Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1883-11-03
DA IL z
POST MTELLIGENCER.

. NTELIIGENCEh.l
rus gIRsGmT CONTACT sSsTKN
n IN mot at all singular that there
shouid be q fierce rivalry between tne
Central and Southsrn Pacific Railroads
under one management - and sne
Northern Pacific. Since the hrsf trans
continental line vas completed, IN lss,
the men owning and Controlling tne
CentraI Pacific section of that line nave
enjoyed and used with unbendinR rigof
ana marvellous profit the absolute mo
nouoly of tbs carrying trade between
The Missouri River and the Pscinc thus
placed in their hands There was ALSO
luteiy but one competitor-the ocean
For a while after the road was com
nI.ted. San Francisco merchants Cd
tanned 9 eoodIy portion Of their heavy
goods BY steamship and sail around
Cane Horn. This vas In consravenfion
of the company's fixed determination
that there should be no composition
that lss road ahosld carry all the freiehi
which came westward to San Francisco.
To secure this result a system OF con-
tracts vas established. which provided
suecial and lower rates 10 thoss mer-
chants Who wsuid agree 10 import a"
thsir freight from the East by rail. NO
merchant was allowed these special
rates Who gave his patronage to the
least extent 70 water transportation.
The result has been that importation TO
San Francisco from Eastern ports BY
water has been practically destroyed
Merchants could mot afford TO stand out
acninst these contracts. For many
kinds Of goods speedy transportation
vas dssirable, indeed necessary. and IN
order to secure this at living rates they
were Obliged 70 bring overland articles
which otherwise could have been OBJ
tanned at far less rates by ocean char
tern.
This state Of things yet exists, and to
uro,onQ il was the main object of the
conference Of railroad transportation
maQnases, held few weeks ago In
Sam Francisco. The Northern Pacifc
Railroad has been completed. with
the ocean transportation facilities II
controls, II Is in position TO compete
With the two southern lines for toe
patronage of San Francisco as well a.
that Of this northern coast. The propo-
sition TO pool interests, perpetuase the
iniurious and proscriptive contract
system In force and divide mp the
spoils, came from the southern roads.
Il has been temporarily accepted by
the Northern Pacific, but there are en-
denotes that il Is not to continue. A
leading official Of the Northern Pacific
significantly remarked the other day.
that his company recognized the fact that
certain kinds Of freight would. and Of
right, should come round Caps Horn.
This il the opening wedge. The Central
Pacific officers have denied that any
freight from the East should come by
water, and have emphasized that denial
By proscriptive measures against mer-
chants Who had the temerity 10 choose
their own methods and routes of trans
portasion. Just now there Is great &C
tivity in San Francisco over the matter.
The southern roads have sent ont cir
eulars 70 merchants everywhere asking
for q renewal Of the contracts which
will expire at the end Of the year,
obviously with the intention
Of forcing their northern = rival
10 remain in the pool. Whether it viii
do % remains to be ssen. To refuse
compliance means nsroe competition,
and reduced rates. Il was for this pur-
poee the road was chartered and grant
Cd large landed subsidy. Composition
would benefit the public. But. ON the
other hand, the road is new. Its bust
uess II not established. II 10 heavily
in debt, and perhaps fearful and un-
able 70 sustain, Just now. q deros and
prolonged conflict which will inevitably
follow On independent stand upon the
question of through transportation.
But the time, We believe h not far dis
tant, when the whole fabric VI this
special and exclusive contract system
must fall. The Northern Pacific Rail
road must and viii have its full share
Of trans-continental freiahts. and can,
Il left free to act. from it, superior
facilities, enter into enlarged and suc-.
cs9ful compstition with the other over
land lines.