Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1885-01-01
RAILROAD MATTERS.
The Old Contract System to be Abolished
New Rates.
rs. F. Call, December Slst.

The various merchants in this city that
| have been receiving freight under the con-
| tract system of the Transcontinental Asso-
| ciation have been notified that on and after
| to-day the rates now in force will be with
| drawn, and that new ones will be an
| nounced by tomorrow. The effect of this
is virtual abandonment of the old con-
| tract system, and is the immediate result
of the recent conferences between the inter
ested roads in Chicago and New York. A
new tariff, which was fixed up at that time,
and which is to go into effect shortly, in
some instances increases the rates and in
others reduces them. The main object
seems to be to give the interior towns in
the East a chance to compete for trade.
| The basis of the tariff is from New York to
| the following terminal points on this coast
| San Francisco, Sacramento, Stockton, Oak
| land Los Angeles, San Jose and Marys-
vile, in California; Portland and Astoria,
| in Oregon; and Tacoma and Seattle, in
| Washington Territory. The new rates from
| New York will be under the old rule that
is to say, articles which were heretofore
| taken under contract at 81 for each 100
| pounds will, under the new tariff, be taxed
| 81 % hundred. The rate on goods from
| Pittsburg, Buffalo and Cleveland, Cincin-
natl, indianapolis, Detroit and Toledo,
|
| Orleans, Cairo and Memphis and Missouri
J river points, are based upon the New York
| rate, taking into consideration the reduced
distance between those points and New
| York and the terminal points.
| These matters We're all settled as stated
at the Chicago and New York meetings of
| the interested roads, and will form no part
of the proceedings OF the Transcontinental
| Association which meets in this city next
month. The principal business of the As
sOciation will be the settlement OF some
! slight differences between some of the
| roads in the pool, and the election of new
| Commissioner to succeed Mr. Cannon, who
! has been temporarily acting since Mr.. Ris-
tine resigned. 1t is not thought among
well-posted railroad men that the pool will
disband, for it is not believed to be to thei1
interest to do so. Who the new Commits
sioner will be, however, is mere conject-
ure. But Mr.. Cannon appears to have the
| inside track for the appointment.
At the office of the General Freight and
| Traffic Manager OF the Central Pacific il
| was learned, in addition to the above, that
upon staples, as, for instance, hardware, the
new general rate is the same as the former
special-contract figure. The two rates for.
merly in use upon this class of goods were
81 and 81 80, the latter of which has now
been fixed upon for all cases. The ole
eight classes of freight, l, =, 3, 4, A, b, C
and d. are retained under the new system
The new tariff has been agreed to by the
Erie, Pennsylvania, New York, West Shore
and Buffalo, New York Central, Delaware
Lackawanna and Western, and Ba..dmor,
and Ohio Railroads, which are the trunk
lines" besides many small local lines cas-
of the Mississippi. The roads which, no.
having the special contract system, were
formerly at rather disadvantage, will By
the new arrangement, be placed, it i.
claimed, upon an equal footing witt
the Sunset" line. Freight upor
this route is sent by sea to New
Orleans and brought thence by rail to Sar
Francisco, sixteen days being consumed
while eighteen is necessary by the Centra
and Union Pacific route and twenty-ont
upon the Northern Pacific, that is, from
New York to Portland. Though the adop
ton of the new system leaves all shippers
free to send their freight either by sea Oh
rail, it is not feared by the railroad man
ayers that they will suffer from any falling
off in traffic, since the superior certainty
and dispatch afforded by rail transportation
is expected to overbalance whatever may
be claimed for the cheapness of ocean
freight rates It is claimed to be great
advantage to merchants that they can re.
ceive stock of goods on short notice by
rail, thus doing away with the necessity o
| having Il second stock always on the way
lest the first should be exhausted before
another could be secured The special
contract system has been in operation fo1
six years and by it a reduction OF 25 pei
cent. was made from the former figure fol-
open traffic, while the merchant who
agreed to the special contract obtained
much lower rates still, but was debarred
from the privilege Of shipping any of his
goods by routes other than those specified
in the agreement. Under the new system.
as already stated full liberty III this respect
is allowed to all and one uniform rate
established.
The local agents of the Chicago and
Northwestern and of the Chicago, Milwau.
kee and St. Paul Railroad Companies have
been fined $50 each for violation of the
rules of an agreement regarding commits
| sions ON the sale of tickets Several
changes in the local agencies of Eastern
! lines are anficipated on the 1st