Omaha daily bee., 1917-03-14
Difference OF
OPINION GREETS
RATE DECLS
Some Omaha Be-
heve Prop0 adjust
ment Will Bsdnous to
Business in This City.
TERMED AS OUTRAGEOUS
General Freight Agent Lane of
Union Pacific Comments on
Commissions Findings.
EFFECT NOT ESTIMATED

about by the decision i'll the inter
mountain freight rate case, while :
prominent railroad official assert.
that its effect cannot be estimated a
present
1T would be ruinous to Omaha
business" said Traffic Manager Geilu,
OF Paxton & Gallagher; "at least, tc
that i'll the 900 and 950-mile radius
For instance. the first-class rate from
Omaha to territory between Chey.
enne and Salt Lake City is 65 cents
less than the rate from Chicago tc
the same territory. The suggest n
of the commission would make nj,
not more than 80 cents less than the
Chicago rate. Why, such rate
would enable them to go in that terri
tory and get hold of all the business
consider it an outrageous proposal
1t looks as though someone is putting
something over on the Interstate
Commerce commission. In the terri
tory more than 1900 miles from here
the proposed rate would not be espe-
cially, bad for US, But nearly all OF
our business is nearer Omaha than
that"
Might Lower Some Rates.
Traffic Manager Wilbur of NJ. E
Smith & Co. agreed with this opinion
but said the proposal of the commits
sion would put in practice the same
differentials as obtain at Pacific coast
terminals. He thought it would re-
suit in lowering rates on dry goods
from Omaha to some western points.
Chief Clerk Murray of the Omaha
traffic bureau pointed out that the ac.
ton would result in lowering carload
rates from Omaha to many inter
mountain points which now are the
same as from Omaha to Pacific coast
points.
at would widen the spread between
our rates to the vest and those OF
competitors in the east" he said.
ut would not affect the Omaha
structural steel industry. Structural
steel is shipping from the east through
Omaha to any point west and can be
fabricated here at an additional
cost of only 1H cents a hundred
pounds. That is, an Omaha firm with
a contract to furnish structural steel
to some western point can compete
with any eastern concern at an addi-
tional cost of only IA cents a hun
dred pounds
Comments By Lane.
General Freight Agent Lane of the
Union Pacific says: "1t is too soon
to estimate the effect of the Com
merce commission decision in the
rate case until time is
taken more carefully to analyze.
"An illustration or two will suffice.
Present coast rate on agricultural i'm
plements today from the Missouri
river is $l.25. Salt Lake and Ogden
will both fall within the commissions
prescribed l,300-mile zone and give
Them 80 per cent of this figure, or
81; present rate, $l.05.
"The Missouri river-coast canned
goods rate is $l.l0; 80 per cent of that
would be 8S cents; we are carrying
now 90 cents.
Coast Flour Rate.
Coast flour rate is rs cents; 80 per
cent of that would be 60 cents, as
against present rate of 50 cents.
Present packing house products
rate to coast is $l.50 and,$l so, accord
ing to mixture; 80 per cent of this
figure would be $l20 and $l.28, re-
spectively. We are now carrying 81,
Machinery, present coast rate,
Sl50; 80 per cent, $l.20. We are car
-ying to Utah, $l05.
1--WE might or might not be priv
legged, when the final text OF the
order is received, to raise present
rates to get up to the 80 per cent.
Again, Denver falls within the 600
mile radius to which point from the
Missouri river, the. commission be-
ieves the rate should not be higher
than S. per cent of the coast ter
ninal.
NO Treat DlSturpanCe.
when we get into it the situation
nay or may not be found more for
than at first appears. At first
view, it does not seem that Missouri
liver adjustments will have been
'ound very seriously dealt with. The
commission gives US from now until
April 2, and 4 to think over these
findings and set up any OBJ
ections we may have, which will be
considered.
"The commission seemed to ap-
prove present adjustments to coast
criminals by saying that they are not
Inreasonably low, and also says that
rates shall not be higher,
md that water competition is negligi-
,le. 1t may be negligible the last two
,ears, when the canal has only oper-
tied seventeen months out of twen-
y-four and ocean charges are highest
n the history OF the earth. A year
rom now the situation may have
hanged essentially, for we have al
'eady had measurement of water
competition, when lumber was hauled
or SO or 81 per 1000 feet, north coast
o New York City, and other COM
as low"
Action by Commission.
Washington, March 13.-The In
erstate Commerce commission has
placed before all railroads concerned
proposals looking to the permanent
solution OF the intermountain rate
,ases. The plan provides for the
lbolition of preferential rates in ex-
stence for many years on many ar
(Contued on Page Two, Column Two.)