The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-01-06
RAILROAD MANAGEMENT.

The announcement that the Transconti-
mental Association has re-sntered into an
arrangement with the Canadian Pacific by
which the foreign road will be allowed to
carry freight from Vancouver to American
Eastern cities confirms the impression that
between Congress and the American rail-
road managers the transportation problem
has been pretty badly muddled. The essen
tial facts are these: The Canadian COM
pany has a longer route; it has greater diff
culties TO overcome; it depends almost en-
tirely upon long hauls for business. and
yet it cuts under the shorter and more
eusily run American roads, which run the
greater part of the way through thickiy
settled country. How is this feat accom-
pished? The American managers say that
the Interstate Commerce Act is the principal
cause of the inability Of the American roads
to compete with the Canadian road. The
American managers say that they grant
the Canadian road differental rates because
If they did not the Canadian route would
take all their through business away from
them. This is a pretty state of things.
The cost Of carrying freight by the Cana
dian route Is necessarily greater than by the
shorter American routes. yet the Canadian
| route drives its opponents from the teld.
The solution Of the transportation problem
viii not be found by building up a foreign
line. We want cheap transportation, but
we want il on American routes. II Con-
gress has made competition by American
roads impossible Congress should revise its
! own work. Ii the Canadian rOad receives
| such aid from the Government that it can
| do business below cost, it should not be al
! lowed to carry freight between American
! points 1t is a known fact that by treaty
| and Treasury orders issued in construction
! OF treaties the Canadian road is permitted
! to engage in a trade that foreign vessels are
! declared from. A foreign vessel cannot
| take freight at San Francisco and
| deposit it in New York, but a
/ line OF steamers connected with the Cana
| dian Pacific Railroad does take freight in
! San Francisco and does land it through
| Eastern come ctiOns in New York. There
! IS one law for the ship and another for the
| railroad. There have been TumOrs from
| time to time of purpose on the part of the
| Treasury Department to put a stop to the
! transportation of American freight through
| Canada In bond. But all these rumOrs have
| come to nothing. The influence of the East
| ern railroad system is eXerted against such
! action. The New York Central Railroad
/ has recently improved lis con, atiOns with
Canadian roads and is now taking freight
| from some point in Eastern Canada that,
| under the law governing the transportation
| of freight by ships. would come by American
roads. The American roads are largely to
blame for this condition of things. Form
ing combinations among themselves to keep
freight rates much above the cost Of the
service, they have given reason why for
eign competition should be resorted to.
The immense fortunes that have been made
out Of the railroad business in tie last quar-
ter Of a century are the result Of excessive
charges. The Vanderbilts did not make
5000, coo, 600 in thirty years by charging fair
prices for services rendered the public. The
| four men identified with the Southern Pa
/ cific Railroad system did not get their $780,
/ 000, coo, more or less, by faithfully perform
! ing the duty they undertook as agents of
! the people in building the first transcOnti-
/ mental railroad. All the railroads in the
country have been drawn into a c0mbina-
/ ton more or less open, the real purpose of
! which was to keep freight and passenger
! rates 100 per cent OF so above the cost Of the
! services. The result is that roundabout
! railroad through Canada does work at less
! than American prices and our greedy rail
road managers claim that there is no help
| for il.