The morning call., 1890-04-13
RAILROAD NOTES.
A Statement Regarding Freight
Charges on Tea.

In regard to the alleged unjust discrimination
of the Southern Pacific Company In making 3
slight difference in freight charges on tea
shipped from China and Japan on through bills
of iadlng to transcontinental points In the United
States, and San Francisco shipments TO the same
points, Mr.. Smurr, General Freight Agent OF the
company, yesterday made q statement In which
he does not deny that slight difference In rates
Is allowed 10 favor Of the foreign shippers, but
emphaticaly affirms that the discrimination Is in
no way unjust. This statement is as follows:
Before the completion of the Central Pacific Rail-
road the tea importation of this country was
through Atlantic ports Within a short time there
after Its managers busted themselves in the organi
cation OF through water and rail line from Japan
and China via San Francisco TO these same Atlantic
ports.
Under the present method OF handling this BUSH
ness tea cargoes are delivered solid sufficient to
make train loads thus reducing the cost of handling
at this port to minimum aud giving the rail carrier
sufficient cars to constitute train, placing them In
position to render the rapid movement necessary
and at the minimum of cost.
The rates via the Suez route to Atlantic ports
naturally control or make the rates via San Fran
cisco. This competition has always been most &C
tive. with the result that rates have been modified
from time to time. until at present they have
reached practically non-proftable basis.
We're an attempt made TO handle this traffic To-
caly TO san Francisco, cargoes TO he Split up into
smaller cOnSignments at this port aud delivered to
stores OF warehouses; then later reshipped in single
car lots or less, the additional expense incident TO
such method of handling, storage charges, insur-
ance, etc. well the additional expense forced
on the raiI-carrIer Through having limited volume
of tonnage in this commodity provided. would COM
pei ra-rates that would have the result of curta
ing. II not almost wholly stopping the importation
via the Pacific route.
So small a dollar per ton will defect
the business from one route to another. San Fran
cisco might continue to supply the territory
as at present, but the great bulk Of the business
east of the Rocky Mountains would necessarily
reach that territory from the East by reason Of the
cheaper water line transportation TO the Atlantic
seaboard, or the more recent competitor via Van
couver and the British lines, thus seriously Grip
pling the American carriers, both water and rail.
If action should be taken that would compel the
r. Ia On nj EtflaC
reason OF its being Improbable or carried at POSI-
tive loss, then IL would seem that the volume of
business for the ocean carrier would be curtailed
as to seriously cripple the facilities in the
field, possibly resulting in withdrawal OF some por
| tion OF the service conducted, while the
through business would be lett TO the Suez route
| and the Vancouver and British lines. Then san
Francisco would be not the gamer, but materially
| the loser.
The action OF the Burlington road In making
SO cut In The rates 10 ChlcagO is being severely
| criticised by agents OF other roads. a we'll
| known MOntgomery-Street agent, who has grown
| gray in The ticket business, and In consequence
| OF this long experience is IN position TO know
| whereof he speaks" said to a reporter yesler-
| day:
| {" II these people are not violating the inter-
| state law then | don't know anything about it,
am almost certain that the cut Will not last. l
| do not think any Of the roads are meeting this
rate. Our road Is not, and Will not make any
attempt TO do so. We are doing good business
and DO not propose 10 resort 10 Burlington
tricks for the purpose OF increasing our travel"
Another agent. who has often proved his
adaptability for the ticket business by selling
| tickets to Chicago aud Eastern points when the
| buyers had no serious intention Of leaving the
city, sVerred that all the roads were meeting the
| Burlington "cut" and that 10 ike cases they
| always did this either openly or by those mys-
FERROUS methods known only TO the agents.
George w. Boyd, Assistant General Pdssenger
| Agent OF the Pennsylvania Railroad is in town,
| after a short visit TO Mexico, where he has been
attending meeting OF passenger aud ticket
/ agents,