The morning call., 1892-03-30

CAUSES OF COMPLAINT.

The Record Union repeats that the prin-
cipal cause of complaint on the part of San
Francisco against the Southern Pacific Com
pany is the establishment of terminal
points in the interior at which merchants
receive goods from the East and from which
they distribute goods among their imme-
date trade constituency. The CALL re-
peats, on the other hand, that while some
San Francisco merchants may have made
complaint on this cause, that is not the
complaint of the city. In the articles that
have appeared IN THE CALL, showing how
the Southern Pacific dscriminates against
the commerce of this city, there has not
been one complaint because the railroad
tariff enabled interior merchants to obtain
goods of first hands. The San Francisco
merchant understands too well the laws of
trade to complain because an interior mer-
chant doing business nearer the point of
supply than the San Francisco merchant
should avail himself of the advantages his
location affords. The Sacramento mer-
chant and tie Los Angeles merchant have
as good right to buy goods in New York
and distribute them over the territory they
can supply as cheaply as any other mer-
chant as the San Francisco merchant. But
these articles have shown how a combina-
ton between the Southern Pacific Company
and the Pacific Mail Company has de-
prived San Francisco Of her natural ad-
vantageS as a seaport The railroad con-
pany has paid large sums Of money annually
to induce the steamship company not to
compete with the land company. OF course
the water route is always open to competi-
ton, but the Pacific Mail, with its
Government subsidy. has been a for
midable competitor. While its high
rates have been maintained in the alb
sence of opposition it is not rea-
sonable 20 suppose that they would
be maintained against merchants line
THE CALLS articles have shown also that
the combination between the Southern Pa
cihc and the Pacific Nail has established
higher rates from Central American ports
to points along the line of the Central Pa
ciic west than the same class Of goods were
subjected to by other routes. They have
shown that the one article of coffee could be
carried four fifths Of the way round the
globe and landed at a point One-fifth from
San Francisco at less cost than the San
Francisco merchant had to pay for one
fifth. They have shown also that the
Southern Pacific has Disseminated against
San Francisco in the competition between
San Francisco and Eastern cities for the
These causes of complaint are sufficient
wi.houtdwelling upon the comparatively I'M
important fact that Sacramento merchant
can get goods from the East on as good
terms as are afforded the San Francisco
merchant by the railroad company. The
fact remains. railroad or no railroad, that
San Francisco is seaport city. If it can
obtain goods from the East by sea and sell
them TO interior merchants at more favor
able rates than the interior merchant can
obtain by land transport atom it is entirely
in harmony with the laws of trade that it
should do so. Let the interior merchant
buy where he can to the best advantage.
But in competing with Eastern cities for
her trade San Francisco must have a line of
steamships which the Southern Pacific can
not subsidize. Whether land transporta-
ton or ocean transportation will be found
the cheaper in a close competition depends
so much upon conditions that are subject to
change that only experience will test the
question. Ocean transportation is the
cheaper by the mile, but land transporta-
ton is the more direct. 1t may be added as
a reasonable presumption that the owners
of railroads which establish the superiority
OF land transportation will not make from
$50, 000,000 to $50, 600 in business life
time out Of their roads.