The morning call., 1891-10-20
TRAFFIC ASSOCIATION,
Views of Richard Gray Concern
ing the Work Before the
New Organization.

Gray, Traffic Manager Of the Southern Pa
cifc Railroad:
Mr.. Gray have you any objections to be-
ing interviewed relative to forming the pro-
posed Merchants Traffic Association?
A.-No, sir; at the same time, l do not
know of anything in particular that can be
accomplished; yet. l will say l have not
looked with apprehension on the formation
Of the Merchants Traffic Association; on
the contrary, ! should think such an asso-
citation, if controlled by men Of intelligence,
must result in the dissemination of more
general information on the subject Of trans
poTtstiOn, which can only result in benefit
70 the carriers as well as 10 shippers. The
overland traffic is more complicated than
any similar traffic In the world. Lack OF
information on the subject has been
prolific cause of misunderstanding; there
fore, traffic association, acting through a
manager, or through a small but well-se-
lected committee, would encounter at the
start the necessity for an examination into
the reasons for existing ARRANGEMENTS. We
court such examination and will gladly fur
nish all information we may have on the
subject.
Q.-You have remarked that the overland
traffic is c0mplicated-why is this the case?
A.-For the reason which IS often forgot
teu-that California is long distance from
the market for most OF her products. Not
only does her wheat nave TO travel dis
tance equal TO tWO-thrdS the earthS Circum-
ference but her products marketed in the
United States have 10 be transported greater
distances than is the case with land carriage
Of agricultural products elsewhere. For IN
stance: The shortest rail line from this city
to New \ ork is 1919 miles, and to the chief
city in the Mississippi Valley 1929 miles.
The business is further complicated be-
cause of the necessity for securing over
these long distances rates of transportation
which to managers Of Eastern roads seem
extremely low, If not unremnneratIve. To
give YOU au instance OF this: l had occasion
this morning to refer TO some annual re-
ports Of our Eastern connections. As far
back as 1881, when rates were very much
higher than they are at present. the Union
Pacific management, in its annual report to
its stockholders 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 il the least profit
able of any freight transported by the COM
pany. 1t was also stated that OF the total
let earnings of the company from freight
during the year the Pacific Coast contrib
Uted but seven and one-half per cent az.
This was before the opening of the Sunset
Route, and Is plain indication OF the man
Her in which Pacific Coast traffic was re-
garded If the pioneer overland line did
not consider the business profitable how
must it seem to other roads whose interest
in it is not So large or so direct! If our
Eastern connections do not regard our low
class traffic as desirable you can readily I'M
derstand the difficulty of keeping rates
down. To adjust rates and keep them in
harmonious relation is one of the chief OBJ
jects and purposes Of the TrauScUutinental
Association.
In fact there is constant struggle be-
tween the various lines because of the vary
ing interests, The Southern Pacific Com
pany, with twenty-nine hundred miles
within the State Of California. is constantly
contendng for low rates on the products Of
tile State, while most OF the other members
Of the association, whose interests In Cali
fOTnia are secondary to their interests else
where, endeayor to maintain high rates.
Q.-HOw do transcOntlnental rates com
pare with rates of transportation else
where?
A.-The fact is. on all the principal COM
mod ties produced IN California, character
OF service considered, rates are lower per
mile than any rail transportation on the
globe. Ii does not require an expert to de-
termine this. Present rate of beans and
canned goods-which has been freely criti-
ciZed-is 81 10 per hundred pounds, or
SD per ton Of 1000 pounds from San
Francisco TO New York. By the shortest
lIna between these cities which is over the
Union Pacific aud Pennsylvania Railroad,
distance is 33I9 miles. or at the rate of two
thirds of a cent per ton per mile. To Boston
IL is siXty-four hundredths of a cent; to
PlttSbuTg. Seye lty-Seven hundTtdthS OF
cent; TO Cincinnati, eghty-twO hundredths
OF cent; tn New Orleans, nlue-tenths OF
cent; TO Chicago, ninety-one hundredths of
cent.
The present rate on dried fruits and raisins
TO New York Is 81 80 per hundred pounds,
or $50 per ton or 20C0 pounds, which IS Just
nine-tenths Of a cent per ton per mile, To
Boston il is .S7 of a cent; 10 Philadelphia
and Baltimore SO Of a cent.
ct by referring to the report of the In-
tarst t Commerce Commission for 1889 it
viii be found that the average cost, as de-
termined by their expert. OF moving ton Of
freight one mile over the Southern Pacific
system was 0972 Of cent, OF, in round ig-
ureS, l cent per ton per mile. This IS cost Of
movement, and does not include any allow
Rnce for interest or fixed charges.
1t will, therefore, be seen that on many Of
the products of tile fe Ids and orchards of
California the rates per ton per mile are con-
siderably below the average cost Of move
ment, making no allowance for interest on
capital invested.
Q-Yet tits claimed you do not carry these
farm products as low as they do on the roads
through the Northwestern StatesP
A.-Respecting this the parties are en-
tirey misinformed, as our rates surely COM
pare most taVurably. The rate on wheat
and corn from Fargo, Oak, to Minneapolis,
Is l.23 cents per ton per mile; from Aber-
deen, OAK, 1.26 cents per ton per mile; from
Omaha, Nebr, TO Chicago SO Of A cent per
ton. per mile; from Cedar Rapids, Iowa, 120
cents Per ton per mile. 1t may be said
in general that California products, while
possessing a much larger market value per
pound, are carried at lower rates per ton
per mile than is paid by the Eastern pro-
Queer on products Of his industry.
Q.-Wnat do you think Of the future Of
fruit-growiug In Calfornit?
Ave can best judge of the future by
looking at the past. The fruit industry has
had a wonderful development and l do
not think we have by any means reached
the limit. The fTuit-growing area on this
continent Is comparatively limited, and
California, in oil and climate, enjoys un-
equaled advantages. She Will soon supply
not only the United States, hut good part
Of the world, with Tasin5. prunes and
canned fruit Take canned goods, for in
stance. In 1880 our shipments overland
were only 100000 pounds; in 1880 We for
warded East 83,00O,O0O pounds.
Take dried fruit, the tonnage of which in
1880 was only about four hundred thousand
pounds; in 1890 we forwarded thirty-two
and half million pounds.
Shipments of Taisins In 1880 amounted to
less than seven hundred thousand pounds;
while in 1890 we forwarded East nearly
tWenty-nine million pounds. Our raisin-
growers have protection to the extent OF 2R
cents per pound duty on foreign raisins this
year, against cents last year; while
prune- growers have cents protection, as
against only l cent last year.
Shipments of deciduous green fruit from
the central portion Of the State in 1885 were
less than twenty-three million pounds,
which IN 1880 increased to nearly sixty-nine
million pounds.
1t is true that prices for all kinds of fruit
this year are lower than last year, but this
is due 10 the fact Of abnOrmally high prices,
caused by general shortage in the East last
year, followed by the large crop of fruit
there this year. 1t is safe to predict, how
ever, that as the East does not usually have
Two large crops in succession, prices for all
kinds Of fruit will be better next year.
Notwithstanding tie ioloerprices, shipments
Of 8reen fruit for tbs season up to October
14h Uere Heariy four hundred cars in excess
9 shipments for the same period last gear.
The production OF beans has become quite
an industry; shipments to the East in 1880
amounted to less than 100000 pounds,
which Increased to over 24,O00,0J0 pounds in
1890 The bean-grower Is also better pro-
tected under the Mckinley bill, he receiv-
ing protection TO the extent Of 40 cents per
bushel OF sixty pounds, against 10 per cent