The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-10-12
THE TRANSPORTATION PROBLEM.

The attitude the Transcontinental Rail-
road Association has assumed toward the
IegpIe who do business with the several
railroad companies furnishes an argument
in favor Of the Government ownership of
railroads. The TTaGsContinental Associa-
ton has put itself in a position to dictate
the terms upon which service will be rem
dered. 1t SAYS in effect that if shippers do
not like their terms they may do the best
they can without their service. Under the
arrangement which the Transcontinental
Association has formei, there is practically
but one railroad company in the country.
The officers of all the railroad companies
have representatives. in the association, and
ale bound by its DEGREES. Tie only cOndi-
ii n upon which this association could be
tolerated Is that it should be Just. So long
as it should exercise ITS unlimited power
wisely and impar!ally, people might be
con,ented under its rule. The theory of the
association is that each member shall look
out for the section in which it operates The
Southern Pacific Company should look out
for California. the Northern Pacific for
Oregon, and any and all other roads for the
untry they occu Y. But it seems that,
either through lack Of influence or desire.
the southern Pacific has not taken care Of
California. 1t has at least permitted rates
Of freight TO be established on California
products going East very much in excess of
the rates charged on Eastern goods coming
West. In some cases it has been found
cheaper 10 send goods to New York by
water and then send them westward to the
point If distribution than to ship them East
from San Francisco. This elbow route has
been utilized in spite of the fact that the
owners of Y essels are, or atleast are believed
to lie, accepting rates established by the
railroad association. The association de-
tends its existence on the ground
that If all the companies were net
brought practically under one manage
meHt ruinous competition would ensue.
There is a proposition now to meet combi-
nation with combination The railroad rule
OF charging all an article will bear places
the producer in a fix. He is not allowed to
make any profit in good years as an offset
for the losses of had years. The associa-
ton fixes its rates on the profit there may
be in the producing industries in good years,
leaving the producer to look out for himself
when from any cause a reduction in the
prices Of his product renders its established
rates Improbable. The purpose of the
Traffic Association to be organized in this
city next Saturday is TO create second
party TO a contract, At the present time, in
respect to railroad charges, there is but one
The railroad establishes its rates, and the
shippers have no choice but to accept them.
The business men Of the State have come to
tie conclusion that contracts of this nature
would | e more equitable if there were two
parties to them. Precisely what remedy
will be adopted no one rs yet knows. If
the TranscontinenTal Association cannot be
br' ught to terms an effort will probably be
made to detach some road from this Rail-
road Trust An assurance Of sufficient bus
mess at fairly TemuHerative rates might in
duce some one of the companies to with
draw from the association and resume COLI
troll Of its own business. If the people
would act with thedegree Of unanimty that
CharacteTizes railroad management a rem
edy for the evil pointed out would soon be
found