The herald., 1897-05-08
Promise to Develop a Small
Rate War
THE VALLEY ROAD CHARGES
RESULT IN VERY LIVELY COM
PETITION
Union Pacific Litigation and Pros
pects-Missouri Pacific troubles.
or for Los Angeles


Associated Press Special Wire.
SAN FRANCISCO. May THE COM
San Joaquin river between this city and
Stockton is becoming very brisk indeed.
The cause of it all is the traffic arrange
ment between the California Navigation
Union Transportation company and the
Southern Pacific road have combined to
meet the rate Of the opposition lines be-
tween this city and Fresno by way of
combine were sold yesterday and now
the passenger may take his choice OF
two routes for $3.75. This rate of course.
iS good both ways and a corresponding
rate is given to intermediate points
Since the Union Transportation COM
pany has go met the competition of its
rival the Navigation company in retail
alton has decided to put on another
steamer ard have two boats leave San
francisco at pm. every other day,
connecting with the Valley road. The
southern Pacific comes to the aid of tc.e
Union line and announces trainsto leave
the water front in Stockton Immediately
after the Union company's boate, arrive.
Arrangements are also being made by
Huntington's line to handle freight by
this route to San Joaquin valley points
In view of this lively compe tition it is
expected that very ma terial reduction
of rates may be made before the summer
exodus of the San Joaquin valley resi-
dents to the sea and mountains. The
fruitshipments to the markets here may
call forth rate war very soon.
UNION PACIFIC LITIGATION
OMAHA, Neb.. May 7.-General Solic-
itor Kelly Of the Union Pacific system
will return within the next few days
from New York, where he has been en-
gagged for month past in legal matters
connected with the foreclosure of the
governments lien on the Union Pacific
railway. Considerable testimony has
been taken in regard to the interests in
volved in the foreclosure, before Judge
Cornish, special master in chancery, for
the Union Pacific receiverships.
In regard to the time of the actual
foreclosure sale there have been all
/
is in position to judge, said
In my opinion 1t is a good, safe bet
that the foreclosure of the Union Pa
c,f1c VIII not take place this year. I un-
derstand that Master Cornish has beer
III New York taking testimony from
holders of various liens against the
Union Pacific, other than that of the
governments. 1t viii be some time be-
fore the master will give his report on
the cases to the court. Even if these re-
ports were accepted by all parties con-
cerned and at once confirmed by the
Federal courts, it would take month or
more, but it is pretty we'll understo oot!,
that there will be protests from the hold
ers of certain liens. There are even
those who are almost willing to wager
that the foreclosure sale of the Union
Pacific will never take place at ALL The
receivership may, they argue, be ter
minated within year, or possibly some-
what less time. but the road will be op-
Grated by the owners in the way they
think most profitable"
MAD MAGNATES
NEW YORK, May IA sharp break
in Missouri Pacific railway stock yester-
day to 10, the lowest point on record al
though followed by rally revived the
rumors of falling g-out between Presi-
dent George Gould and Russell Sage, the
two largest holders of stock and bonds.
The most sensational report is that Mr..
Sage requested from George Gould an
accounting of the construction of certain
lines of the Iron Mountain railway m
He did not cFaim that there
q q at n hnr tIa<
tion Of the roads, but he was simply after
and he could not see why
he should not have it, since he is prob
ably the second largest holder of the
company.
Another dispute is said to have been
over the issue of the new Manhattan
4 per cent bonds, to refund the per
cent bonds of the old New York Elevated
road. Mr. Sage is said to have opposed
issuing the bonds at just the time they
were foated, because double interest
would have to be paid for a period of
nearly six months. Another incident
that is eaid to have added to the cool
ness between them was the reduction of
the dividend on Manhattan stock from
to 5 per cent. Mr.. Gould it is said
wanted to finish the year 1896 on a 6
per cent DdSlS anu tHeIi Teuucp the QlNl-
Gend in the first quarter of 1897, while
Mr.. Sage favored the reduction in the
last quarter of 1896.
OFF FOR LOS ANGELES
CHICAGO, May 7.-Tonight a special
train will leave over the Santa F'e, car
rying 450 conductors from the territory
tributary to Chicago to Los Angeles,
to attend the biennial session of the
Grand Division of the Order of Railway
Conductors. The e< <ursion is under
tie auspices of Chicago Division No.
OF the order. The train will consist OF
ten Pullman sleepers, baggage and
dining car 1t will run direct to Los An
geen The return will be made by way
o! San Francisco, Portland, Spokane
Falls, st. Paul and Minneapolis.
TT RAINED EGGS