The morning call., 1893-04-15
Ar TICLE
At first blush these annear 10 be fea

At first blush these appear to be features
OF eutthroat war, which will continue
until one of the combatants, either the
Southern Pacific, with the Pacific Mail be-
hind it, or the Panama, with its ally, the
North American Company, is exhausted
and cries, Hold enouRhw In this view it
would be only necessary 10 reckon up accu-
rately the resources of the two bellIgerents
and the staying power OF the weakest to
accurately determine when the end may be
awaited. The final result. indeed, may
probably be anticipated. No carrier nova
days waits till he has paid out his last dol
lar. he surrenders when he sees that that
dollar is preparing to take flight
But In all these wars of carriers an ele-
ment intervenes in the shape of the actual
cost Of transportation. When the great war
between the Eastern seaboard lines broke
out fifteen years ago and the New York
Central carried wheat from Chicago to New
York for 12h cents per 100 pounds it was
confidently asserted that the war would lead
to bankruptcy in some quarter or other; but
when the accounts were made up It was
found that even at the cut rates the Central
was making a little money. Accordingly,
when peace was restored, rates did not go
back to the old figures. The roads found
hhat hbSJ NOuiu iiNO ny Cdll1 kidiu at
25 cents from Chicago to the seaboard; or,
in other words, at a quarter Of a cent per
pound for a thousand-mile run, and no
higher rate than that has since been exacted.
The war taught railroad managers that they
could afford to do business for much less
money than they had dreamed. When Cap
tain Henry Tyler told the New Yorkers
that they ought to be able to carry grain
for half cent pound from the lakes to
the seabOard they laughed Mt him. They
lived to find that they could 10 the business
for half that money and yet pay dividends.
So here, when the Pacific Mail and Occl-
dental and Oriental lines began to carry -four
to China, they made rate which was in
line with their general schedule. They
found that they could not fill up their ships
and had to send them out in ballast 1t
was of course cheaper to take -four at any
rate than TO hire laborers to fill tie hold
with stones and sand. So they made a rate
of So ton on flour from San Francisco to
Hong-Kong and they got some cargo. The
distance Is 69o0 miles; the time occupied by
the voyage about twenty-four days. Thus
the vessels are carrying flour over 5000
miles for quarter of cent pound. and
from the efforts which tho Canadian line is
making to get share of the trade it may be
inferred that there Is money in it, YeLff
any one had suggested when the China line
was first established that it would have to
carry freight at quarter of cent pound
for the voyage he would have been sub
jeet of derision.
The Southern Pacific now offers to carry
secured wool 10 New York or Boston for
SD ton, which is something over cent
pound for an overland journey of $500
wNafN IN ul-r
same distance at Sc ton, or one-third of a
ceut a pound. People call this cutthroat
business. How do they know2 May it not
appear, after few weeks trial of the new
rates, that there is money In them, il the
road is economically managed. as the New
York roads found there was money In car
rying wheat at a quarter of cent pound
from the lakes 10 the seaboard? Nobody,
not even Mr.. Stubs. knows what he can
do till he tries.
These railroad wars are not such terrible