Los Angeles herald., 1892-02-02
THE RAILROADS.
A Northern Opinion on the
Santa Fe's Cut.
Some Wild Talk About RemOv-
ing General Manager Wade.
The Santa Fe Will Continue the
Orange Rate Indefinitely.
The Southern Pacific Oficials in San
Francisco Think There VIII Be War.
A Point About Hynes's Rate Not
Generally Understood.

The Chronicle, of San Francisco, pub
fishes the following remarkable state
ment about the Santa Fes cut on the
orange rate:
"The Santa Fe has gained great ad
vantage over the Southern Pacific in
handling the orange crop this year.
When the new reduced rate of 80 cents
hundred was made recently by the
Transcontinental association it was un-
derstood by the Southern Pacific freight
agents that it was not to go into effect
until the 1st prox. The Santa Fe
agents, however, put the rate into effect
shipments were taken by the Santa Fe
in trainloads, while none were taken by
the Southern Pacific. When the Santa
Fe agents found they had exceeded their
authority in making the rate premature
ly they tried to "hedge," but the ship
pers insisted ON it that they had loaded
their freight to go at 80 cents
a hundred, and unless it was car
ried there would be some big law
suits begun. So the Santa Fe trans
ported the oranges east, though 1T was
against the rules of the Transconti-
mental association. All the roads will
be at liberty to quote the 90-cent rate
tomorrow, but as the Santa Fe has OBJ
tanned the start of the others by its
alleged misunderstanding it is in posi-
tion to gain the bulk of the business for
the season, and is finding its mistake
very profitable.
"There is, however, likelihood that
the advantage gained by the Santa Fe
will be followed by penalty. The COM
petitors OF that line declare that as Gen
eral Manager HI. K. Wade of the Cali
fornia Southern road, which is part of
the Santa Fe's system, made the rate
without authority he is subject to re-
moval from his position under the agree
ment, and the matter is now under con-
eideration by the Transcontinental and
Western Traffic associations.
There are wild reports of proposed
retaliation on the part of the Southern
Pacific unless some punishment of the
Santa Fe for violating the rules is meted
out, bat the agents of the Santa Fe here
say they have no fear of any hostile
action on the part of their competitor,
and allege, furthermore, that there i'd
very little profit in carrying oranges at
80 cents hundred pounds, a fact which
the Southern Pacific knows 30 we'll that
it will not cut below that figure, as is re-
ported"
1t is folly to suppose that the Santa
Fe company adopted the measure
spoken of without fully counting the
cost, and it is also certain that Presi-
dent Maxwell would let the Transcon-
tinental and the Western Traffic asso-
Citations go to Guinea before he would
discharge General Manager Wade. The
latter has the entire confidence of Mr..
Marvel, and the regard the former has
for the latter is such that he would
stand by him through thick and thin.
1t is not known officially that such is
the case, but it is about certain that
President Marvel knew exactly what
Mr.. Wade intended to do, and indorsed
his action.
Mr.. Wade has taken bankrupt,
dowu-at-the-heel property, and made it
a most valuable part of the Santa Fe
system, and further than that has of late
shown himself fully equal to the whole
Southern Pacific company in strategy
and the facility of scoring coups. Mr..
MduVtl Will never leC ulm give up Ills
position unless it may be to take a
higher Office.
CONTINUANCE OF THE ORANGE RATE.
Most people, including railroad peo-
pie. believe that the 9O-cent orange
freight rate will not be in effect after
February 18th. This is so according to
the circular issued by the Transconti-
mental association, but Mr.. Hynes's
little joke, by which the date of the eff
feet if the low rate was advanced q,
week over his competitors, leaves the
date of the rates cancellation open in.
definitely. This is point which the
other roads do not seem to have caught,
on to in their consideration of the mat
ter.
1t was learned yesterday from an ex-
cellent authority, that the chances are
that the Santa Fe will not take anyno-
tice OF the order to restore the rate of
$1.25 on the 10Th, but will continue the
reduced rate indefinitely. At the rains
have prevented shippers from getting
off much fruit, and 80 taking advantage
of the low rate, the action Of the. Santa
F6'will be of great benefit.