St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-02-20
AL the Railroads Leading to Pacific
Coast Points Doing Business at
Reduced Rates.
The Santa Fs Explains Why the Road
Was Dissolved and What Its Future
Intentions Are.
Pacific Mail VIII Build New Steam
ships and Take Traffic ut Most
ANY Figure
The Advance IN Meat Rates Causes n
FURRY In Chicago--Pacific Tel
eGraph Lines.
TransconfinentaI.

hour received no information from New
York from Vice President and General
Manager Oakes, and continues 10 quote
tariff. The lines running TO Council BluItS
from st. Paul. the Milwaukee q st. Paul,
Omaha and Minneapolis * St Louis, com
nlenced selling at the reduced rates from
Council Bluffs 10 California points. No di-
rect cut is yet being made on Portland busi-
ness, though one will have to be made by
the Northern Pacific If it expects 20 COM
pete with the other lines. IL is very likely /
that the fight will extend 10 freight. 1t Is
really inevitable. as the subsidy has been
taken away from the Pacific Mail Steam
ship company of SS5.0O0 per month. Here
tOfore. during the armed neutrality that has
prevailed, there has been 10 some extent |
territorial divisions OF the traffic and various /
treaties that tended to keep out cOmpeti- /
ton, and as far as possible, certain routes /
that might have made trouble. OF this 4
character was the position OF the /
Northern Pacific ami the Ore !
gon Short line, both of which /
refrained from soliciting or carrying any of /
the California business, receiving III lieu 1
thereof a fixed portion of the gross earn |
ingS. As this ceases it may be expected I
that both these roads will enter the field for /
California trade TO make up its loss Of rev. |
enue by the cessation of the subsidy, and
the Oregon Short line, as an escape by the !
Union Pacific from the clutches OF the Cen
tral Paciic at Ogden. as the latter will
doubtless be worked in the interest of the
Southern Pacific and will exact local rates
to san Francisco If necessary. The subsidy
granted the Pacific Mail Steamship company
was to restrict the amount and classes of
freight. as we'll as passengers. that its
steamers should carry between New York
and San Francisco. In becoming an active
competitor for business the Pacific Mail will
cut more deeply into the Sunset route than
any other, as that line claims To be carrying
at the present time 20 per cent. of all the
/ business originating east OF Buffalo and
| Pittsburg. Ii it were not for the Pacific
| Mail lines,
THE SOUTHERN PACIFIC,
by reason of its advantages, would probably
| secure nearly all of the seabOard freight.
| All of the lines beginning at the Missouri
river must pay TO the trunk lines and the
roads from Chicago 10 the river fixed rate
on all TranscOntinental freight For eX-
ample. on freight upon which the tariff rate
| is So per 100, the trunk lines TO Chicago
| exact 75 cents and the roads to the river 35
cents per 100 pounds. This is an arbitrary
charge. as the trunk lines have al
ways refused to prOrate, so that If
the war should force the S5 rate
down to S1.5O. the proportion of Sl.10
would have TO be subtracted from the
through SI.50 rate. Kansas City, Council
| Bluffs, Memphis and Galveston take the
I SAINT rate, but tire Southern Pacific has its
line of steamers from New York To Calves
ton. and the sl.1O forms portion of its
| earnings so that ii is not forced 10 pay an
arbitrary or divide its earnings with for
eign corporation. In this it has manifest
and striking advantage over the rail lines so
far as the seabOard freight is concerned.
With that portion originating west of Buff
falO the case is different, and this 90 or go
per cent. of the total will furnish bone
of contention for the grOupOf middle trans
continental lines, the AtehisOn. Union Pa
cific. Burli ngtOn and Missouri and their
connections. The Union Pacific can, if
shut out of Ogden, reach California via the
Ogden Short Line and Oregon Navigation.
The AtchisOn controls its own line from
Kansas City to San Diego. and has traffic
arrangement with the Southern Pacific from
Calton to San Francisco. just how bitter
the war will be remains to be seen. 1t
may be stated that rates have been about
20 per cent. below tariff for some time past.
: POSITION OF THE SANTA FE.
CHICAGO. Feb I9.-The overland rail-
way war. growing out of the collapse of the
Transcontinental association, was instituted
to-day i'm a thoroughly aggressive way. both
as to passenger and freight traffic. In the
matter of contracting for freight no rates
are granted. but agents have been given
carte blanche TO secure business at any fig
ure. and il is known that very large reduc-
! tiOns are being made. The AtchiSOn. To-
peka Il Santa Fe did not announce its rates
until this morning. waiting until the initia-
tion had been taken by the Union and
Southern Pacific companies. The irst vice
president of the AtchisOu company. to-day,
= speaking of the situation, said that the
: company had given notice of its intention
to withdraw from the TranScOntl-
mental association Dec. 4, 1850,
The AtchisOn company had purchased an
; unfinished railroad in Southern California
known as the California Southern railroad
and afterwards proceeded to construct 100
6 miles additional from Gallon, the junction
\ with the Atlantic IL Pacific road, which
was completed Nov. 1. The purchase and
completion of this road placed the AtchiSOn
company. according to its claim, in posi-
ton to handle and control at least one-half
of the business TO and from Southern Cali
fOrnia. and as there were but two roads
= into that territory they claimed that they
J ! were entitled TO 80 per cent OF the 0usi-
n ness. 1t was on this claim that the assO-
II cation spit AT It's ulectliS III NSM yin
!, city. The AtchisOn COMPANY asked thai
? California be divided into two districts
the Northern to be north of MOZaIr harbOI
: and the Southern south of that point-al
of the other roads in interest-the Southern
> Parifc, Central Pacific, Texas Pacific
: Union Pacific, Denver & Rio Grande anC
. the Burlington & Missouri in Nebraska op
c posed this claim of the AtchiSOn company
Il The official summing up said: Throughout
e the entire contest the Atchison eOmpan.
had been on the defensive, but inasmucl
c as the Union and Southern Pacific road
u have seen fit to initiate war in rates 1t
: the purpose of our company to meet then
at every corner, and they do not propose q
u give up the contest until the question o
e equity is conceded to their interest.
WHAT THE PACIFIC MAIL WILL DO.
!. New YORK, Feb. 19.-The executive
u committee of the Pacific Mail STEAMSHIP
= company held a meeting this morning
= when the notice served upon it by the Pacih
- railroads terminating the contract whereof
!" the steamship company receives subsid
:. OF SIS. 600 per month, was the subject o
.e discussion. The result of the meeting
= embodied in the following resolution:
Whereas, This company has received motto
from the Transcontinental association abrC
- eating the existing contract thirty days froI
the 18th inst
Resolved That the president be and he
hereby instructed to establish week.
~ line from New York TO San Francisco via IN
I, Isthmus of Panama on and after April
IN next taking all through business at the be.
Of rates attainabie; also that he is hereby II
re structed to at once take measures TO purchaS
- a steamer suitable for the business and I
!; : build a first-cIass ship of not less than S,5S
tons and report as soon as practicable 10 IN