The morning call., 1892-09-07
IT IS ALL BROKEN UP.
The Railroad Pool Gets One
More Hard Knock.
Gha Merchants, However, Are More Interested
in the Reduction Of the Local
Freight Tariff

The Canadian Pacific Railroad has given
notice that after January it VIII no longer
be member Of the Trausc0ntinental AsSo-
citation.
This news was received yesterday in this
e city. and at once caused considerable dis
cussi0n.
The Great Northern and the Rio Grande
Western roads declared their intention to
leave the combine when the association met
recently in New York, but it was not eX-
pected that the Canadian Pacific would take
a like course.
The general opinion among the merchants
in this city is that they can gain nothing by
q fight Of the transc0ntiDental roads or by
the dissolution of their association.
II there is to be war Of rates it will not
benefit San Francisco materially because
other cities viii be placed IL position to
c0mueJe even with more adVan tage than
they now have for the local trade.
Tie Southern Pacific Company viii be
the only loser if the northern roads COM
bine against il, for it now controls 90 Der
cent Of the transcOntlnental and direct Eu-
TUpean traffic.
"A cut # rates will lower Mr.. Hun ting
tons cOmpany's income more than that Of
anv Of is rivals, because the Fourth and
rates to meet those made by the other roads,
and since they carry ten or twelve times as
much fTeight across the continent as any
other road. their losses must be necessarily
ten or twelve times laTger.
One OF tie most prominent orY-goods
merchants in the city, whose firm imports
vast quantities Of goods yearly, said yester-
dav that be did not care 10 have any reduc-
tton of transcOntinental freight rates.
1T would not make any difference to me
~.l.Ao
on goods from New ! Ork or Europe, said
lie, aud when asked 10 explain this appar-
emily strange assertion be said that il the
roads carried his goods free from New
York or Chicago to this city they would do
the same thing for Los Angeles or Fresno
merchants.
If the man in Fresno can buy goods in
Chicago and have them delivered free Of
freight charges how can | sell him any
thing" queried the merchant, ''if he has 10
pay freight on everything | offer him from
here TO FTeSn0?
This explains the situation.
The local freight rates alone are what are
troubling the mercantile community. The
lransc0ntnental business does not concern
them nearly as much.
" The Traffic Association takes the same
view.
e.: .AFr Leeds said Yesterday that local CON-
petition is needed far more than trans
Confidential Tatc-cutting and that 1t has
always been recognized by the association
that such IS the fact
There is oaly one true remedy for the
San Francisco merchants, and that IS the
building Of a road Of her own across the
continent, with connecting local branches"
Mr.. Leeds said. and continuing. he added
1T would not do San Francisco any good
TO have any OF the great trunk lines build
=. TO this city, for their rate fights are only
temporary, and after they restore peace
among themselves they will combine to
cinch the merchants as much as they ever
did before the war.
THE building of the Great Salt Lake
road by san Francisco capital will place the
people here Ia position 10 be independent
and nothing else viii bring this about"
So spoke Mr.. Leeds, and so feel nearly
J ali the members Of the Traffic Association.
= The clippership competition and the out
lock for a transcOntinental rate war has
. evidently stared the Kentucky corporation
into "A state which makes IL necessary for
them to make friends among the principal
shippers.
A sleek young man in the employ of the
Southern Pacific Company Is touring the
business portion Of the city at the present
g. for the purpose Of interviewing large I'M
porters.
This young envoy of Mr.. Huntington tells
the merchants he visits that they should not
listen TO any rival company, be il clipper.
steamer or railroad competitor, because the
southern Pacific has positively decided that
II Will do as much for them and perhaps
more than any other transportation line can
possibly offer.
Then the sleek young man asks boldly
that the merchant should let bygones be
bygOnes, and that he should forget all
about how the Southern Pacific Company
has robbed him in the past
After that lie departs.