Evening capital journal. (Salem, Or.) 1888-1893, 1892-09-01
FREIGHT RATE WAR.
The Transcontinental Association
About to Be Dissolved.

About to Be Dissolved.
CHICAGO, Sept. 1.-THE Tribune
says: From persons who attended
the meeting of the Transcontinental
Association at New York last week
IL IL learned that instead of BULLDOG
ing other roads the Southern Pacific
was downed on nearly every point.
The Canadian Pacific, II IL stated, is
in dead earnest and will stick to its
proposition to reduce west-bound
rates on September 10 to the pro-
portion now charged by the South
ern Pacific on Europeon goods,
which would make the first class
rates $3.50 from New York to San
Francisco, against the present rate
of 1920. This will necessarily force
all other lines to make correspond
iDgly low rates, and knock the Pa
cific mail subsidy, called the "space
rental" by the Southern Pacific,
higher than Gilderoy's kite. Under
the rules, the Great Northern notice
of withdrawal from the association
is TO go into effect within sixty days
from the time notice was served;b ;but,
IN view of the action taken by the
Canadian Pacific, it is certain HIPS
road will consider itself absolved
from all furthur obligations to the
association to the as soon as the
Canadian Pacific puts its new rates
into effect.
President Hill, of the Great
Northern, states that his only object
in cutting loose from the association
is based on determination to adopt
such a rate of tariffs as will pro-
mote business interests, and build
up good towns along the line of his
road from st. Paul to Seattle. This
he could not do under the restrictive
provisions Of the transcoDtinental
agreement. which creates great
discrimination against Interior local
tiles In favor of Pacific coast points.
He claims that the island towns
have always suffered because of the
excessively high rates, and that he
can remedy this state of affairs by
placing the Great Northern in y
position to be entirely Independent
of the wishes of the other roads.
The principal subject for consider
alton at the meeting, next to the
Pacific Mail and Canadian Pacific
subsidy questions, was the PROPOSE
ton of Pacific to reduce
rates on canned goods between the
Pacific Coast and New York to 80
cents per 100 pounds, to enable the
overland routes to meet the COMPETE
tion of clipper lines. The PROPOSE
tion caused a heated discussion, but,
in spite of the strong arguments
made by the Southern Pacific re-
representatives., the proposition was
voted down. Traffic Manager
Stubbs, of the Southern Pacific, was
furious aud said be would give the
required three m nths' notice of re-
ducfion as soon as decision was
reached from the commissioners of
the Western Traffic Association, and
would thea put the 80 cent rate into
effect. A resolution Yves passed to
the effect that I'm case the Canadian
Pacific and Great Northern railways
carry ont their notice the chairman
,'f III" association is to give notice OF
withdrawal from the contract for
''space rental" or subsidy with the
Pacific Mail Steamship Company.
IL has already been announced that
the Rio Grande Western gave notice
of Withdrawal from the association
about mouth ego, ana is determen.
ed to try conclusions with the
Pacific. All this means
free fight for all the lines interested
in the Pacific Coast business, the
Pacific Mail being in with tue
ltbprs