Omaha daily bee., 1921-07-26
Nebraska Grain
Rate Higher Than
That of Colorado
Charges Not Controlled byDis-
tance But by Reasonable.
ness Freight Agents
Reply to Protests.

Western Nebraska farmers ship
ping their grain over the Union Pa
cihc lines pay much higher freight
rate than do those in western Kan
sas and eastern Colorado, though,
their distance from Missouri river
markets is about the same, q. Nj.
Tunison, an Omaha lawyer with a
wheat farm near Kimball, Neb., and
another near Chemung, Colo. de-
clarcs. The two towns lie close to-
gether near the Nebraska Colorado
line, and yet the grain rate from
Chemung to its market at Kansas
City is 9 IL cents less than the rate
from the Nebraska town OF Kimball
to its Missouri river market,
Omaha.
In reply to protests from Mr.
Tunison, w. S. Rodman, president
of the American State bank at Kim
ball; J. A. Kuhn, traffic manager Of
the Omaha Grain exchange, and C..
F. Childe, traffic manager OF the
| Omaha Chamber of Commerce, it is
stated by the general freight agent
of the Union Pacific, Charles J.
Lane, that he has never met man
competent to pass definitely on the
precision Of any given rate. He de-
clares in a letter that rates are not
controlled by distance or geographi-
cal location, but by "reasonableness.'
He also makes the point that rates
on grain shipped from Omaha to St.
Louis, Chicago or the seaboard. are
the same as those of any other Mis-
souri, river point, regardless OF
whether or not Omaha is farther from
these points He shows that farmers
at Creston, Ia, pay 5 cents bushel
more to ship their grain to Chicago
than the rate from Omaha to Chicago
for grain grown in Nebraska. He
also cites stations in Wyoming,
South Dakota, Oklahoma and Texas
points to markets the same distance
away as is Kimball from Omaha, and
with rates 10 cents busfel higher,
and even more.
Tunison's Reply to Lane.
In reply to Mr.. Lane, who indi-
Gates his belief that wheat growers
of Kimball and other western Ne
braska points are not entitled to re-
lief, Mr.. Tunison has written in
part as follows;
THE first statement of your let
ter u that you have never met any
one competent to pass definitely up
on the precision of any given freight
rate. | will admit that freight rate
making is an exceedingly complicat-
ed and involved problem, the solution
of which requires a consideration of
a number of facts and circumstances.
However, the very fact that it is diff
icult to pass upon the precision OF a
given rate is no reason for adherirg
to a rate once fixed, and is all the
more reason why rate which clear
ly appears unreasonable should be
changed.
you state that I have seemingly
singled out a shipping point near the
Kansas Colorado line, .Chemung, sub
stantially the same distance from.
Kansas City as is kimball, Neb..
from Omaha. / own land and an
raising wheat at both points and be
couse of this fact became acutely
aware of the difference in freight
rates. However, your tariffs show
that the entire western Nebraska
territory of the Union Pacific system
is on much higher level of grain
rates to the Missouri river than is
the western Kansas and eastern
Colorado territory.
he next statement is that after
grain from Kimball gets to Omaha, it
can ride to St. Louis, to Chicago and
to the Atlantic seaboard for the same
tate as grain from Kansas City. 1t is
my understanding that the Union
Pacific system does not haul grain
rom either Omaha or Kansas City
10 any of the points you mention.
That service is performed by other
-ailroads and | assume that the revc-
rue for same is received by such
2tl,er railroads. Such being the fact,
cannot see why the rates on grain
rom the Missouri river to the points
'ou mention afford any justification
or the Union Pacific system TO
,harge the Kimba1l producer 10 cents
ser 100 more to get his grain to
Omaha than it charges the Chemung
PRODUCER to get his grain to Kansas
-ity, the same distance. If the At
antic seaboard or the other ultimate
markets you mention are the points
# which the basic price of grain is
jxed, and the rate from the Missouri
liver to these points IS the same from
ither Omaha or Kansas City. then
he action of your railroad, the Union
'acifc system, i'll charging the KIM
all producer 10 cents per 100 more -
han Chemung producer to get his
rain the same distance to the Mis-
ouri river, simply peualizes the KIM
all producer that much.
$4,000 for One Train.
There is no question but what
Oh are working cheaper for eastern
olorado than you are for western
Iebraska. As to the reasonableness
{ the Kimball- Omaha rate per Sc,
arload OF wheat or say l,oUO bushels
eighs 10000 pounds. At IS certs
er 100 the freight from kimball to
'maha is 1924 1t is down grade all
e way. A trainload of say IS
RS of wheat, picked up in Kimball,
heyenne and Deuel. counties, Ne
-aska, if given good start, would
most roll into Omaha of its own
omentum. At the rate you charge,
~ receive over S21 600 for bringing
e train to Omaha. This appears to
e to be an unrcasonably high
large.
with respect to the rates you
ention at the conclusion of your
tier, from points in other states to
rminals in other states, none of
hich are on your system, it seems
me that the aoniir ability thereof