The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-06-13
RAILWAY ARBITRATION.
The Quarrel Between thea. & P. and the South.
ern Pacific Decided in Favor of the Former

CHICAGO, June 1.-THE three arbitrators
Messrs Thomas, Riddle and Winning, who, for
the past few days. have been hearing both sides
in the controversy between the Atlantic s. Pa
ciffc and the Southern Pacific railway com.
panies, growing out of the transcontinental war,
rendered their decision this afternoon. The At
lantic e. Pacific company's line terminates al
Mojave, and for the past two years there has
been contract between that company and the
Southern Pacific, by which the Atlantic & Pa
clic company was allowed to do San Francisco
business, using the Southern Pacific line from
Mojave to that city The dispute arose afte r
the disruption of the transcontinental pool, in
February, and was over the division of the
earnings of the through line between
the two companies. The contract
governing this business was made
in 1884. and provided that the Southern Pacific
company should have for its share of the through
freight and passenger rates its mileage, pro-
rata, of such through rate as may be estab-
lished from time to time by any of the through
lines competing for the through traffic" When
the transcontinental pool broke up the Atlantic
q Pacific company claimed the right to meet
any rate which its competitors might make. and
that the Southern Pacific company was obliged
under the contract, to take its mileage pro
rata, of any low rate that might be made
to meet the competition of other lines. This
claim the Southern Pacific refused to allow,
claiming that the only established rate contem-
plated by tie contract was the one established
by the TranscontinentalA Association. Acting on
this construction of the contract the Southern
Pacific compelled the customers of the A. e P.
through line to pay the old established rates.
thereby forcing the A. & P. to pay back to these
people the difference between the cut and
the old established rate The board of
arbtrators, in their decision, sustain the
position of the Atlantic & Pacific, holding as
follows ''The clause such through rate as may
be established from time to time for any Of the
through traffic means, and was intended to
cepted or permitted by the members Of any
other through line; it being the decision of the
arbtrators that the Atlantic & Pacific company
has the right to make any rate that may be
given, accepted or permitted by the members of
any other through line and such rates are to be
divided between the Southern Pacific company
and the Atlantic & Pacific company upon the
Kansas City and San Francisco mileage, as pro-
vided in the contract"
The decision makes it necessary to have an ac
counting between the two companies to ascer-
tain the amount paid by the Southern Pac' fc to
the A. & P. The Atlantic & Pacific company was
backed in this dispute by the Atchison, Topeka
q Santa Fe and the st. Louis &5 San Francisco
companies who are Joint owners of the line.
The arbitration has attracted unusual at
tention among railroad men because
it was believed that the settlement
of this question would aid in the final adjust
ment of the transcontinental difficulty. The At
lantic & Pacific was represented by General
Manager Robinson, General Freight and Passep-
ger Agent Bissell, and Solicitor Hazeldne and
Judge Henry L. Waldo, of New Mexico. From
the st. Louis & San Francisco were John O'Day,
second vice president and c. w. Smith, general
manager. G.. r. Peck, general solicitor, and
George w. McCray, general counsel, represented
the AtchiSOn Topeka ~ Santa Eo.