The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-04-03
a STARTLING RUMOR.

The coming Of the managers Of the South
ern Pacific has given rise to considerable
speculation. There is a general feeling that
something should be done to save the CON-
pany from business reyerses. The people
are exaSperated at the eXtortiOn the South
ern Pacific Company has practiced and
which as yet it has shown no signs of mit-
eating. They see the city losing trade
which IF ght belongs 10 il and trace their
loss TO the excessive charges of the South
ern Pacific Company. 1t mas been demon
strated that the Southern Pacific Company
pays out large sum of money each year 10
keep tile Pacific Mail Company from COM
ppting. It las also been shown that the
clipper lines are under some kind Of con-
tract not to carry freight East, and il is
known that no other transportation CON-
rany except the Southern Pacific profits by
the withdrawal Of the clipper ships from the
freight-carrying business. The suggestion
has been thrown out that in view Of the
plans for energetic competition that are
forming the Southern Pacific Company
might reverse its policy. Instead Of estab-
fishing freight and passenger rates at the
highest notch the business situation would
permit it has been whispered that the man
ayers might conclude to do a common
carrier business on business principles
that is at rates which cover the cost Of
service and afford a reason able profit to the
road In no other branch of business does
one agent of production assume that the
profits all belong to him and that other
agents should be content to work for a bare
living. Out of the suggestions we have
mentioned has come the rumor that general
and heavy reductions would be made in
freight rates over the local department
of the Southern Pacific system. THE CALL
does not vouch for the truth Of the rumor.
We are only confident that il ought TO
be true. Up to the present time the South
ern Pacific Company has acted upon the
principle of getting all ii could and letting
trade look out for itself. 1t has established
local rates so high that production has been
reduced by the cost of getting goods to mar
ket The old wagon road in some instances
has been as cheap channel 0f transpOrta-
ton as the railroad. II the Southern Pacific
should reduce local rates about 30 per cent
and give an assurance that rates would not
be raised as soon as preparation for compe-
tition should cease there would be a wonder
ful change in the business aspect of this
State. Merchants would lay their plans to
recover lost trade. Farmers would feel that
they were nos working entirely for the ben
eft of the common carrier. Fruit would not
rot on the ground within hundred miles
of a market at prices which would give
growers and carriers handsome profit.
Manufacturers would be encouraged TO COM
pete with the East for markets lying nearer
to this city than to Eastern points OF sup
ply. The demand for labor would increase
both in town and country. The people in
all parts Of the State would experience the
sensation of a giant whose hands were un-
expectedy united. It is not certain that
the railroad cOmpany would not share in
the general prosperity. Ii would at once in
crease its business and might ia time its
profits. 1t would save vast sums that ar G
now paid out to buy off competition. Deal
ing fairly with the public il would no longer
need to control conventions, legislative
bodies and courts. 1t would thus save the
money that In years past has been devoted
to politics. It's so-called operating expenses
might in this way be reduced in proportion
to the reductions made in freight charges.