The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-08-11
TRANSCONTINENTAL RATES.
Third Vice President Stubs
Statements Discussed.
The Traffic Association Differs With Him in
Many POints-Earnings Of the Donahue
Line During the Month Of July.

The denial of Third Vice-President J. c.
Stubs of the Southern Pacific Company
that the Transcontinental Association pays
a subsidy to the Pacific Mail Company,
published in Yesterdays CALL, has been
subject Of much discussion.
q prominent member of the Traffic AssO-
citation, who knows all about the existing
arrangement between the railroads and
Pa ciic Mail Company, when seen, said that
10 matter how Mr.. Stubs chooses to put It,
the Transcontinental Association entered
into contract with the Pacific Mail Com
pany in 1888. according TO the terms of
which they guaranteed TO pay $4,000 a
month, or 5000 600 year to that company.
III you do not call that subsidy. do not
know what else you can call it," said the
Traffic Association man. Placing sheet
of paper and a pencil on his desk he COM
menced to do some figuring and then con-
tlnued his talk, saying: whatever earn
Dgs the Pacific Mail Company has during
each month are placed TO the credit OF the
TTanscOntnental Association, aud on the
debit side of their ledger they record the
$4,000.
A MONTHS RECEIPTS.
THE highest receipts for one month since
that agreement has been in operation were
Sal, GOO. So, as matter of course, the
TTanscontinental Association had 10 be
paying money 10 the Pacific Mail Company
right along And still Mr. Stubs says
there is DO subsidy"
Speaking of the reasons for the meeting
called by the Southern Pacific Company in
New York on the oath Of this month. the
Traffic Association man said that L. T.
ViniHg, the chairman of the Transconti-
mental Association, is also the traffic man.
ager of the Pacific Mail Company, so far as
their California business is concerned
has nf IN
do with this fight, except to secure a con-
tinuanee Of its subsidy" he explained :;
but the Southern Pacific is anxious TO have
the tTanscontinental rates reduced, so as to
be able 10 compete with the new clipper
lines, When Mr.. Stubs cOnfTontS the gen
tlemeD representing the Chicago lines they
will insist that the differentials or prO-rata
rates from Chicago west and return must
also be reduced If the New York rates arc
lowered; and that is the point Mr.. Stubs
Will fight, because the Southern Pacific de-
sires no reduction west of Chicago.
In the opinion OF merchants the whole
matter OF transcODtnental rates Is being
ag tated by the Southern Pacific for no
other purpose except TO draw public atten-
ton and TO prevent any immediate action
being taken in the way OF lowering local
freight rates.
WHY THEY DO IT.
They remind one of a gang OF thieves
who start fight on q street corner so as 10
give their Rccomplce a chance TO escape
with the plumber while they are engaging
the attention of the police" said one man
yesterday. THE fact of the matter is that
the tTanscont inental traffic Is all right and
while the clipper ships may compel the
railroads 10 lower their New York or Chi
cago rates, the principal concern of the San
Francisco merchants Is the high and op-
pressiye local rates with which the Trans
atlantic Association has nothing whatever
TO do, and against which the Legislature
alone can give them a remedy"
The san Francisco and Great Salt Lake
Railroad promoters are negotiating with
some capitalists, not rs yet interested in the
scheme, and expect to induce them To make
large private subscriptions. Until these
negotiations are completed no further pub
LEFTY will be made as to the plans of the
directors
Charles T. Fee, the general passenger
agent Of the Northern Pacific Railroad, and
A. ID. Charlton, assistant passenger agent
OF the same comHany, were in conference
with Traffic Manager Gray of the Southern
Pacific Company.
The representatives OF the Northern Pa
cifc are here TO obtain more favorable
arrangement with the Southern Pacific re-
garding the division and percentage on
through passenger ticket sales.
The San francisco and North Pacific Rail-
roads earnings for the month of July were
$50. 407 80, against SS4, ga 80 last year, The
expenses were 81 03 this year, and
81, 450 04 In July 1891, which leaves the
earnings for July, 1892, $50, 800 %, against
those OF the same month last year of S37,-
094 "a, gain of S246l %.