The record-union., 1891-10-20
TRAFFIC. ASSOCIATION.
Richard Gray Discusses the New
Organization.
lie Gives Some Facts and Figures
Which Are Quite In
teresting.
Tsan Francisco Bulletin, october 1eth.l

Gray, Traffic Manager of the Southern
Pacific Railroad:
Mr.. Gray, have you any objections to
being interviewed relative to forming the
proposed Merchants Traffic Associa-
tion T?
Answer-No, sir; at the same time,
do not know of anything in particular
that can be accomplished; yet 1 will say
/ have not looked with apprehension on
the formation of the Merchants Traffic
Association; on the contrary, l should
think such an association, if controlled by
men of intelligence, must result in the
dissemination of more general informa-
ton on the subject of transportation,
which can only result in benefit to the
carriers as well as to shippers. The over
land traffic is more complicated than any
similar traffic in the world. Lack of in
formation on the subject has been pro-
Life cause Of misunderstanding; there
fore, traffic association, acting through
a manager, or through small, but we'll
selected committee, would encounter at
the start the necessity for an examination
into the reasons for existing arrange
Inents. We court such examination and
win gladly furnish all information we
may have on the subject.
Q.-You have remarked that the over
land traffic is complicated-why is this
the case?
A.-For the reason which is often for
IL ulSlaIlpo
from the market for most of her products.
Not only does her wheat have to travel
distance equal to two-thirds the earth'S
circumference, but her products marketed
in the United States have to be trans
ported greater distances than is the case
with land carriage of agricultural pro-
ducts elsewhere. For instance: The
shortest rail line from this city to New
Y ork is 3,3l9 miles, and to the chief city
in the Mississippi Valley , 2,329 miles.
The business is further complicated be-
cause of the necessity for securing over
these long distances rates of Jransporta-
tion which to managers of Eastern roads
seem extremely low, if not unremunera-
tive. To give you an instance of this: /
had occasion this morning to refer to
some annual reports of our Eastern con-
nections. AS far back as 1881, when
rates We're very much higher than they
are at present. the Union Pacific manage
nent in its annual report to its stock
holders for that year, stated that while
the tonnage of freight to and from the
Pacific Coast showed an increase over the
preceding year, the low rate at which
il was carried rendered it the least
profitable of any freight transported by
the company.
1t was also stated that of the total net
earnings of the company from freight
during the years, the Pacific Coast con-
tributed but seven and One-half per cent.
CD. This was before the opening of the
Sunset Route and is plain indication of
the manner in which Pacific Coast traffic
was regarded. If the pioneer overland
line did not consider the business protita-
bic, how must it seem to other roads
whose interest in II is not so large or so
direct! If our Eastern connections do
not regard our low-claSs traffic as desira-
bic, you can readily understand the diff
1iculty of keeping rates down. To adj
Just rates and keep them in harmonious
relation is one of the chief objects and
purposes of the Transcontinental Asso-
citation.
In fact there is a constant struggle be-
tween the various lines because of the
varying interests. The Southern Pacific
Company, with 1900 miles within the
State of California, is constantly con-
tending for low rates on the products of
the State, while most OF the other mem
bers of the association whose interests in
California are secondary to their in
terests elsewhere, endeayor to maintain
high rates.
Q.-How do transcontinental rates
compare with rates of transportation else
where?
A.-The fact is, on all the principal
commodities produced in California,
character of service considered, rates are
lower per mile than any rail transporta-
tiOn on the globe. 1t does not require an
expert to determine this. Present rate
on beans and canned goOds-Which has
been freely criticised-is 81 10 per hun
dred pounds, or SD per ton OF 8 600
pounds, from San Francisco to New
York. BY the shortest line between
these cities, which is over the Union Pa
cific and Pennsylvania Railroad distance
IS 1919 miles, or at the rate OF two-thirds
OF a cent per ton per mile. To Boston it
is siXty-iour hundEedths of n cent; TO
Pittsburg, seventy-seven hupdredths of
a cent; to Cincinnati, eighty-two hun
dredths Of q cent; to New Orleans, nine
tenths of a cent; to Chicago, ninety-one
hundredths Of a cent.
The present rate on dried fruit and raj
sins to New York is 81 30 per hundred
pounds, or $50 per ton Of $1,000 pounds,
which is just nine-tenthS of cent per ton
per mile. To Boston it is 81 of a cent; to
Philadelphia and Baltimore 90 OF a cent
Yet by referring TO the report Of the
Interstate Commerce Commission for
1889 it will be found that the average cost,
as determined by their expert, of mo wing
a ton of freight one mile over the South
ern Pacific system was .972 of a cent, or,
in round figures, l cent per ton per mile.
This is cost OF movement, and does not
lnclude any allowance for interest or
fixed charges.
twill, therefore, be seen that on many
of the products OF the fields and orchards
OF California, the rates per ton per mile
are considerably below the average cost
of movement, making no allowance for
interest on capital invested.
Q.-Eet, IL is claimed you do not carry
these farm products as low as they do on
the roads through the Northwestern
States?
A.-Respecting this the parties are en-
tirely miSinformed, as our rates surely
compare most favorably. The rate on
wheat and corn from Fargo, Oak, to
Minneapolis, is Lob cents per ton per mile;
from Aberdeen, Oak, l.Z6 cents per ton
per mile; from Omaha, Neb., to Chicago,
.!3 OF a cent per ton per mile; from Cedar
Rapids, Iowa, 1.20 cents per ton per mile.
It may he said in general that California
products, while possessing much
larger market. value per pound, are car
ried at lower rates per ton per mile than
Is paid by the Eastern producer on prod
acts of his industry.
Q.-What do think of the fut ure of fruit
growing IN California?
Ave can best judge of the future by
looking at the past. The fruit industry
has had wonderful development, and L
do not think we have by any means
reached the limit. The fruit-growing
area on this continent is comparatively
limited, and California, in soil and eli
mate, enjoys unequal advantages. she
viii soon supply not only the United
States, but good part of the world with
raisins, prunes and canned fruit. Take
canned goods, for instance. In 1870 our
shipments overland were only 1000, ,0G0
pounds; in 1890 we forwarded East
S5,000,000 pounds.
Take dried fruit, the tonnage of which
IL 1850 was only about 400, 900 pounds; in
1880 we forwarded -, 100000 pounds.
Shipments of raisins in 1880 amounted
TO less than 700, ,000 pounds, while in 1890
we forwarded East nearly 29,000, Geo
pounds. Our raisin-growers have pro-
lection to the extent of 21 cents per pound
= rs,, L..