The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-11-17
RAILROAD NEWS.
A Rate Move Is Being Planned
to Help Chicago.
Shippers Anxious for Through
Traffic West of River
EFFECT BIG CHANGE.
Favorable Decision Means Re-
vision in Schedules.
Other Items of Interest in Rail
way Circles.
EFFECT BIG CHANGE.

Shippers of Chicago and other large
cities as far east as Pittsburg are
planning a move which may result in
complete revision of the present sys-
tenn of freight rates in the entire CEN
trail western territory in case the de-
cision of the interstate commerce
commission in the Missouri river rate
case is upheld by the courts.
The order of the commission reduc-
ing the through rates from the At
lantic seaboard to the Missouri river
cities, which was intended to go into
effect on Nov. IL, is now held up by
an interlocutory injunction issued by
the United States circuit court of ap-
peals A final hearing and decision
on the merits of the case is to be held
as soon as the preliminary details can
be arranged.
If the appeal for permanent in
junction making the reduction illegal,
which will be asked by the Rock Is
land and other western roads, is de-
MED by the court and the new prin-
ciple announced by the. commission
that the through rates shall be less
than the combination of the locals is
thus sustained, the Chicago Assocla-
ton of Commerce, and possibly SINH
lar organizations from Toledo, Gin
cinnati and Pittsburg, will. according
to present plans then go before the in
terstate commerce commission. They
Will present d complaint dSAlIl5 IhdI
through rates be established from
Chicago to Denver, for instance,
which shall be less than the present
ombination of local rates from Chi
cago to the Missouri river and from
the river to Denver.
AS the commission stated in it's
opinion in the Missouri river case,
that through rates ought to be less
than the sum of the locals, the ship
pers believe that it would not hest
tate to establish through rates in IA
vor of Chicago or any other similar
ly situated city. If this principle is
carried out and through rates are
granted points west of the Missouri
river the result would be to give each
city that got the through rate an adj
vantage over the intermediate cities,
while the total revenues to be derived
by the railroads from the through
traffic would be scaled down in pro-
portion.
Chicago and st. Louis shippers or
iginally commended that a reduction of
the through rates from the seaboard
by scaling down the proportion be-
tween the Mississippi and Missouri
rivers would work a most severe in
jury to their business west of the Mis-
souri, with consequent benefits to
Kansas City and Omaha. Since the
commission has decided the case
against them, however, they have TAX
en- no part in the fight made by the
roads to have the decision reversed,
the Immediate effect of the order is
unfavorable to them the principles
contained in the opinion may be turn
ed to their advantage.
The rate from New York to the |
Missouri river has for many years |
been made up by adding to the rate |
from New York to the Mississippi |
river crossings, So cents first class the |
local rate between the rivers 60
cents The commission has reduced |
the rate between the rivers to 81 cents |
when applied to the through trans |
portation.
The rate via Chicago has been |
made up of the rate from New York |
to Chicago, Is cents, plus a rate from |
Chicago to the Missouri river, 80 cents. |
Chicago has thus always had a disad- |
vantage of cents as compared with |
Kansas City and Omaha. On lake and |
rail traffic Chicago has had a handi-
cap of cents. Under the commits
sion's order this disadvantage would
be increased to 16 cents on rail ship |
ments, as the Missouri river jobber
would have the benefit of the through
rate, while the Chicago shipper would
pay the sum of the locals.
If Chicago now goes to the commits
sion ad secures a reduced through
rate to points west of the Missouri
river the condition would be reversed
and this city would secure an advan-
tage in place of the disadvantage I'M
der which it has formerly shipped its
freight to the west.