Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-12-25
THE REAGAN BILL.
EOM TT WILL INJURE THE TRADE
OF SAN FRANCISCO.
Three Great Railway Managers Point
Out How 1t will Force the West
Out of Business.
Isan Francisco Pos. December 24tb.

lSsn Francisco Post December 24th.T
The merchants of San Francisco and o.
the whole State of California are vitality in.
terested in the action of Congress on the
Reagan interstate commerce bill. which. il
IL understood, will soon be faYorablv re-
ported by the committee that has it IN
charge, and the utmost anxiety is fell
about the fate of the measure. It has been
said by politicians that the bill was in.
tended to correct all the abuses which now
exist in the management of railroads, and
that it has been framed in the interest oI
those who do business with the railroads
This statement has not been allowed ia
pass unchallenged, and IN this city the
merchants and shippers who do the bulk
of the business with the railroads are prac-
tcally unanimous in declaring that the bill
Is bad one, and that, if passed, instead OF
bene6ting the class of men for whom the
politicians pretend to be so solioitous il
would practically ruin them. They de-
Clares that the bill is measure to prevent
railroads and shippers from conducting
their business on business principles, and
BY arbitrary laws to change the current OF
trade from its usual channels in favor of
places which are geographically situated
disadyantageously. As one gentleman said
1t Is an attempt to legislate Winnemucca.
Nevada, to the mouth OF San Francisco
bay. and such a scheme is not practicable. -
The present agitation about the bill was
caused by an interview with Senator Stan
ford. published in the Washington IeIe-
qrGph,in which the Senator declared that
the bill, If passed, " would have an iDjuri-
Gus effect upon the Pacific coast
For the purpose of ascertaining in what
way the bill will injure this coast, Post
reporter called on Colonel c. F. Crocker.
VicePresident of the Southern Pacific
system.
POOLING AND SHORT HACLs.
" You will notice, said Mr.. Crocker,
" that the bill has not yet been reported
from the committee, and Senator Stanford
Is doubtless speaking from knowledge of
facts to which the public has not had ac-
cess. As we have not seen the bill as it now
stands, it is not possible to discuss its dan
gers in detail; but the broad principle laid
down opposing pooling and prohibiting no
higher charge for short haul than for a
longer one, are of course open to discus
sion. To deny the right to charge more for
snort haul than for a longer one is to
make 4 law that will seriously injure San
" Why ?"
Because it is practically to discriminate
IL favor of everything east and south of
San Francisco, and there is nothing west
OF san Francisco but Honolulu
" How does it discriminate against San
Francisco ?"
" Because points east of US will then have
az advantage, not only in time but in
rates.
" VIII you please illustrate in what way
they will have such advantages ?''
Colonel Crocker turned to General Man
ager Towne and Freight Manager Stubbs
who we're present. and suggested that they
give the reporter Illustrations from their
special departments.
To begin with, said Mr. Towne, " all
the merchants of San Francisco favor the
very discrimination, as it IS called against
which this bill is legislating. 1t was only
Q short time ago that the merchants of this
city petitioned US to cease to give the same
rates to Stockton, Sacramento, San Jose and
Los Angeles that we give to San Francisco.
They wanted US to make this city the only
terminal point. We did not comply with
their request. Practically these towns are
situated the same as San Francisco, being
reached by water communication.
a CASE IN POINT.
1t is a mistake to suppose that lower
rates will follow the prohibition of higher
rates for a short haul said Mr. Stubbs.
" | remember one case in point. The new
Constitution of this State has clause from
the Reagan bill in it. 1t was taken from
the Reagan bill bodily. and put in the Con-
stitution. 1t prohibits discrimination in
favor of any place. Before the Constitu-
ton passed we had a special low rate to
Los Angeles, having to comp etc against the
cta hn ffY1ti
passed we raised the rate to the same figure
as other places. We were forced to do this,
OF else reduce all other rates. Now what
followed? Why, the steamship company
raised their rate, too and Los Angeles has
paid the increased rate ever since, and is
paving it now. I'd like to see how Los
Angeles or any other place was benefited
b. that"
7" san Francisco is geographically stu
ated to command the trade of the slope
west of the territory tributary to Salt Lake, y
said Mr. Towne, land it would not be Just
to force trade out of its natural channels
by an arbitrary law, which seeks to set
aside the advantages that the Creator gave
to the city, as this bill would do if it full
filed the expectations of its trainers. Bear
IL mind our situation. Measured by miles
we are further from the great markets of
the East and of the world than any other
part of the United States. We lost the
trade north of us when the Northern Pa
c;ic was opened Up to that time we COM
Iuanded the trade of Portland. The through
rate to Portland was the rate to San Fran
cisco plus the local rate to Portland, so the
Portland merchant, being unable to save
anv freight by importing direct from the
East, preferred to make San Francisco his
base of supplies. But the coming of the
Northern Pacific made the rate TO Portland
the same as to San Francisco, and naturally
the Portland merchant wanted 10 save the
expense Of trans-shipment and the loss OF
time and so he got his goods direct If our
merchants wanted to compete with the
Portland merchants for the trade Of Oregon
thev have not only the difference in time
to overcome but have TO pay the freight
from here to Portland extra. That leaves
MS with only the trade of this State Nevada
Arizona and the back territory. If the
Reagan bill should be carried out as its
promoters believe it viii be. we should lose
the trade Of Nevada and Arizona com
pletely
Az APT ILLUSTRATION.
Please give me an illustration of that
Well" said Mr.. Stubs, let US take
Pano Ney.. for an illustration Reno is {
fourishing town, depending good deal or
the cattle trade, and its stores supply th'
Surrounding country with goods which arr
mainly procured from San Francisco mer
chants. There is no object in their import
Ing direct, because they have to pay th'
f-eight to San Francisco and then the loca
freieht from San Francisco TO Reno. So
pays them to deal in San Francisco, whicl
IS a nearer market than the East, and ha
already secured the trade. But the Reagan
hin Will change all that. The freight t
Peno will then be the same as the freight t
San Francisco, and besides saving time D,
dealing with the East the Keno merehan TsH
will save the local tariff from San Fran
cisco 10 Reno. which he now pays, and tn
san Francisco merchant would either hay
to have a branch in Reno or give up tn
trade"
Would this not benefit the Reno con
sfrmer 2r