Omaha daily bee., 1909-04-15
NIXUP IN FREIGHT RATE.
New Traffic Bureau Of Commercial
Club Faces Difficulties.
MARKETS SEEK ADVANTAGES
cities. Courts, Railways, Interstate
Commerce Commission, shippers
and Experts Weave Tangled
Web In Western Rates.

Omaha. Kansas City, st. Joseph and
Sioux City want the Mississippi river
rubbed off the map as a baslng point for
freight rates.
Denver brought a case before the In
t~erstate commission and the
decision which, followed rubbed the Mis-
souri, river off the map as a basing point
for freight rates.
Now Denver wants the Missouri river to
stay where It is and rates to break on the
river. but also wants a line drawn from
Pixies Peak TO Denver and the rites to
break on this line.
When Salt Lake City heard what other
cities wanted, the Utah shippers flied a
petition asking that the rates from Omaha
and Kansas City be cut from s2.S to tl.77.
or equal to 50 per cent OF the rate from
Missouri river to Sacramento
The Missouri river case is in the
supreme court; the Denver case eliminating
the Missouri river has reached q point
where the shippers OF Colorado don't want
to take their own medicine, no action has
been taken as TO making Denver or it's
Pixies Peak air line a basing point; the
petition of the Utah shippers, with a full
history OF Utah and the Mormon church,
is before the Interstate Commerce commits
sion.
Something for New Bureau.
This is the kind of a tumble which the
traffic bureau of the Omaha Commercial
club faces upon It's organization, which was
completed when the approval of the execu-
tive committee of the Commercial club was
secured Tuesday.
The active manager whom the traffic
bureau will secure will in all probability be
e. j.. McVsnn, present secretary Of the
Omaha Grain exchange.
The Interstate Commerce commission
seems to be having as Ill success satisfying
rival commercial centers as the railways
always had. according to Omaha shippers
who look over the field with the hope that
the new traffic bureau will be enabled to
straighten things out.
Though Denver has been in the market
for years for lower freight rates, the pres-
ent complications had their beginning ap-
parently when a Kansas City dry goods
firm, OBSERVATION-DISCLOSURES, with one of
their traffic experts, started in to get a
rate from New York City to Kansas City
only 5 cents higher than the rate to ST.
Paul and Minneapolis. In other words, the
Kansas Cityans wanted the rates to the
Missouri river only about 5 cents higher
than the rates to the Mississippi river
from New York City and eastern points.
Missouri shippers Jsmp In.
Omaha. st. Joseph and other Missouri
river cities Joined Kansas City. John L.
Webster was the attorney for the Omaha
wholesalers and worked with able attorneys
from Kansas City.
The compIainants argued that the baslns
' ltAa 81 Al. NElt--l.-a - -. -
regarded or abolished. but one of the COM
plainants' expert witnesses testified that
he did not think similar action should be
taken with relation to the basing line on
the Missouri river crossings.
The Interstate Commerce Commission
held that while they were not impressed
with the view that the system of making
rates on certain basing lines should be
abolished, that it must not be assumed
that a basing line for rates may be es-
tablished ans made an impossible barrier
for through rates.
Accordingly the commission ordered a re-
duction of the rates from New York to
Missouri river points of . cents per hum
dred pounds on first class freight and II Is
a through rate, disregarding the Missis-
sippi river.
Denver got wise to this and secured n
through rate from Chicago, disreRardins
the Missouri river, OF $50 against SOS
Then something happened. The Colorado
Manufacturers association got to thinking
about the situation and sent this telegram
to Chairman Knapp of the Interstate Com
merce Commission:
The principle laid Gown In the Durham
Hanna-Munger case Missouri river essa,
and the Denver case, 10 destructive to novs
recognized jobbing centers."
And Denver asked that the 3.s rate ha
not put In TO replace the S2.O5 rate NAY l.
as ordered by the Commission.
The railroads have given notice that they
will fight the Denver case regardless of
how the courts hold in the Missouri river
case.
Denver has since made II known that the
business organizations OF that city want
the rates to break at the Missouri river,
but they also want Denver made a basing
point for territory west, which would make
It possible for Denver to ship to Colorado
points and the territory west at the same
rate as Omaha and Kansas City, which
Denver cannot do at present.
What the shippers of Omaha will do is
a matter of conjecture. There Is nothing
to do in the Missouri river case apparently
but wait for the decision of the supreme
court. Denver is doing all that 1t is posi-
Die to do TO keep the rate secured from
going into effect, and Salt Lake City Is
In the ring stirring things up as much
as possible with an eye to becoming an
other basing point.
Some shippers are opposed to the princI-
pie laid down in the Missouri river case,
but by far the largest number in Omaha
are supporting It.