Omaha daily bee., 1907-02-04
CHICAGO FIGHTING OMAHA
ROHrd Of Trade of Windy City Takes Hand
in Grain Rate Fight
OBJECTS TO lovA-oxAHA PRoPOEnONn
Manager Of One Line Quoted ne
ThreatenIng 60 Reduce che Iowa
rate TO Rob Omaha Of the
Business.

CHICAGO. Feb S.-Cspecial Telegram.)-
Actual hostilities between the Board OF
Trade Of Chicago and the Omaha Board OF
Trade are likely 20 break out following a
conference with the traffc officials Of the
Chicago Missouri river lines here Tuesday.
This was the statement made tonight by
an ufhcial Of the local Board of Trade. who
declared that IL Il came TO a matter of
showing strength the whole trouble will
be taken into the federal courts for ed-
judication.
The difference between the two boards
arises over the protest OF the Omaha deal
ers against a tariff filed by the Chicago
Missouri river lines which specifies that the
proportional rate on grain from the Mis-
souri, river to Chicago and the Atlantic
sea board must be used only In cases where
the grain actually originates west Of the
Missouri river. and nOl on grain from
Iowa, which has been hauled to Omaha and
then reshlpped to the east.
| The new tariffs which win go into eff
feet this week. were filed as a result Of
the agitation against ''backhauling' of
Iowa grain as to enable the Omaha mar
ket to compete in the business. The Inter-
state Commerce commission in the recent
hearing OF the Peavey Elevator case init
mates that IT could see no excuse for al
lowing a lower rate on Iowa grain which
had been shipped into Omaha and then sent
! back east than grain which is given the
1 short haul and taken direct to Chicago OF
the Atlantic seaboard.
Chicago Makes Threats.
No sooner was 1t announced that the new
rule would be put into effect than the
Omaha grain dealers raised howl of pro
/ l,as -
curtan their field OF operation. and was a
discrimination against them. They de-
clared that IL the roads persisted in putting
| In the rule they would take the case into
the courts and ask an injunction restrain
ing the roads from placing the new tariff
| into effect.
But in doing this they trod upon the toes
of the Chicago Dealers who for a long time
considered the ''backhauing" principle q
bad one. The Chicago dealers at once
served notice upon the railroads that they
did not propose TO allow the application
| of the Missouri river proportional upon
( grain from Iowa, and that IL the rule was
not abrogated they would also appeal tC
the courts and demand that the short hau
clause of the new rate law be made appli.
cable in this case and that backhauling b.
forbidden.
| Inc uanlc omciats OF the Chicago-Mts
souri, river lines have arranged for hear
ing of the case Tuesday, when q delegation
of Omaha grain dealers will be present Il
give their side OF the case. The local Board
Of Trade viii also be represented and viii
protest against any adjustment of the stu
alton which does not protect Chicago's In
terests.
A freight trafic manager of one of tn,
strongest lines between Chicago and tn,
Missouri river has declared that II the pro
portional rate is allowed to apply on lows
grain Its line. for one. viii reduce the rat,
on Iowa grain, as to counterbalance an,
advantage the proportional rate may Civ
Omaha and thus protect the interests o
the local Board Of Trade.