to pay elevation
charges at all places, as Omaha, Chicago
Kansas City, St. Louis and Cairo. In some
cases this amounts to as much as b1s cents
on grain through the Omaha gateway be-
fore 1t reaches the gulf
1.-THE Union Paciics position on this ele'
walton business is unique compared with
that OF trunk lines leading to the east,
said a leading trafic official Of the Unior
Pacific Saturday. 1--WE must Of necessit!
have our equipment relieved at the Mis-
souri, river, for we cannot spare 1t for thu
long trip to Chicago and the seaboard, ant
under the per diem rule. when car is
car, many would go to the seaboard be
fore we got them back, and with limite'
storage in the interior, the great territor,
we serve In Kansas and Nebraska wou
be blocked without this Missouri river ca
RELIEF.
Fight for Business.
This terminal storage in earlier days wa
required and the elevation allowance just
fed. In later years elevators have falle
fast in this Omaha gateway and It look
as II the grain crop was not large enoug
TO go around. They are all seeking to pu
grain into their houses here. which result
in interupting and delaying grain for trun
lines rather than hurrying It on to II
market in the original car. For such line
as lead through to Chicago this elevatio
is naturally considered a hardship. viii
for the Union Pacific IL is a necessity"
The change would throw the grain bus
ness up In the air for time, but as or
man said, III the elevators enjoying r
bates from the Union Pacific would simp
pocket that profit and not use the leveraI
to effect the market the effect would
nil. Peck and Cowgirl, as head Of u
Omaha and Transmissippi elevator con
panies now have an edge Of IA cents ov
other dealers and always win have until Il
Union Pacific company quits paying elev
ton"