Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-01-05
RAILROADS AND SHIPS.


compete with the Cape Horn route by sail
ing ships. The same paper, having estab-
lished to itsown satisfaction the superiority
of its knowledge over that of the managers
of the railroad, very inconsistently pro-
ceeds to express the apprehension that the
carriage of wheat across the continent Will
after all be accomplished, and ventures to
show how this is to be done. The only
way in which it will be possible, according
to the paper referred to. is for the railroad
to put the rates on wheat below the cost OF
transportation, and to compensate itself by
raising the rates upon all other merchan-
disc. 1t is a perfectly safe prediction that
any railroad conducted upon these prin-
ciples would be a long time in making the
fortunes of its owners, and in fact it
ia only in newspaper articles that railroads
are ever conducted upon such principles
The idea that the Southern Pacific Railroad
Company would deliberately undertake to
carry wheat at loss, for the sole purpose
of driving ships away from San Francisco,
is one of those eccentric imaginings which
are happily confined to the paper we are
speaking of. To those who understand
anything about the situation, it is of course
perfectly clear that the railroad can only
obtain and hold the wheat carriage on con-
dition of performing the service more
economically and advantageously than any
other transportation agency. If the rail-
road, moreover, cannot meet these require.
ments without taking the wheat below the
cost of carriage, it assuredly will not take
it at all, for it cannot hope to compensate
itself by the peculiar methods suggested by
our contemporary, inasmuch as it has to
meet competition in the carriage of other
merchandise as well as wheat.
So long as the ocean is free it must be
impossible for any railroad to establish a
monopoly OF transportation unfavorable to
the public. To say that railroad can
secure the traffic by carrying for time
below cost, and then raise its rates when
it has the shippers in its power, is to talk
nonsense since while the ocean exists
such state of things can never come
about. 1t is in fact impossible to drive
shipping permanently away from any port
except in one way; and that is by furnish.
ing SO much better a transportation service
that there will be no further need of ships.
OF course if such service is established
by the Southern Pacific it will be to the
advantage of San Francisco and that city
has permanent guarantee against excess
i've transcontinental rates for wheat, in the
fact that she stands upon the sea. But
the truth is that all such theories as we
have been examining are sheer delusions.
The Southern Pacific was built, as all
other business enterprises are undertaken,
with the primary object of making money
for its owners. In order to do that they
are constrained to seek the largest volume
of traffic obtainable. This necessity, which
is condition of successful transportation
everywhere, obliges them to put their rates
down to the lowest possible figures CON-
patible with profit. They have not en-
tered upon the project of carrying wheat
without examination and careful calcula-
ton. They know that it can be done at
the figures mentioned by Governor STAN
ford not long ago. and they are prepared
to do it.
If, by reason of the greatly increased
facilities and advantages afforded by the
new route, the business of the grain fleet
which has hitherto carried this staple
be brought to an end, it is no doubt true
that some loss will unavoidably result to
individuals in San Francisco; but it is
equally true that the public generally will
be the gamers. The great saving of time
alone is consid Grafton which must exer-
cise much influence upon shippers, and
since there is perpetual guarantee against
high rates in the natural competitive rela-
tions OF San Francisco, it is difficult to see
what cause of complaint exists. There
are, however, sore journals and people
whom it is impossible to satisfy. Not long
ago these chronic grumblers were com.
planning that railroad freights were too
high. Now they have changed their tune,
and we are treated to lamentable descant
on the theme of low rates. They are to-
day mortally afraid that the locomotive
will beat the sailing ships in carrying
wheat to Europe, and they invite the peo-
pie of California to join them in an antici-
patory wall over the coming era of cheap
freights and rapid transit. What can be
said to such unreasonable people? And
what is it they want Perhaps they would
like legislation forbidding the Southern Pa
cifc and its connections to carry wheat be-
low clipper rates. That really appears to
be what they are limiting at, though they
have not as yet had the hardihood to put
their meaning plainly.
But whether the grumblers and the small
minority of personally interested people
like it or do not like it, it is perfectly GER
tain that the change they look forward to
with such gloomy apprehension is about to
take place. And it is equally certain that
such changes as this must come everywhere,
sooner or later, and the sooner the better.
Commerce of necessity seeks and takes the
shortest routes. It is possible that If either
of the projected interoceanic canals were
completed, the steamship would take the
place of the sailing ship, and run the trans
continental route hard. But it is idle to
speculate upon events which are as yet
scarcely more than foreshadowed. As the
case stands the rivalry is between sailing
ships and the Cape Horn route, and rail.
roads and the transcentinental route. Nor
can there be any serious doubt as to which
of them will carry the day. The control of
the wheat carriage will pass away from the
charterers of sailing ships, and will
be transferred to the railroad. This
change will prove of immense benefit
to the California wheat growers. 1t
will among other advantages deliver them