Union And American

THE RAILROAD WAR.

STILL FURTHER REDUCTIONS IN FREIGHT RATES—RUINOUS PRICES.

Some days ago it was announced the rates on all classes of freight from New York to Chicago had been reduced below those charged by the Pennsylvania Railroad. The latter corporation had cut to twenty-five cents per hundred pounds on first, second and third class freight, and to sixteen cents on fourth class. This was practically cutting on all westward bound freight to sixteen cents as the bulk of it is fourth class.

The Erie then announced still lower rates, viz., twenty cents for the first three classes and thirteen cents per hundred pounds for fourth class. It was supposed by many railroad men that these rates were regarded suicidal.

The Baltimore and Ohio and the New York Central Railroads announced that they would not take freight at twenty and thirteen cents, preferring rather to leave the trade to their rivals and run their cars back empty to Chicago. They found however, that their customers would not send by their lines when they could obtain lower rates elsewhere, and for a few days back the resolution to stand out for twenty-five and sixteen cents per hundred has been broken. The result is that the demoralization exists in the carrying trade, and all kinds of rates are quoted on westward bound freight.

Yesterday contracts were made at eleven and twelve cents per hundred pounds to Chicago all rail and even lower, part water and part rail. This is at the rate of $22, and $24 per car load of ten tons, and the roads suffer an actual loss in the transportation.

The transportation a ton of freight one mile is stated to be, in an official report to the State Engineer, not far from one cent. The rates on first second and third class freight are from sixteen to twenty cents per hundred.

A report gained considerable currency yesterday that no more cheap excursion tickets would be sold by the Erie Railway. At the offices of the company it was stated that no foundation for the rumor existed.