The morning call., 1890-12-20
THEY'RE NOT IN IT.
Gould Has Made n Trade With
the Canadian Pacific.
Withdrawal of the Differential Rate Allowed
This Road by the Trarsc influential Asso-
ciation-Personal Notes.

Official notice has been received here of
the removal of the last and most important
obstruction in the path of Gould's combina-
ton of the Western roads While the now
thriving combine was yet in state of en-
bryo, and the projectors were awaiting the
effect Of their first circular embodyiug the
details of the proposed traffic arrangement,
they discovered in the Canadian Pacific
Railway a hindrance to the perfect con-
summation of their project.
This road is member of the Transconti-
mental Association and by that organization
was allowed differential rate On account of
its long haul and transfers, by which means 1t
has done hourishing business in Pacific Coast
traffic, in both freight and passenger. The
differental on freight amounts from cents
to % cents per hundred pounds, and on pas
senger from So TO SO on a rate to New York
according to class.
SHIPPERS TOOK ADVANTAGE.
Pacific Coast freight-shippers have taken
advantage Of this differential, as have also a
great number Of passengers, and the result
has been large and constantly growing
business for the Canadian Pacific. Geuld in
bringing 10 light and life his late scheme for
the SUPPRESSION of rebates. rate wars, fuetu-
ating rates, etc., plainly foresaw that such a
throw more traffic than ever TO The Cana
dian Pacific.
He saw that the increasing trade Of the
Pacific Coast would seek this channel, if for
no other reason than to wage war against
the combine, for it is a Well-known fact that
combinations OF this character are always
looked upon with disfayor by shippers,
despite the promise and assurances always
extended that there is not even remote ill.,
tention of making a higher rate. Then
again there was the lower rate, only differ
ence OF few cents on hundred pounds,
but footing up in the course of a year for
many merchants sum well up in the thou
sands.
HAD TO BE PUT OUT OF THE WAY.
The Canadian Pacific must be put out of
the way, for the traffic combination would
never work against the active competition
OF this road, as at present maintained. The
Transcontinental Association could not re-
fuse it a 'differential. for in the event of
such refusal it would say good-by to this Or
ganiZalion, and make rate OF its own, and
one, in all probability, which would have
the effect OF securing more traffic than ever.
1t is rot known who deserves the credit of
manipulating scheme whereby the Cana
dian Pacific has Withdrawn from competi-
ton for Pacific Coast business; but that
such Withdrawal has been made is certain.
On aud after January 1st the differential
rate now allowed this road will be with
Canadian Pacific will take the same rate as
if routed by the all-rail routes.
ONE CONCLUSION DRAWN.
From this state of affairs there is but one
conclusion to draw, namely, that the road
must cease to handle Pacific Coast business,
for without lower rate competition with the
short-haul lines is utterly Impossible. Ii Is
not known what inducement was held out
10 this road for the concession above de-
scribed, but it is sad On good authority that
the IranscontineDtal Association has
agreed TO pay the Canadian Pacific a sub
sidy similar to the one row granted by that
organization 10 the Pacific Mail Steamship
Company.
La this case the grant amounts to $4,000
per month"; but it is not thought likely that
the Canadian Pacific has been quieted for
less than twice that amount. TIE amount
OF the subsidy, however, is and probably
will remain for some time to come a matter
of conjecture; but that a bargain has been
made there can be no doubt. Railroad men
say that the last obstacle has now been re-
moved, and that propitious breezes are FILL
ing the sails Of the greatest traffic combina-
tIon ever known.
PASSENGERS WELL PLEASED.
The dining-cars now running between
Wells and Truckee are success, says George
Clark, superintendent of this division of the
Pullman Palace Car service. These cars
are equipped and run by the Southern Pacific
Company, but the Pullman Palace Car
Company operates them at the request Of the
railroad company. The service is good and
passengers are well pleased.
Z. Nj. Barns of the Erie has resigned, and
will 60 10 Portland to accept the city passen-
ger agency of the Chicago, Burlington and
Quincy.
A party Of forty-two settlers left New
Orleans yesterday over the Sunset Route
Tor Southern California.
William G. McGreger of the Railway Mail
Service arrived yesterday from Los Angeles
Warren Keele, agent OF the Michigan
Central at Chicago, is in the city.
SECOND RAYMOND PARTY.
The second Raymond party OF the winter
season was due in Los Angeles yesterday.
The travellers, numbering nearly 100 in all,