Los Angeles herald., 1891-10-30
THE RAILROADS.
The Chamber Of Commerce
and President Marvel.
He Tells them Something About
Railroad Business.
Should Freight Rates Follow the
Varying of Markets.
Some Interesting COrrespOndence-Ths 3
Situation as Outlined by the
Chamber and President
Manveps Reply.


ing itself in the question of lower freight
rates east from this section, and yester-
day appointed transportation commit
tee to look into the matter, consisting OF
r. H. Howell, Eugene German and NJ.
Welsh. In connection with this sub
ject some interesting correspondence has
Just passed between Eugene Germain
and President Marvel, of the Santa Fe,
In the latter's reply to number of
queries the position OF the railroad is
pretty clearly defined. The following
are the points in the correspondence:
K. H. Wade, Esq, General Freight Agent,
Southern Pacific Company, San Francisco,
Cal:
DEAR SGR-We beg to present, for
your consideration, some points that we
consider necessary for the promotion of
the best interests OF the shipper and
producer, as also for the larger develop
ment of the industries of Southern Cali
fornia
Referring to the recent east-bound
tariff No. 35, effective the 2lst ultimo.,
we note particularly reduction on dried
fruit Of scents per 100 pounds, which is
simply ridiculous. We are at loss to
understand how the members of the
Transcontinental association, supposed
to be all bright, sensible men, if they
desired to benefit the producers and
shippers of this commodity, could have
imagined that cents per 100 pounds,
equaling $40 per car OF 10000 pounds,
could have been any material benefit to
either producer or shipper.
During the season OF 1890, when there
was great demand for this product, no
one objected to the rate, because the
high prices were ruling, both to the pro-
ducer and to the consumer, and the
shippers could we'll afford to pay the
rate then extant, but this year the mar
ket is fiat on dried fruit, and, where
high prices were ruling last year, this
year, on the same class of goods, prices
have fallen off nearly fifty to seventy
five per cent, and neither the producer,
shipper, nor consumer can stand the
rate now in force of 81 80 per 100 pounds,
that is, to make it all remunerative, or
induce large shipments, and no doubt
large quantities of dried fruit will go to
waste, whereas with a reasonable rate
they could be shipped to market. A
rate OF $l.30 we think would amply pay
the transportation companies, and
would result in larger quantities OF this
commodity going out of the country
than will if the rate remains as it is.
In the past few years it seems to us
that the proper thought and investiga
tion has not been given to the needs of
Southern California by the members of
the Transcontinental association. For
instance, the orange rate last year was
$1.25 per 100 pounds. The crop was a
large one and nearly 1000 cars moved
out of the country at the prevailing
rate, but had it been a lower
rate, say $1.15 to Mississippi river
and points east thereof, 81 to Mis-
souri, river and points west, from five to
six hundred cars more would have
moved, fully 200 boxes of oranges "a
very conservative estimate), which, if
the rate had been lower, would have
found a ready market. -.
The coming orange crop, so far as we
are able at present to judge, will not be
as large as it was last year in certain
varieties that is, SO far as the seedlings
are concerned--butt the gross amount will
be fully as large, and we respectfully
submit that rate of $1.10 to Missouri
river and points west, $l.12@ to Missis-
sippi river, 81 80 Chicago and 81. .25 to
points east tn, eof, would be remuner-
ative to the transportation companies
and at the same time foster the industry
and induce large shipments.
Another commodity that should have
lower rate is beans. A postage stamp
rate of 81 would, we think, create large
shipments. We believe also that the
rate on potatoes and vegetables should
be alike. There can be no greater cost
to the railroad companies in handling
carloads of mixed vegetables than OF car
loads of potatoes, and the risk is no
greater. During the fall and winter
months we believe that large trade can
be worked up with eastern points with
a lower rate.
We respectfully submit that it would
be good idea for the transportation
companies to try the experiment OF
making low rates to be effective for one
year, covering all the seasons and TAX
ing all things into consideration, and
figure their earnings at the end of the
year, in comparison with former years,
where the rates have been higher. We
think that the returns will be in favor
OF low rates.
We would ask your kind attention to
the above, and your kind offices in en-
deavoring to obtain low rates for our
Southern California products, which at
the present rates, will remain at home,
with loss not only to the railroad COM
panies, but also to the producers and
merchants Of this section.
Prompt attention is necessary, for the
shipping season is fast approaching, in
fact, is now on, and we want to see this
the banner year of Southern California,
which it can be made with the aid of
the railroad companies without detri-
ment to their earnings, and will enable
the dealers, if rates are reduced in
proper time, to formulate their plans
toward early purchase of the crops, as
they mature, and it is well known
fact that early purchases stimulate bus
mess and shipments.
Very truly yours,
EUGENE GERMAN,