The Washington herald., 1908-08-09
They Fear Higher Freights
on Rail and Ocean.
SITUATION ON THE LAKES
Canadian shippers Scent Danger
in Combine Alleged to Operate
Against Dominion POrts-GaIvestOn
Hopes to Profit by Diversion of
Product-Investigat Stnrted-

taken the question Of reduction under
serious consideration.
/ The announcement Is made that the
rates on grain across the ocean are 70
/ be raised on account Of lack q space
/ in the holds Of freight-carrying steamers.
! Grain men in Buffalo have peJtioned
I the Interstate Commerce Commission 20
make a fun investigation into the rail
rates for grain from Buffalo 10 coast
points. and also the reduction OF the
rate between CEicaEo and New York for
grain going by al rail routes
| II is stated that an association exists
/ in Canada the object Of which is TO con
/ troll the rates on grain between Canadian
/ points. and that il alternately works in
favor OF Montreal Georgian Bay point.
and the City Of Buffalo
Galveston on the Alert.
Finally shippers In Galveston are alive
! 10 the situation and are putting forth ex-
ira efforts 70 divert as much grain as
/ possible To the Texas port. by way OF
taking advantage Of the situation 20 con
troll the European grain trade OF the
Z Southwest
These facts indicate 20 what extent
the traffic companies are going 70 raise
freight rates this year and get a share
Of the profits Of Americas bumper grain
crops. promised from the fields OF tie
great Northwest Il may or may rot fol
low that the various cauplaints are well
founded. but The bringing OF these COM
plants from remotely separated points
together serves 90 emphasize that fn the
wide sense competition stHI exists IN
transportation. despite the effors Of trans
portation companies and traffic meu 70
put IL in leash and squeeze the last drop
CT profit from g.
How Canadians view Matter.
The situation Ir Canada IS set forth in
a dispatch from Montreal as fellows
-Notwithstau6lrE the low rates % L.v-
erpool via Montreal. there is much dis
. satisfaction here. There is a suspicion.
apparently sustained by evidence. OF a
grain combine formed % boost Era.u
rates on the Lakes. as AGAINST Canadian
ports. and that a commission viii prob
ably be appointed o. make an i-vesclga-
tiou. Tie statement IS made that the
Lake shippers have combined to make the
rates 20 Montreal cents (Which IS what
the trunk lines say they cannot meeu,
and that last year 100000 bushels Of
grain went via United States ports owing
20 TIE actions OF the Dominion Marine
Association. The matter has been laid
before tie Hon L =. BroleGr and he
has sisuiteG his willingness 10 have o
thorough invesfl cation
Persons interested in This matter have
made an inquiry into the facts. and their
statement 10 the Dominion government is. .
in part as follows
An the freight between Canadian
ports has, by iay- 10 bs carried i1 c.
madam bottoms. So rEat all wheat shipped
from Montreal -1 Quebec. has 20 De ear
rted by members Of The association The
result has becT-Tr1- when the Dominion
Marine Association minimum rate was
above a parity wltA what could be done
via Buffalo. through Boston New York .
and Philadelphia, tie grain Went 20 Buf- /
taio- whereas "a much larEer percentage .
could have gone 20 Montreal
1t works hardship against Montreal F
during the dull period. from the latter
part Of Nay and Erst part oF June lfn-L .
the nrst OF October. For instance. last 3
season and The season before se- eraI .
Canadian owners were offered ia cr1rs OF
u cents 10 Georgian Bay p0r,s. but
owing 20 this agreement. they we're un-
able 10 take the grain % thos- ports and 4
actually said that. ACCORDING 20 their
agreement. they could rot break the rsse
TO Georgian Bay. bgt said that if given .
grain 10 Buffalo for IL cents less than the .
rate 70 the Bay. they would be glad 10
take It. although they always prefer grain
70 the Bay as against Buffalo.
Organization TO Boost Rates.
a revelation has been made Of the ex-
istence OF an orsa-ization-a Canadian or
ganizauon-in connection with the lake
traffic, which. SO far as the grain trade
is concerned appears 70 operate assured
" and emphaucally TO the advantage Of /
Montreal. as II II were specially created
Cor that purpose.
The existence Of this organization has
been well known. but its methods. and (.
their results. have only. come 10 light as
the fruit OF a patient and prolonged in
vestigation by a high authority. who. in
order TO ascertain the truth made a trip
TO the West and put himself directly in
touch with those familiar with the con-
ditions.
The documentary evidence concerning
tins association IS Of a startling Charac-
ter. Its primary function. apparently
IS 10 manipulate the rates for the trans
portation OF grain in the Great Lakes.
and this Il has succeeded IN doing in such
a manner that out Of 100000 bushels OF
Canadian grain shipped last year no less
than 100000 left for United States ports.
instead Of going by the Canadian route.
to be sent 70 Great Britain through Ca
madam ports
The Situation in Galveston.
Galveston shippers are viewing the stu
alton with interest. as set forth in the
following dispatch from that city:
In reference 10 the report from New
York that grain rates out OF New York
for Europe would be doubled because Of
lack Of space in the holds of freight car
ryins lines, a nUnlisr Of shippers and
steamship agents Of Galveston We're asked
how. in their opinion. il would affect
Galveston as a shipping port. and South 4
Texas in general. and whether il was 4
thought some Of the grain from the terri
tory tributary to New York would be di-
verJed through here
M Fowler OF Fowler & McVitie,
agents for the HambUrg-American and /.
other large lines doing business here. is Of \
the opinion that Galveston VIII likely get
more grain. since The New York rates 4.
nave been increased than her usual ship \
ments- Although there IS no telling how .
far into Nebraska and the Northern terri
tory her indictments viii be effective,
Kansas and the entire Central and North \
western States are tributary 70 Calves n
ton and the grain vil seek its natural
outlet, regardless Of New York condi- Il
tons II
We have not been advised OF any in
crease in the New York rates said M