The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-05-13
A RATE WAR IS ON.
Southern Pacific's Onslaught
On Panama Steamers.
NORTHERN LINES MUST CUT.
All Transcontinental Roads Will Soon
Be Involve cd in the Struggle
SLOGAN Ore Business.

The Southern Pacific railroad, in its efforts TO
drive the new Columbian Steamship Company
out OF business. has reduced transcons.nenfai
freight rates to a figure which viii have the
effect of forcing the Northern lines to reduce
their rates very considerably, even below the
tariff established on February Is. A telegram
YVES received in the city yesterday stating that
the rate On nails from New York TO San Fran
cisco by the Sunset route had been reduced to 30
cents per 100 pounds, clean cut OF 50 per cent.
on the rate of the three Northern lines from CHI
cago to San Francisco which was reduced from
81. 10 to 60 cents in February.
The Southern Pacific began the war last jan
nary against the Pacific Mail and the Columbian
Steamship Company. and rates have been going
down ever since. The intention is TO drive the
steamers out OF business or into combination
similar to that which existed prior to last Janu-
airy; bat as the Columbian line received sub
sidy of $4,000 from the San Francisco mer-
chants il is armed for fight, although 1t viii
need great staying powers to overcome the
Southern Pacific. The reduction has been made
all along the line OF heavy freight, which is the
class mostly brought around by the Panama
route or by clipper ships
Already Seattle merchants are figuring on
taking advantage OF the cut With such agreas
difference as cow exists between the rates
quoted by the Southern Pacific and By the
Northern lines, it is cheaper to have freight
c;hc and then brought up to the Sound by
steamers or sailing vessels than to ship 1t by
the Northern lines. schwabecher Bros. ship a
large Fart of their freight here by the DIETRICH
line OF ships, and they will now be apt to hsve it
ali sent that wsy. The only remedy will be for
the Northern lines to cancel all tariffs and meet
the rates made in the Southern war fast as
the cuts occur This Is likely 20 go on until
oil parties TO the fight can come TO terms. which
will be when the Southern Pacific or the
Panama steamers weary OF nghting, Tor as long
as they continue TO fight the Northern lines will
have to keep up with the procession, even
though i. leads them into the hands OF re-
ceiversa
This war is likely to put an end to any at
tcmpts Of the Union Pacific, Northern Pacific
and Great Northern to make rates without
gard TO the Southern Pacific and the Panama
steamers At equal rates, the railroad will get
the business, 50 that tie only chance for the
steamers Is to cut lower. As fast as they do this
the railroads come down, aud so IL is apt TO go
on until they get to zero, perhaps with a
free pass thrown in. The party whose
treasury is empty first will be the first
TO cry enough" and unless that Columbian
Steamship Company has remarkably strong
financial backing, il is likely to be tina. party.
Then will come restoration of rates and a sub
edy TO the steamship companies. When that
time comes the Northern lines will have to face
the alternative OF putting up their share of the
subsidies or having war made on them By the
combined forces OF the Southern Pacific and the
steamers. Tic Southern Pacific is getting even
with the Northern lines for their refusal TO join
In the renewal of the subsidy to the Pacific
Mail, so tina. there are three parties to the fight