The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1892-08-09
OCEAN AND RAIL COMPETITION.

Suggestions made of the possibilities
within the reach of the true merchant
whose horizon is not limited by the con-
fines of his State, and who has a soul
above peddling, aroused some of the
metropolitan men of trade to encourage
ment of clipper lines around Cape Horn.
The RECoRD-UNIoN some months ago
and frequently since then pointed out to
the merchants Of San Francisco that the
free sea was before them, but not until
recently have they appeared to fully
comprehend the importance of the fact.
And we also pointed out at the time that
the competition between ocean and land
routes in the effort to bring freights into
the country by sea at cheaper rate,
while it would augment the commercial
importance of San Francisco, would open
up new difficulty: That is, to cheaper
rates by sea will create of necessity new
standard Of overland freight rates, for
railways must meet the sea competition
or lose the trade. The full significance of
the statement of the undeniable PROPOSE
ton is apparent and needs, just now, no
repetition of the detail with which we have
heretofore treated it. The prediction we
made is at hand.
Ia the encouragement of clipper lines
sharp contest has opened up between
these carrying ships, and the effect has
sbeen to materially lower freight rates.
The ocean is factor in Pacific Coast
transportation, therefore, that more than
equals in its effect an independent or COM
peting line of railroad, because the former
completes with itself. The question at
once projects itself: What bearing will
this have upon the construction of an
other overland railroad-the proposed
Great Salt Lake road, for instance? The
free highway of the ocean is open to all
corners; it is subject to no tolls or special
privileges; it must remain a powerful
factor in the transportation question,
that, under the influence of future enter
prise, may become paramount in all the
future contests for commercial suprem-
acy.
According to the San Francisco press
the ocean has already, as stated, by COM
petition between lines blowing salt water
brought down transportation rates; if the
present contest should end, there never
can be assurance given that it will not at
any moment be renewed, since the temp
tation to bid for carriage by sea will be
ever present, and the opportunity to enter
the lists will forever remain open to all
the world.
The San Francisco press, becoming
conscious of what that means, hastens to
assure the public that while competition
on the ocean has lowered freight rates
the cutting will be limited in its effect
upon favored lines to fixed minimum,
because a certain number of merchants,
confessing to the fear of the inevitable
which we early pointed out, have SUBJ
scribed to guaranty fund pledged to
subsidize the favored clipper lines to the
extent to which they may run behindn
under the influence of competition with
other clipper lines. That is to say, if the
guarantors can do it competition shall
not affect injuriously the new lines. But
it remains that there will be, and can be.
no restraint upon unguaranteed lines
continuing their competition and the
lowering process. No one for moment
believes that any permanency can be
assured of the character indicated; the
clipper competition will have its way
and freight rates will be awaited of by
sea that are lowest.
The situation then is this: The metro
politan press declares in one breath that
the sea can triumphantly compete with
land lines overland, and in the next ex-
presses its conviction that new capital
invested in overland railways must Of
necessity reap rich reward upon the
o. hot