New-York tribune., 1874-11-09
FINANCIAL PROJECTS.
RIVALS OF PACIFIC MAIL.

RIVALS OF PACIFIC MAIL.
CONFERENCE OF THE OFFICERS OF PACIFIC MAIL AND
TIE PACIFIC NEUTRALITY-SUSPICIOUS. SETTLEMENT
OF THE PRESENT TCoMPLICATIoNs-AN OPPOSITION
LINE THREATENED IF NO ARRANGEMENT is MADE
The talk of an opposition line OF steamers
on the Pacific Ocean having been supplemented ap-
parently by some action, or an appearance Oh ' 'ne
Pacific Mail Directors have reopened the conference
with the officers OF the Pacific Riilroads ana seVera
meetings have been held within the past week with
view 10 arriving at an arrangement mutually satsiac-
tory The history the troubles between the Pacific Mail
Steamship Company and the Pacific Railroad Compa-
nies is stated about as folows In 1871 the Pacc
Mail Company made contract with the Central Pacific
whereby the Steamship Company was TO cooperate
with the railroads in carrying frcighs the receipts on
such freights he divided on basis of onethird 70
the Steamship Company and onehird 10 each OF the
railroads. This positively made for ten
years expire 1881. The Union Pacific Com
pany had also made o contract with the Steam
ship Company whereby passenger rates were to be
maintained and a bonus allowed to the Pacific Mail
Company for every steamer which sailed from here
This contract was 10 be terminated at the option OF
either party upon formal notice Of three months. The
Union Pacific Company such notice. and the Pacific
Mail Company then notified to the Central Pacific Com
pany that their contract would end From that time to
this there has heon much opposition between the rail-
roads and Steamship Company. The Central Pacific
has brought suit against the Pacific Mail Company and
the latter has in turn sued the Union Pa
cfc. The competition between the steamships and the
railroads has seriously impaired the receipts OF EACH
Efforts have been made to harmonze all conflicting in
erests Conferences have been held by President Rus
cell Sage of the Pacific Mail Vice President c. p.
Huntington Of the Central Pocc and President Sidney
Dixon of the Central Pacific The Union Pacific people
say that ths basis Of the proposed settlement is the
abandonment of the China and japan business by way
of Isthmus the settlement OF the Central Pacific
claims and guarantees that the contract shall be main
tanned invioablc. Otherwise this opposition line will
certainly be put in operation.
President Russell Sage said that efforts were making
10 put an end the runous competition between the
steamships and the railroads. The desire was to make
II possible. lua arrangement this week. 10 90 tnls'
however mutual concessions must be made The Paci-
hc Mail Company would bring the cargoes to San Fran
cisco and the shippers could then decide whether they
would send them overland via the Isthmus. 1t was
absurd however. suppose that they would make any
arrangement whereby their coast line was to be With
drawn They did not carry business in that way.
Their steamers for and they wouid use then
10 make all the money which they honestly could. Inc
railroad companies the cause OF the rulnous COM
peuon He computed the losses to the three corpora
tons as aggregatng s3OOOOOO. Any arrangement made
between them must reciprocal. II would be to the
interest Of tie railroads make permanent working
Arrangement. Much bulky and heavy material
would bo seut by which 1t would
not pay the railroads TO carry. The Pdclhc
Mail Company would guarantee the railroads moro
freight than they had carried before The business
of tho Pacific Mail Company had been wrested from the
English steamers and not from the railroads The bulk
of tho Pacific Mail Company's business had never come
10 this country before. but had gone to England via
the suez Canal Any Arrangement between the com
panies must be equitable or it would not be made. He
expected satisfactory settlement however. TINS week.
Stories have been circulated on Walst that the
N LCpr
ing themselves OF their knowledge OF the Companys
business TO speculate in the stock TO the injury OF all
who were legimately interested in tie property OF tho
COMPANY. With view TO placing the directors on
record the following resolutions were adopted, Messrs
Sage Alexandra Talcot Guest, and smith all voting in
the Affirmative:
6sorcd directors Of the Pacific Mail sie9mp Com
aSe responsibility individually AID cohecfe
trustees eolhied to maneene9t 10 project W
Develop lts Resources sustain i' ~
means; s.d tha; .. ,.. -, A.. r. .,n
Breds reported that certain directors OF tbis Com
pauy hsb selling stock short and also sf al ng s
against its eoudoD fus usng tne
value OF Its property iof ne own
persona advantage: therefore, he u
Ksod As Board that il is highly unbeeoming IN
ny pcrs.sery sell the stock o tue COMPANY snort OF
act tending TO pTudce pubh opinion snu
impair the crelit Of the Company