The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-09-03
RAILROAD NEWS.
Roads will Join in Attack on
Recent Ruling.
Shippers Will Unite to Fight
Missouri River Decision.
TO APPEAL TO COURT.
Chicago and ST. Louis Fear In.
dustrial Blow From Opinion.
other Items of Interest in Rail-
way Circles.

Chicago, Sept. 3.-Plans are now
being laid for one of the most stub
born contests ever waged against a
decision of the interstate commerce
commission in the effort to secure a
reversal of the decision written by
Commissioner z. E. Clark in the ia
nous Missouri river rate case.
The decision means great deal to
chicago and vitality affects the most
important interests of the railroads
and the shippers alike. The fight will
assume an added interest from the
fact that the transportation companies
and the shippers for the time being
VIII stand side by side to defend their
position against what is regarded as
one of the most radical steps ever tax
en- by the commission.
1t not only involves the loss of mil
lions annually in revenue to the rail-
roads, it is asserted, but if carried out
to its logical conclusion may mean the
revision of the commercial and indus
trial map of the country.
The order of the commission, which
goes into effect on Sept. Is, reduces
the through rates from the Atlantic
seaboard to the Missouri river to an
amount less tina nthe sums of the local
rates from the seaboard to the Missis-
sippi and from the Mississippi to the
Missouri AS interpreted by Com
missioner Clark, the order is a pro-
mitigation of new principle of rate
making in place of the one which has
been in effect for forty years.
The direct effect of the decision is to
place Chicago and st. Louis at a dis
advantage with the Missouri river
cities. such as Kansas City, st. Joseph
and Omaha, in the matter of rates as
applied to the jobbing business. The
indirect result, it is stated on all sides,
will be a new system of rates through
out the country as well as possible
blow at some commercial centers and
the building up of others.
The through rate from New York to
points west of the Missouri river here
tofore has been based on the local rate
to the Mississippi river crossings, such
as st. Louis and Dubuque, plus the local
from the Mississippi to the Missouri
plus the local rate to the point be-
You'd or STAT from New York to Kan
sas City.
The Missouri river jobbers COM
planned their rates were unduly dis
criminatory as compared with the st
Paul and Minneapolis rates, $1.1E
| from New York. The commission held
that the Twin Cities rates reasonably
may be lower than the Missouri river
rates because of competition by water
lines and Canadian rail lines, ovel
which the commission has no juris
diction. but that the through rates tC
the Missouri river are unreasonable
high 1t consequently ordered a re-
duction making a through rate IRON
New York to Kansas City of $1.3S.
The rate from New York to the Mis-
souri, river cities via Chicago always
has been cents higher than by way
of ST. Louis, because of the longer
haul. for one thing. or $1.55, made VI
of the rs cents from New York to Chi
cago, plus 80 cents from Chicago tc
| the Missouri.
AS a result the Chicago and st
| Louis jobbers declare they Will be
practically shut out of the business
west of the Missouri river in .compe-
tition with Kansas City and st. Jo-
seph.
Although definite ways and means
| have not yet been announced, 1t Is
| known several conferences have beer
held between the railroads and the
shippers. and that it has been decided
to carry the case to the highest courts
1t seems probable, therefore, thai
application will be filed in fedora
court at an early date asking for ar
| Injunction restraining the operation Of
the order as soon as it goes into erect
| The Chicago Association of Com
merce asked the roads to give Chica-
go a local rate of IL cents instead Of
| so cents to the Missouri river, thus
re- establishing the old relationship
The railroads insisted this would only
| reduce their revenues still turthel
without helping Chicago, because
Commissioner Clark has stated thai
the commission would order an equa
reduction in the through rate in order
to carry out its principle that the
through rate shall be less than the
combined locals.
Railroad officials assert the only
logical result of the decision is the
| establishment. of the through rate sys-
tenn, and that no one can tell to what
| lengths it will lead.