New-York tribune., 1885-03-19
THE PACIFIC MAIL SUBSIDY.
EFFECT OF TILE UNION pAcIFICs ACTION.

TIE MATTER DISCUSSED BY THE PACIFIC MAIL d.
REcToRs, BUT NO COURSE AGREED ON.
The executive committee Of the Union Pacific
Railway Company at meeting at Boston on Tues.
day voted to discontinue the contract by which
the overland railroads pay the Pacific Mail
Steamship Company monthly subsidy
for the maintenance of rates on
California business. President Adams sent the
required notice to the steamship company yester-
day, and this action on the part of the Union
Pacific was the subject of discussion at meeting
of the directors Of the Pacific Mail The only men,
bers of the board who were not pres
ent were Jay Gould, who has not
returned from his Southern cruise. and
c. p. Huntington, vice-president of the Central
Pacific Railroad. There were present at the meet
ing President Houston, Henry Hart, Edward Lau-
terbach, William Remsen, Sidney Dillon, Russell
Sage and John w. Shaw, of California Mr.. Dillon,
who was president of the Union Pacific when
the contract was made, was able to remain
only short time. The fact that
Mr.. Huntington was not present and that the Gen.
tral Pacific did not join the notice Of the disso-
luton of the contract, was commented upon.
The directors took no action, but the discussion
was mainly in favor of aggressive measures If tho
Union Pacific insisted on terminating the agree
ment. President Houston said that the notice
be given under the agreement except at the begin
ming of month 1t would be necessary, there
FORE to regard the notice if dated April /. The
monthly payments would have to be made usual
for the months of March and April. Several Of tho
directors declare that the ending of tho
contract would be beneficial to the COM
pany, which would be left free to do
a much larger business even than 1t is now allowed
TO accept. 1t was proposed to put two new steam
ships on the Atlantic route to make weekly
instead of fortnightly trips between New York and
the Isthmus. The company has two vessels which
it can use, but in case another one should be re-
quired 1t was said that q charter could be made
on unusually favorable terms. President Houston
and Messrs. Hart and Shaw were especially conf
dent that the company would be able to increase
its earnings largely if it should be freed from its
alliances with the overland railroads. They de-
clared that abundant freight for q shrp
once week could easily be obtained.
and that it would be profitable
than much that was carried under the existing ar
rangement.
One of the directors said after the meeting that
the action of the Union Pacific was aimed in his
opinion more at the Central Pacific than the
steamship company. "The contest over the
California BUSINESS" he said, has become bitter
and the Union Pacific is trying in every way to
know that 1t is contemplating the use Of tho
Oregon Short Line for the California business. The
difference in time would be small, partlcalariy
when the delays caused by the Central Pacific arc
taken into account. Perhaps the reason
that the Union Pacific gave the notice
is that the competition by the steamship line would
probably inure the business of the Southern Pa
cific route"
c. p. Huntington said last evening that the Con-
trail Pacific had not joined with the Union Pacific.
II do not regard the notice." he remarked. az
much more than a call for conference to make 2
new agreement. think that the overland
railroads are paying rather too much and perhaps
| the amount might be reduced If we were 10 make
new agreement. | do not say that q new agree
meut will be made that the present Que will be
| renewed, but | inclined TO think ara
paying too much. cannot cay what
the course of the Central Pacific will be-"
The contract between the Union and Central Pa
cifc railways and the Pacific Mail Steamship Com
pany has been IN force for long time, and in its
present shape for about two years. The overland
railroads guarantee certain quantity
of freight and in addition pay .
percentage on the passenger business and the
steamship company, the contrary, maintains
rates at a schedule mutually agreed upon. The
payments amount TO about $95 600 month.