New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-07-16
PACIFIC MAIBS EEW MOVE.

BREAKING WITH THE UNION PACIFIC.
NOTICE. GIVEN OF THE CANCELLATION or THE
FREIGHT AND PASSENGER CoNTRACT-HENRY
HARRIS STATEMENT OF THE REASONS FOR THIS
ACTION.
The Pacific Mail Steamship Company has
given notice TO the Union Pacific Railroad Company
that in sixty days from August the contract for
freight and passengers between the two companies Will
be cancelled.
Henry Hart, one OF the directors Of the Pacific Mail
Company, said last evening About two years ago,
soon after Mr. Clyde became president OF the Pacific
Mail Company a contract entered into between the
two companies by which It agreed that the steam
ships were TO decline all light freight by demanding
high rates the consideration being the vessels did not
I'll on each voyage within 600 tons Of their capacity the
Union Pacific Railroad Company to make up the
difference This the union Pacific invariably did by
filling our vessels with heavy freight at low figures re-
tanning all the hgher-prced freight In this way we
got the milk and the other company all the cream
Another feature Of the contract that We were TO
keep up hgh rate OF passenger tariffs the considera-
ton being that we were to receive s. headmoney for
every passenger carried by the railroad company.
Each month the railroad company would present a
statement OF the number Of passengers carried
ACCOMPANIED by a check for the amount due. We had
no account Of 70 show precisely how many pas
songers were carried 10y the Union Pacific Company and
we were forced TO accept whatever offered There
has been no settlement made by the railroad company
since November Mr. BabcOek, president, has made
repeated efforts to sidney Dillon, president OF the
Union Pacific Road failing each Tune The Pacific Mail
directors held meeting few days and the matter
was talked over President Park, Of the Panama Rail
road Company present and he stated that the Union
Pacific aud Central Pacific Companies owed the Panama
railroad and Pacific Mail steamship Company, Jointly,
over $500 COO aud that all attempts 70 secure settle
rent had failed We found that the Central Pacific Rail-
road owed Pacific Mail, old account over S4OOOO
for the payment OF which arrangements could be
made Our DIRECTOR therefore, decided TO take adyan-
taco OF a section I'm the contract which provides that
either company cancel Il on giving sixty DAYS no
tice."
the steamship ine Mr.. Hart said Not IN tho least
The ureseut does not pay even II we could
ret settlement We do not need the aid OF either the
Union Pacific Central Pacific Railroads. and we pro-
pose hereafter schedule OF freight ana pas
ger rates suit the public necesscs without being
trammeled with pooling compact. All our freght VIII
he carried by steamships To Aspinwa where 10 will be
tra1sferId 10 banana By tie Panama Railroad from
Panama il win be carried to San Francisco China and
elsewhere by our own vessels The City OF Picking on
her last trip from New-YOrk carried 261 passengers,
thirty-nine OF whom In the first cabin. She also
carried 1901 tons Of freight which the proportion
due Pacific Mail is 100000 BY sending vessel every
week we hope 10 put Pacific Mail in better condition
and ultimately a paying basis."
Sidney Dillon stated last evening that he had Just re-
turned from the West and could give no information In
regard 10 notice given by the Pacific Mail directors
until he had seen it and examined the contract.