Omaha daily bee., 1906-07-08
BURLINGTON MAKES The CUT
Adopts Cent and Quarter Reduction on
Grain TO Missouri River.
RATE WAR NOW SAID TO Be INEVITABLE
Union Pacific Expected to Garry out
It's Declaration of Follow
ina suit Made Some
Days ago.


announcement of the cut in grain rates
from Nebraska points to Omaha of IL
cents and has announced that effective
July 10, these rates will be reduced from
central Nebraska stations to all Missouri
river points
Nothing in railroad circles has hap
pened for sometime which so stirred UP
the managers of the various roads, and
a rate war now seems inevitable. The
Union Pacific ofTlcials said sometime ago
that II the Burlington made this cut, rs
per announcement. there would be moth.
ing left for that road to do except to
follow suit.
The Burlington makes this reduction
because Of the payment Of elevation
charges by the Union Pacific at Omaha
to all elevators performing the service Uf
elevation. 1t claims that it is at a dis
advantage of Ia cents at all competing
stations and the cut was necessary to get
any of the business.
The move is looked upon in some quar-
ters as an effort to force the Union Pa
cihc to remove the payment OF elevation
charges. and a merry war is expected
c. +. Spens, general freight agent Of the
Burlington, went to Chicago Thursday
night and this move was expected rs
soon as he could have a conference with
Freight Traffic Manager Crosby. The ex-
pected happened and late Friday evening
the grain men received notice of the cut.
Nearly All Against Elevation.
All the roads except the Union Pacific
now stand pledged to the policy of not
paying elevation at any points, as they
claim they fear 1t is in the nature OF a
rebate and not lawful. The Union Pacific,
however, stands on the same ground 1t did
before when the Interstate Commerce
commission decided it might pay eleva-
! ton charges to the Omaha Elevator COM
pany and the Transmisslssippi Grain com
! pany in order to secure an immediate re-
turn of its cars at the end OF the line.
| The Union Pacific, since that time, has
strengthened it's position by publishing
the tariff, which carries with 1t the pay
ment of elevation charges to all elevators
which perform the service at Omaha.
South Omaha, Council Bluffs and Kansas
City. This removes the weak part of
the question by making the payment open
to all instead Of simply to the Omaha
and Transmississippi companies.
All roads have during the last week,
announced the reduction of rates TO the
| Mississippi river from Omaha and the
stoppage of the practice OF paying eleva-
ton charges. Some roads have an
nounced the reduction of the rates to the
! south.
Could Road Comes In.
| The Missouri Pacific announced that ef-
! fective July 8, It would reduce all local
| rates and proportional rates on grain from
all stations on that line in Kansas and
Nebraska to St. Louis, Memphis, Missis
sippi valley points, New Orleans and Gal
weston, when for export. The rates will
be reduced IA cents and the road will
| cease paying elevation charges.
When the Burlington said these Ne
braska rates would be reduced the Union
Pacific officials said there would then be
nothing left for them to do but to meet
the rate. When asked when this reduction
would be done Charles f. Lane, first as
sstant general freight agent Of the Union
Pacific, said
mo action will be taken on the matter
until we see the tariff and see just what
has been done"
Assistant General Freight Agent weitzel
of the Illinois Central said:
1.-THE reduction to Omaha will not affect
| this road, but II the rate IL not made
to apply to Kansas City 1t will bring more
grain to Omaha for us to haul. We do
not have line west OF the Missouri river"
General Agent Churchill Of the Chicago
Great Western said:
'Mr. Stickney surely stirred up some
thing when he was here. OF course his
only object was to do what he could for
the Omaha grain market, for we do not
run west OF the river and must get what
grain we get right here in Omaha, and
what will help Omaha will help the Chi.
cago Great Western road. This action OF
the Burlington now puts the fight on
elevation right where It belongs, west OF
the Missouri river"
Opinion of Elevator Man.
1.-THE payment of elevation by the Union
Pacific is a great benefit to the Omaha
Market" said N. B. Updike, "and not
only helps the Omaha market but also
the Nebraska farmers who produce the
grain, and the Nebraska grain men, as n
gives them a market nearer home for theti
grain"
: The Chicago Great Western has an.
nounced that It will apply rates published
on wheat to flour and rates published or
other grains will apply TO products OF tn,
same. This means a reduction OF IL cent
on all grain products from Omaha to tn,
! east.
The reduction OF ~ cents on grain from
Nebraska points 10 Omaha makes a reduc
ton OF ~ cents from Nebraska points t
Chicago and Mississippi river points