Los Angeles daily herald., 1886-06-13
TELEGRAPHIC.
Arbitration OH the Cut
Rate Dispute.
THE A. & p. Is SUSTAINED.
How the French Princes Take the
Decree of Expulsion-Why
Winston Resigned.

Especial to the Herald bv the AssootatedPress.
CHICAGO, June l2.--The three arbitra'
tors, E.A. Thomas, Hugh Riddle and Il. Z
vining, who for the past few days have
been hearing both sides in the contro'
yersy between the Atlantic & Pacific
and Southern Pacific Railway Compa.
MES, growing out OF the transeontinental
war, rendered their decision this after
noon. The Atlantic h Pacific COmpa-
ny's line terminates at Mojayo and for
the past two years there has been con-
tract between that company aud the
southern Pacific Company by which the
Atlantic & Pacific Company was al
lowed to do San Francisco business,
using the Southern Pacific line from
Mojavo to that city. The dispute arose
after the disruption OF the transconti'
mental pool In February and was over
the division of earnings OF the through
line between &. the. two companies.
The contract governing tins bust
ness was made in 1884 aud provided
that the Southern Pacific Company
should have for its share of through
freight and passenger rates its mileage
pro rata Of "suoh through rate as may
be established from time to time by any
of the through lines competing for
through traffic" When the transcon.
tinental pool broke up the Atlantic Il
Pacific Company claimed the right to
meet any rate which its competitors
might make: that the Southern Pacific
Company wus obliged under the con-
tract to take its mil age pro rata of any
low rate that might be made to meet the
competition of other liues. This claim
the Southern Plcifio refused to allow,
claiming that the only established rate
contemplated by the contract was the
one established by the Transconti'
mental Associ ,u0n. Acting on TINS
construction vi the contract the
Southern Pacific Company com.
PEELED the patrons and customers OF
the Atlantic & Pacific through liue to
nav the old established rates, thereby
forcing the Atlantic & Pacific to pay
back 10 these people the difference be-
tween the cut and the old established
rate. The Board of Arbitrators in their
decision sustained the position OF the
Atlantic Il Pacific, holding as follows;
The clause "Such through rate as may
be esta blished from time to time Tor any
of the through traffic, means and was
intended 20 mean such rate as may have
been given, accepted or permitted by the
members Of any other through line, 1t
being The decision of the arbitrators that
the Atlantic h Pacific Company has IA
right to make any rate that may be CIV
on, accepted or permitted by mem
bers of any other through line
and such rates TO be divided
between the Southern Pacific Company
and the Atlantic & Pacific Company
upon Kansas City and San Francisco
mileage, as provided in the contract,
The decision makes it necessary to have
an accounting between the two com
panies to ascertain the amount to be
paid by the Southern Pacific aud At
iantic 4 Pacific on through business
since the disruption OF the pool. The
Atlantic 4 Pacific Company was backed
in the dispute by the Atchison, Topeka
IL Santa Fe and the St. louis h San
Francisco Companies, who are JOINT
owners of the line. The arbitration at.
tracted unusual attention among railroad
men because it was believed settle
mont of this question will aid in the hnel
adjustment OF the transcontinental diff
culiies.