The morning call., 1893-05-17
OUR NATURAL ADVANTAGES

The Visalia Times has the following:
san Francisco offers an object lesson in a
large sense Of the folly of relying on location TO
control trade. That city has allowed Tacoma
and Seattle on the north and Los Angeles on
the south to divert large portion of The trade
that naturally belonged 10 her. With the finest
harbor on the coast The merchants of that city
probably thought that the whole Pacific Coast
would pay tribute TO them without any effort
on their part TO make the communication pleas
ant and cheap. After losing one-half of the
trade that formerly came to them, they are now
aroused to the necessity OF saving what Is left,
and the railroad from Stockton 10 Bakersfield
is one of the means to be used to that end.
Our Visala friend does not state accu-
rately the causes which led to the loss of
trade from the north. These causes were
recently set forth at length in THE CALL.
The high transportation rates between
Oregon and San Francisco diverted the
products of Oregon to Eastern cities San
Francisco was, perhaps, too sure that her
natural advantages would do more for her
than they have done When her merchants
saw that low freight rates were causing
wool from Oregon to 60 East instead OF
coming to this city they should have done
what they have been driven at later date
to do. All the natural advantages in the
world will not overcome any considerable
excessive charge on freight. Goods will
not take the route of natural advantages at
their own expense. The value Of natural
advantages lies in tile ability it affords to
offer the cheapest route. If the Southern
Pacific Company had been under the con-
troll of farsighted men it would never have
permitted freight to move on other lines
at lower rates than on the lines 1t
con trolled. The ultimate prosperity of
that company depended largely upon
drawing the products Of as large a
portion OF the surrounding country
TO San Francisco as possible. But
the Southern Pacific Company was con-
Quoted on the principle that the first object
of a railroad company was TO pay interest
on bonds. That principle would have been
correct if the bonds issued had represented
capital invested in the road. But in the
Southern Pacific case bonds were issued in
excess of the cost, and trans portation
rates we're made to cover fictitious oper-
atlng expenses and an excessive interest
account. The consequence is that San
Francisco finds itself in the necessity of
duplicating most Of the Southern Pacific
system, The city now proposes to take
advantage of its natural advantages. 1t
proposes to make transportation on lines
leading to this citv-ss low per mile as on
lines leading 20 other cities. This done
the shortest route will naturally get the
buik>Sf the business. The interior Of the
State is no less interested in this work Of
competition than San Francisco. If goods
can be brought from centers of production
10 San Francisco by water routes and dis
tributed to interior California cities at
lower rates than these interior cities can
be served by the railroad the interior cities
have the benefit Of lower prices. The in
timation so often thrown ont by the organs
of the Southern Pacific Company that San
francisco merchants viii not put money
in transportation enterprises Is based upon
the hope that they will not If the work
oil establishing competition goes on another
year with as much success as has attended
1t IN the past year the Southern Pacific
Will carry freight for what 1t can get rather
than for all the traffic will bear.