The record-union., 1893-05-26
THE FREIGHT RATE WAR.

THE FREIGHT RATE WAR.
An article appeared in the San Fran
cisco Chronicle yesterday which declares
that there is a disagreement in the coun-
ellis of the Southern Pacific Company;
that the Searles interest, Governor Stan
ford and Mr.. Crocker charge Mr.. Hunt
ington with having lost control Of the
Panama Railroad through arbitrary con-
duct.
The papers of San Francisco have con-
'tinually declared that the contract be-
tween the Pacific Mail and the Panama
Railroad Company was the means by
which the commerce of san Francisco
had been fettered; that the contract was
the lever for all the expressions which
the Southern Pacific Company were said
to have practiced upon the merchants Of
San Francisco. And now comes the
Chronicle to declare that Mr. Hunting
toms Indifference to the value of the
manacles, which through the Pacific Mail
he was said to have placed on the wrists
OF metropolitan commerce, has lost his
hold and new era has dawned; and at
this point come Mr.. Searles, Mr.. STAN
ford and Mr.. Crocker to bemoan
the loss Of the old relation of
things which they desired should be
perpetuated. This is entirely unfair to
all the parties concerned. New relations
grow out of changes in the line of con-
struction, in the quantity and place of
trade, and there is not the slightest prob
ability that there has been any disagree
ment between the various gentlemen who
constitute the principal stockholders Of
the Southern Pacific Company. The at
tempt, therefore, to make it appear that
the three parties named are primarily re-
sponsible for the relation between the
Pacific Mail and the Panama Railroad,
and that they would not. if they had been
in the management. have permitted the
contract to lapse, is simply gratuitous
and unfounded.
In the same article, Mr.. Frank John
son, who was largely the originator of the
North American Navigation Company.
declares that that company is losing
money. He says: 1--WE are losing some
money, but we can stand it." He also
looks forward to the time when
better adjustment between the overland
roads and the North American Naviga-
ton Company will give the latter the
place occupied by the Pacific Mail. He
appears to desire this. He says: 1.-The
Panama Railroad will be kept open and
will move all the traffic it is possible to Sc
cure at fair living rates. The present rate
figures are too low." He further says
that in the nature of things these rates
cannot last, and they shall be glad to
see them raised to fair-paying figures.
The significance of this should not escape
public attention. Some merchants at
San Francisco started a competing line
for the purpose of reducing rates. They
got all the reduction they anticipated and
much more than they bargained for.
And now comes their chief representative
to say that they will be glad when the
present condition is passed; that it is not
in the nature OF things that this compe-
tition should last, and that as transporters
they will be glad to see the figures of
transportation raised to paying rates.
Rendered into our mother tongue, this
means that the North American Naviga-
ton Company would like to occupy thl
position formerly occupied by the Pacific
Mail; that the old rates were good enough
portation business and get the benefits of
better rates. So soon, therefore, as the
merchants of San Francisco went into the
transportation business they became in
terested in high rates, and they will be
glad to see them returned to the higher
figures. Low rates is not what the trans
porter wants, and you convert a mer-
chant into transporter, with interests in
common with all other transportation
companies, as soon as he buys ship or
builds railroad.
In last evenings Bulletin another in
terview with Mr.. johnson appears, in
which he says:
The present attitude of Mr.. Huntington
toward us has resulted in lower rates than We
would care to see pre- all, and we viii glaoiy
aid and Join At the right Time every effort 20
put them back to the proper figure. There is
no effort on the part o. the merchants OF san
Francisco to unduly depress freight rates. They
all recognize the TACT that the Panama Railroad
Company and North American Navigation
Company are entitled to fair, living profits
and ii rates are put down they are put down
solely by Mr.. Huntington in his efforts to
make us lose money.
After going on to say that he believes
the Southern Pacific Company is now
losing more than 25,OOJ a day, he adds:
''We will gladly welcome any return to
good, common sense on the part of the
railroad officials" There is no necessity
for comment upon these statements-they
constitute their own commentary.