The morning call., 1892-08-18
STUBBS' LITTLE PLAN.
Low Through Rates and High
Intermediates.
NULLITY OF THE INTERSTATE LAW.
A Fifty-Cent Rate to New York and q
Dollar One to Ogden.
Great Rush Of EaStbOund FreightS for
the Clipper Ships-l Big Out.
bound Tonnage.

Hard knocks are being given the railroad
monopoly just now by the diligent workers
of the Traffic Association.
If the clipper ships keep coming in and
loading up at the same rate that they are
now doing, there will, as a matter of fact,
be nothing left Of .the once mighty Sunset
route.
Badly demoralized as they now are, the
Southern Pacific men will not admit that a
crushing defeat awaits them.
That clipper business is all very we'll for
the time. but il will not last long," they de-
clare.
That is where they make big mistake.
Clipper-ship competition is here to stay.
Canned goods shippers are now sending
their product around the Horn and then by
water or rail as far West as Milwaukee at
the rate of 40 cents hundred pounds, and
even less
The direct rail rate is 81.
That is big difference.
The shippers like the reduction so we'll
that they are going to keep taking advan-
tage of it until they shall realize permanent
benefits.
Tney all declare they will not take their
freight from tie Horn route, even though
the Southern Pacific should reduce its rates
80 per cent, as It proposes doing.
A fat rate of 80 cents hundred pounds
for all classes of freight may yet be made
on the Sunset, as was done at the time the
Transcontinental Association went TO pieces
several years ago.
Five dollars ton is the rate now charged
by the clipper ships. That is 25 cents a
hundred, but, of course, to this must be
added interest and insurance.
AS whole. it is away below the railroad
rata aud taa II inn Gaftc f.4d
j. {. Stubbs viii arrive in New York
about tie 22d inst. he will then make
known his programme TO the other mem-
bers of the ITanscontinental Association,
who are going into the meeting on the 24th.
He wants general reduction of through
rates. both east and west bound.
He may get 1t and he may not.
The other lices have no particular inter-
est in the matter. They rather enjoy see
ing StubbS sweat
''The Sunset has been taking 90 per cent
of the railroad business from New York TO
California" they say, "and we Will gain
nothing by putting down the rate. Ii would
help the Sunset only.
SO they don't care
1t will doubtless result in the Sunset do
ing some vigorous independent cutting.
which Will make the other lines put down
the rates on the little they haul, and will
bring forth strong opposition from the
Union Pacnc, which has already threat
ened to give the Central Pacefc the go-by
on through business, and land freights in
San Francisco by water via Portland.
This could be done, and the Union Pacific
is in the humor to do it, for it has become
disgusted with its treatment at the hands
Of the Southern Pacific.
On canned goods. which are lust now a
very big item of eastbound freight, the
Southern Pacific wants TO make a rate OF 90
cents hundred to New York. 90 cents 10
Chicago, 20 cents to Kansas City and 81 TO
Denver, Ogden and salt Lake.
Double the rate for less than half the dis
tance.
This shows that the interstate commerce
law is a nuilitY.
The 5O-cent rate TO New York would
nearly meet the rate of the clipper ships
and the Gamers would be tempted to ship
by rail, as they could land their freights in
the East so much quicker.
As il now stands the cannerymen are In a
demOTalZed state. Many of their customers
who have been ordering shipments by rail
have been telegraphng TO the shippers to
hold the goods until after the railroad-rate
business shall be settled. The Eastern men
see that there Is bound to be big cut In
railroad fieights and they want to take ad-
vantage OF ii.
But it has resulted In the filing up of
goods in warehouse and some OF the smaller
Gamers vino cannot afford TO carry stock
will lose money.
Meantime. however, independent ship
mentS 10 the extent of hundreds of tons are
being started East by tie Horn route. One
nTm shipped nearly 500 TONS or about 20
carloads, by sea yesterday.
There was great rush for eastbound
tonnage yesterday, as indeed there is every
day during the present busy shipping sea-
son.
The shippers fall over each other in their
frantic efforts to get their freight aboard
ship and away.
The Rosenfeld line had three vessels load
Ing or ready 10 load yesterday. One Of these
hnlshed taking cargo, another was nearly
loaded last evening and still another was
ready to load.
Ii was all done with dash. and the first
shipper III Was lucky man, for it was not
long before freight was being refused.
Such lively times in sea freigntage have not
been witnessed here for years
Thousands Of tons of freight will be put
aboard ship during the next fortnight.
1T ali comes out Of the Southern Pacific
Commodore Leeds looks on aud smiles,
but he is also directing much of his time 10
the study Of the local rate situation.
1t is significant fact that the Southern
Pacihc can carry through freight to and
from New York for nothing and yet make
big money by the end Of the year.
High local freight rates will carry IL
through.
While Jimrae of San Jose is seeing how
much time be consume in ''investigat-
ing" the local freight rate situation. Mr..
Leeds is figuring on how he can knock the
bottom from under "the Railroads Commits
sion" The fight is to be fought at the COM
ing election.
And then that competing overland line
perhaps we Will get that too, ana San Fran
cisco may yet be more than mere cipher
on the railroad map Of the country
Altogether these are interesting times in
railroad tTaihc circles, and particularly in-
teresting for Mr.. Stubbs