The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-12-13
THE TRAFFIC ASSOCIATION.

THE CALL has stated the purpose of the
Traffic Association to be TO bring goods to
San Francisco at rates which will enable
our merchants to sell;to interior merchants.
Against this policy the Record Union repre-
sents certain merchants as saying:
We have a vast patronage in our hands We
have at least one-half OF all the tonnage brought
from he East to San Francisco. and we are
served by six independent through lines. IL we
unite the entire volume Of our overland traffic
We can put ii up as the prize for a cheap through
service. one of these lines. the Canadian Pa
eihc is not amenable to the interstate commerce
law. which forbids lower rate Tor longer than
a shorter haul. II the entire volume Of our
trade were offered 10 that road it would sever
its relations With ali the other roads 10 carry our
trade. More than this. The merchants OF San
Francisco united could say 10 The Southern Pa
eIfc or any oheF line having through cOnnec-
tion. that at certain tate Of transportation,
which would be fair they would stay by Ii
against all propositions of cheap competitive
rates, and tn that way guarantee 10 il a steady,
resistant. unavailable volume of freight. This
would starye the other roads into submission.
Tie Record Union indorses this policy as
possible. 1t reproaches MI Leeds for not
having adopted it. The suggestion is made
that the Canadian Pacific might have been
made use OF TO establish low rates. We
can imagine what an cutlery would be made
If the merchants of San Francisco had en-
ployed a subsidized foreign road not sub
leet to cur laws 10 break down an Ameri-
can road. The position the San Francisco
merchants are advised to have taken would
be untenable as we'll as unpopular The
Southern Pacific would have complained
with justice that competition with a road
that had government treasury behind il
Il =; al,
through freight by high charges on way
freight was unfair. San Francisco mer-
chants could never have maintained a rate
arrived at through threat to combine with
foreign road. AS for the other five lines
that were ready to compete for the business
of our San francisco merchants, all were
members Of a combine. While it is possible
that some one of them might have been
induced to sever its connection with the
TraDscontinental Association Ia eonsidera-
ton of the entire business Of the merchants
forming the Traffic Association, the rate
would have been fixed by the cost of sery-
ice. The plan contemplates a concentra-
ton nj business over railroad routes. 1t
cuts San Francisco off from the cheaper sea
route. The merchants could not make a
contract with railroad company including
all their freight business while sending a
considerable portion OF their freight by sea.
The Plan the Traffic Association has
adopted opens sea routes to steamers and
sailing vessels. 1t enables San Francisco
merchants to get large proportion Of their
goods al the lowest possible cost. 1t asks
no favor of the trauscontinental railroad
companies but slch as it can enforce
through legitimate competition. The weak
point in this plan is lack of means of cheap
distribution throughout the Interior. This
1t is proposed to obtain through an exercise
Of the power lodged in the people to fix
rates at fairly remunerative point. IL the
Southern Pacific should resist lawful ex-
ereise OF power on the part of the people
through the courts the remedy would be the
construction OF local roads, to be used in
connection with river communication In
reaching the interior. 1t would not take
large expenditure Of money TO free our
merchants from dependence upon a COM
5 pany which. in view OF its immense bonded
Indebtedness. cannot perform cheap service
even if it would.