The San Francisco call., 1896-02-20
MAY CAUSE A RATE WAR,
The. Southern Pacific Company's
Breach of Contract
Resented.
Troops Transported at Cut Rates Over
the Sunset Route to Cheat
Western Lines.

The Western Passenger Association,
which has its headquarters at Chicago and
in which all the railways engaged in trans
continental business west of the Mississippi
are supposed to be united, is in ferment
over what some members claim to be a
breach OF the compact.
The association was organized and has
been maintained for the purpose of keep
ing up passenger rates across the contin-
ent, and one of its most active members
was the Southern Pacific Company of
Kentucky. Its aim was to have all the
railways in the combine work for mutual
interests that profits might be secured on
every possible occasion by thus working in
harmony.
A dispatch in THE CALL of yesterday
contains the information that this har-
mony was tning of the past, or in other
words that certain railway com panies in
Colorado have risen in their anger with
protest against the Southern Pacific of
Kentucky.
These Chicago-C Colorado lines have been
left out in the cold by Huntington and his
! managers exactly as the Central Pacific
has been stunned of late in the interest of
the Sunset route.
The trouble all came about over the
trainload of sailors and soldier rs which re-
Gently passed over the Sunset route be-
tween New York and San Francisco. The
Southern Pacific made an arrangement
with an Eastern seaboard line at very
moderate terms to carry the special mill
tary trains from New York TO New Or
leans via Portsmouth, and the company
did the rest by taking the sailors and
marines over its southern line at greatly
reduced rates. Through the com bination
it was possible to convey the men at prices
iiar halo fbeaE Eror oI
tion standard, and at those figures con-
tract was made with the Government for
the transportation of the troops.
General Passenger Agent Goodman of
the Southern Pacific explained yesterday
that no rule OF the transcontinental COM
pact had been violated. Before the con-
tract to transport the military was entered
into, the president of the association was
notified, and at the same time he was
asked to give an opinion on the subject.
The president replied by telegraph that
the Southern Pacific Company could make
the contract, and so it was understood that
the association had given its permission
for this special case.
The Chicago-Colorado lines viewed the
matter in quite another light when they
learned that business, which should have
come TO them were the associations agree
ment lived up 10, had been diverted over
the Southern route. vigorous protest
was held in Chicago Tuesday to consider it.
Representatives of the Chicago Colorado
lines demanded that notice be served on
the Southern Pacific to discontinue such
practices. Those roads insisted that pas
sengers should not be taken half way
round America simply to evade the asso-
ciation's rules and thereby escape from
the agreement on rates. They also held
that it was a clear case of violation of their
rights under the compact. Business was
taken from them by subterfuge, they say,
and as the midland hines have accordingly
lost money in consequence, it is claimed
by railroad men that trouble is sure to
ensue. Should the tactics be repeated by
the Southern Pacific, the midland roads
have announced they will break up the as
sociation and institute war on passenger
rates into California if necessary.
This is nothing more nor less than an
other instance of the Southern Pacific of
Kentucky diverting business from the
Central Pacific said a railroad ticket
terday on the street. The special rate
could not be made on the central route
without giving some of the money to the
Western lines, SO the Kentucky corpora
ton went to work and connived with the
East Coast air line to carry troops from
its own road there on cheap basis. 1t
was only Southern Pacific trick to beat
the association.
"The other roads ought to have known
better than to enter into an agreement
with the Southern Pacific on any PROPOSE
ton. The Southern Pacific could not keep
contract. anyhow. 1t will do the work
and make explanations and excuses after
ward; and what are you going to do
about it?"
Very Awkward Indeed.