Omaha daily bee., 1907-04-09
lREAT WESTERN CUTS RATE
Will Take Care o. All Grain at Council
Bluffs fer OMAHA,
FREE SERVICE ON IT'S OWN LINES
Union Pacific Explains why Il Raised
the Westbound and Lowered
the Eastbound Rates
on Grain.

on Grain.
Beginning Tuesday morning the Chicago
Great Western will reduce the rate on
grain from Council Bluffs TO elevators on
this side Of the river In Omaha and South
Omaha Since the announcement Of the .
Union Pacific Of raise in the rate on
westbound grain across the river from s. a
car to l cent per hundredweight, or about
5 car, the Great Western has been 3
hauling grain free from Council BLUFFS to .
elevators situated on It's own lines on this /
side Of the river and 50 a car to elevators .
on other lines.
The Great Western now announces that It /
will haul grain from its own lines or other /
lines from Council Blufs to elevators on |
its own lines on this side OF the river free, |
and from Council Bluffs TO elevators on |
other lines, 81 a car General Agent Ellis |
says this Is temporary arrangement
but that the rates have been put in to |
stay.
Members Of the Omaha Grain exchange
were considerably worked up over the de-
clsion OF the Interstate Commerce commits
sion that the Union Pacific had a right TO
raise the rates from s. TO s. car, but
since the Great Western has announced
that It will handle these cars for 81 car
the situation is changed.
Attitude of Union Pacific.
The Union Pacific argued that It should
not be compelled to handle grain which
come TO Council Bluffs on other roads
when these roads had lines running into
Omaha, and It was their business to bring
the grain across the river.
I'VE first showed the rate as lowered was
noncompensatory and the rate which was
in existence before was reasonable" said
John n. Baldwin, general solicitor OF the
Union Pacific Monday. when we volun-
tarily lowered the rate we did we were
called upon to explain the reason. The
fact the rate lowered by us is not
conclusive the rate is reasonable and that
the lower rate is compensatory. Our eX-
PLANTATION in lowering the rate was for
commercial reasons. They were to care for
and promote the interests of the Peavey
and Transmississlppi elevators at Council
/ Bluffs, which are on the Union Pacific
| tracks. These were built there for the eco
nomicaI and speedy handling OF the bust
ness The bridge across the Missouri is
part OF our long haul whereas on the grain
which originated in Iowa we only got the
bridge haul. We could afford to reduce the
rates on eastbound business because that
was part OF our long haul, whereas II the
| grain started from some Iowa town we
only got the short haul"
Legal Departments Work.
An amusing incident in the case crept out
Saturday morning which made a little
laugh on the legal department OF the Union
Pacific. That department was preparing a
/ lengthy brief to present in the case giving
the arguments for the Union Pacific side
and members of the legal department
worked faithfully Saturday morning finish
ing up the brief Their work came to an
! abrupt end when someone told them II
they would read The morning papers they
would see their case was already won and
the commission probably would not care
for the brief
Circular from Exchange.
Monday afternoon the Omaha Grain ex-
| change gave out the following;
Omaha, April S.-The Grain exchange
is advised by Mr.. Moseley, secretary OF the
Interstate Commerce commission at Wash
ington, that the press report of it's decision
in the case of the Omaha Grain exchange
against the Union Pacific railway is sub
stantlally correct. This is the case wherein
the exchange sought to prevent the Union
Pacific railway from arbitrarily advancing
its bridge rate on grain, Council BLUFFS to
Omaha, from 81 per car to lc per hundred
weight, OF practically s. per car. 1t would
seem from the press report that the COM
missions decision was based largely upon
the fact that the Union Pacific railway
was obliged to give up all of the s. revenue
to the lines which finally switched the
grain to the elevators in Omaha. The de-
cision Of the commission does not affect
the Grain exchange inJuriOusy, on account
of the fact that there was received today
ruling by the commission which gives the
exchange all that it contended for in the
TTv,g., 40
may be a clear understanding of the sltua.
ton with regard to Iowa grain It has beer
decided that this ruling should be pub
, lshed in full:
Mr.. e. J. McVann Secretary Omaha Grair
! Exchange Omaha, Neb.: Dear Sir-An
| swering your inquiry as to what Lawful
use shippers can make Of the 81 rate named
. by the Chicago Great Western railway FOL
transfer Of grain from Council Rlunfs t.
, Omaha, l am authorized by the commission
4 to say that 4 lhippers consign and hav,
their grain billed in care of the Chicag,
Great Western at Council Bluffs, and tn,
ceive It and transport 1t to Omaha unde
the tarir in question, the practice will no
that traffic can move under the Ia N
until that tariff is lawfully effective. II &
of c0gne t Instance Se carriers 5s o T3
. | western-Could receive grain billed {,
Omaha via its line and then turn it owe
: to the Chicago Great Western at Council
y Blurs for the purpose Of securing TO tn
u shipper lower rate than II Il was car
> Tied to Omaha by the Northwestern. Note
u please, that the instance IN which the com
+ mission expressed the view that the prac
: tce will not be unlawful Is based upol
y the consignment and billing Of the grail
( in cars In care Of the Chicago Great West
| ern at Council Blufts. Very truly yours
, (Sgned) +, E. CLARK, Commissioner
Contention of Exchange.
The contention Of the Grain exchang
has been that grain dealers in Omaha wer
entitled to the lowest possible basis o
rates from Iowa points II has been Eel
strongly that the Iowa lines, which wer
insisting upon s. per car from Councl
Bluffs TO Omaha were doing so because the
did not wish the grain TO come to this mar
ket and that when the Union Pacific can
p ce.led the 81 rate without any advice TO an
Omaha dealer concerned or to this ex
change, the action was taken by reaso
Of pressure exerted by the Iowa lines. Tn
suit Of the exchange against the Unio
| Pacific railway was partly in the natur
Of a protest against this unusual acuo
i and partly as protest based on tn
/ principle that railroad had a right I
increase any rate arbitrarily 80 per cen
| without justfying the increase APPARENT
4 the commission has held that the Unio
Il Pacific railway justified its incrasas sr4 o,