St. Paul daily globe., 1885-12-16
NEW COMPLICATIONS.
Some New and Interesting Points Come
Up for Settlement in the Trans
continental Pool.
The Santa Fe Demands an Increase in Its
Percentages and Asks Other
Concessions.
Burlington Given Permission to Meet
the Illineis Central's New
Orleans Rates.
Work on the Burlington 81 Northern
--Chtcago Freight Traffic Meet
tng--NoteS.
rranscontinenfa1 Affairs.

u
The result of the meeting of the Trans
continental association being held at san
Francisco is awaited with interest by local
railway officials. The request made oy
the Santa Fe at Mondays meeting causes
general surprise, as none suspected tLdt "
had a grievance. This request VIII doupt-
less cause an animated discussion, WHICH
will result in the adjournment OF Tue gen
eral managers meeting and eau one vi tne
presidents. 1t will be almost an lnpossl-
biIitv for the managers to fix it up harmo-
niouslv. A reallotment of the percentages
maid all the roads will have to be made by
arbitrators appointed for that purpose.
If the California Southern is ad-
mitted to the pool the asSO-
citation will necessarily have TO be reOrgan-
lied. The Central and Southern Pacific
will do all in their power 10 keep it eX-
cluded from the pool, as the Santa Fe has
been giving all its through traffic to the Cen
tra Pacific at Ogden. and the Central Pa
citc is an ally of the Southern Pacific, the
two forming the Sunset route. The Santa
Fe has its own line to San Francisco now,
by steamer from San Diego. Some time
ago the Santa Fe entered into an alliance
with the Central Pacific, agreeing not to
put q line of steamers from San Diego if
certailT concessions were made to 1t by the
Central This alliance. however, has not
proved very strong, for it IS now broken
and the Santa Fe again signifies its inten-
ton of doing its own California business.
THE POSITION OF THE BURLINGTON
as regards the pool is hard to define. 1t is
the general opinion that the Burlington in
giving the thirty days notice of withdrawal
from the pool was playing a bluff game. 1t
~. tio 4o 10
pool the money it took from it by carrying
more business than its percentage allowed
it to do This amounted to considerable,
and a fat refusal to pay out this money
was made by it both at the st. Paul meet
ing and the meeting at Chicago. At the ST.
Paul meeting General Agent Cannon OF the
association was instructed to make out
drafts on the Southern Pacific
for the amounts it owed the
other lines in the pool. and on
its refusing to honor these drafts the Bnrl-
ington resigned. 1t will not be very diff
ficult matter at the meeting to pacify it, as
it has not so much to lose as other lines
have. If the Southern Pacific remains
stubborn in its refusal TO make good the
amount it owes to the pool. a disruption OF
the association might ensue. This road
claims that when the division of percent
ages was made, for the six months previous
to June 81, it was carrying more business
than what the arbltrators figured on, and
that it is exempt from paying out the money
it secured above the percentages, compiled
by ignorant arbitrators. On July 1,
A REALLoTMENT WAS MADE,
which was satisfactory to it. and as far as
percentages are concerned the association
has been running along quite smoothly, but
as long as the business done previously to
July remains unsettled, there will always
remain room for kick by some of the
members. If disruption of the pool should
result from the present meeting the Sun
set route would most likely commence cut
ting rates from New York With its
steamers part way the Sunset delivers
freight in San Francisco from New York in
eighteen days, while the other
routes, all rail, take as long as
thirty days. in fact, this is
about the average time, much of it being
taken UP in switching at terminal points.
The Northern Pacific does no through Cali
fornia business. as this is one of the agree
ments in the division of territory by the
association. and besides, it is claimed that
the Central Pacific pays it a subsidy OF
$500. 600 for keeping out OF California. II
a dissolution of the pool does come there
will be some lively times in fighting for Pa
citic coast business.
Some time ago Traffic Manager Stubbs of
the Southern Pacific, suggested to the
Eastern trunk lines the eXpediency of re-
ducing the through rates on domeSticS ard
freight of a like character from Chicago to
the Pacific coast from So to $3.50 per 100
pounds, and asked them to bear their propo-
sition of a similar reduction from the sea-
board to Chicago. The reasons given were
that at the present rate the merchants pre-
ferred forwarding their goods by clipper
ships around Cape Horn, and as a conse-
quence the roads were losing a large
revenue. The Eastern lines have con-
sidered the matter and have refused to heed
the suggestion, and will continue to insist
upon their full local rates as heretofore.
On all bulky goods and freight upon which
time is no object, the Cape Horn route is
making heavy inroads on the transconti-
naDtaI limos