Northern Pacific Slashes Freight Rates in a Coast-to-Coast War

The railroad situation on the North Pacific coast has taken a new turn. The transcontinental lines are fighting for traffic between the East and the Pacific. By its ownership of the Morgan line of steamers from New York to New Orleans, and by its all-rail connection from the Gulf to the coast, the Southern Pacific has made lower rates from the Atlantic to the Pacific than the Northern roads with their all-rail lines, and has thus been able to foster the claims of New York and San Francisco to commercial supremacy. The Northern lines have joined issue and are making a strong bid for the trade of Chicago and the Mississippi and Missouri River cities, and for the markets of their Pacific terminals.

The result is a decision of the Northern Pacific, notice of which was received in the city yesterday, to put in effect on April 15 the same commodity rates from Chicago, Mississippi River and Missouri River common points to North Pacific coast terminals and points common with them as are now made by the Southern Pacific Sunset route, 30 cents being the rate per 100 pounds. This applies to both carloads and less than carload lots. The extent of the reduction can be seen from the fact that it cuts canned goods, iron pipe and nails from the old figures to 30 cents, other commodities being reduced at least in proportion.

While the Northern Pacific has not announced a similar cut in the class rates, it will probably do so, for the Union Pacific has made its class rates the same as those of the Sunset route.