Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-07-16
THE RESPONSIBILITY LOCATED.
An Able Article on the Transcontinenta
Railway Situation

An Able Article on the TranscontinentaI
Railway Situation.
The New York EueaiHg Post has the fol-
lowing editorial on subject which is Just
now attracting universal attention
The Transcontinental Association is
composed of railroads whose interest lies
largely in traffic to and from she Pacific
coast. These railroads have special prob
lens of their own to solve and special cir
cumstanceS to face: hence the need of an
association separate from the others, al
though all American roads between the
Atlantic and the Pacific are carriers, to a
greater or less degree, of transcontinental
traffic. California occupies peculiar place
in our commerce, for its products compete
partly with those from other portions OF our
country, but principally with tropical fruits
from abroad. From this it follows that the
centre of this competition, the place..where
the fight for Californian supremacy must
be won if won at all, is the Atlantic sea-
board. This is heightened by the further
fact that to the competition of Californian
oranges and raisins with those from Italy
or Spain is added the competition of the
water routes from the Pacific with those by
rail.
This state of things the seaboard cities
regard with complacency; for in anv case.
whether from abroad or by sail or steam
ship from the Pacific, these cities will be
well supplied with wine, salmon, prunes,
fruit, olive oil, and the like. But it is
otherwise with the merchants of the Pacific
slope aud the rail carriers which depend
upon their sales for traffic If trade is not
developed, all transcontinental interests
suffer. For many years, until lately, these
conditions have been recognized in the
tariffs which, On these special products
from California to the Atlantic coast made
rates low enough to allow OF sales as
against the imported articles; while from
California 10 the Interior of our country the
rates were such as to be reasonable of
themselves, and although higher than to
Boston or New York, yet low enough TO
compete with the foreign products shipped
westward from the cities named. To have
refused low rates to our seaboard would
simply have reduced California sales on
this coast, whose people would continue
buying the European fruit; while the luss
of the revenue to the carriers from the
Atlantic traffic would have required still
higher interior rates 10 earn the same net
profit as before
$50 matters stood until the interstate
commerce law and the long discussion
about the long and short-haul. The theory
To which we are settling down is this
L lat "lSlS All CdIIleTS are unuST Inc Inter-
state Commission, rigid enforcement of
this long and short-haul principle is DOS
sible; but where one or more competitors
are freed from the law, it is right that the
remaining United States carriers should
also be exempt. Now, water carriers are
not under the Commission hence we fiud
a rate of 40 cents to New Orleans from
New York, while to Atlanta, g little more
than half way, the rate is 81 Il A rigid
leveling would compel the roads to give
up New Orleans traffic Ito no ones bene-
MT or accept 40 cents to Atlanta until
bankrupt. The Transcontineutal Associa-
tion attempted to apply this water exemp-
ton to their tariffs by making lower rate
from California to the Atlantic seaboard
than to the Mississippi or Missouri rivers.
These tariffs the Interstate Commerce Com
mission condemned as contrary to the law,
Notwithstanding the existing violations
due to water competition in the South and
elsewhere. So tariffs no higher to the in
terror than to the Atlantic were suhsti-
tuted.
The growers and dealers of California
have been waking to the fact that their
markets are not wide enough for the dis
posal OF their products, and conventions
have been held which seemed to consider
the transcontinental roads responsible for
the stagnation, because of high freights
which forbade sales. The roads did indeed
reduce their charges somewhat in answer
to these appeal, but the root of the trouble
was not reached. This, in brief, is the at
tempt of the Interstate Commission. unGer
wrong sense of duty, to impose upon the
land carriers between the Pacific and the
Atlantic strict system of charges, while
competing water routes are, from the
nature of the case, able to quote whatever
they please without reference to the Com
mission. Upon this ruling, demanding
equality of charge to all points, the Trans
continental roads are placed between
two fires; if they make low rates
to the Atlantic. the rates to the
interior must also be so low as to yield no
revenue; while, if high rates are made all
round, both carriers and California pro-
ducers lose the Eastern markets. The
remedy lies in applying to the California
traffic the principle found equitable every
where else-of low rates when made nee
essary by competitors not under Govern
ment control. To modified extent, what
is here said of water com petition between
San Francisco anG New York, applies also
TO the competition of the Canadian Pacific,
for which provisions should also be made
in the rulings in the Interstate Commerce
Commission.
The Southern Pacific Company has given
notice of its withdrawal from the Trans
continental Association because of this un-
satisfactory condition of things. The pos
sible disastrous effects of the breaking up
of this ASSOCIATION gives emphasis to the
statements OF the difficulties imposed upon
it by the Interstate Commerce Commits
sion, at whose door the responsibility
must be laid.