The morning call., 1893-01-06
A CUT IN RATES.
Great Reduction in Freight
Charges.
The Southern Pacific Is Forced by
Clipper Ship Competition to
Reduce Its Tariff.

The reduction in rates on straight car
load lots of certain commodities went into
effect yesterday.
The Southern Pacifc's reduction counts
for much less now than if it had been made
some tire ago, when there were larger
quantities Of these commodities to move
eastward.
This step on the part of the Southern
Pacific brings to mind the now somewhat
notorious report of Colonel Richard p.
Morgan to the Board OF Railroad Commits
sioners. and shows beyond question what
can be accomplished by clipper ships as a
means or water competition.
Colonel Morgan in his report said +:
"WhateYer the views OF the managers of
the railwa avs may be | do not hesitate to
express the opinion that these rates, under
the existing conditions, are not directly
Temuneratige, and that, therefore. the loss
occasloned by them ought to ba compen-
stated for by clearly defined, direct or indi-
rect sources of revenue from other sources.
Less than a month after this report had
been made, and just as the colonel was pre-
pairing 10 il ave the State because ITO COM
petent person." as he expressed it, had
come forward TO attack his report, Third
Vice President Stubs came forward with
a proposition to cut he rates to which
Colonel Morgan doubtless referred among
other things the rates on canned goods.
The new taIitf went into effect esterday,
and involves a reduction OF 81 per ton TO
Chicago on beans, S. per ton on canned
goods and 50 per ton on brandy.
This REDUCTION has been compelled by
clipper ships, because tho low rates on
eastern roads, added 10 the low rates of the
clipper ships, are sure to make the Horn a
preferred route unless The overland lines
reGuce their rates.
n ,.
report are some what amusing, IN View OF
tee fact that the reductions just made by
Mr.. Stubs were made without any solicita-
lion on the part of the people OF California.
In one place the report reads:
I'll is well TO consider the fact that the
railway companies have an especial inter-
est, in common with the people OF Califor-
MIA, in low rates for the transportation of
the various PRODUCTS of the State for which
it is feasible to find market by rail east Of
the Rocky Mountains
The rates now in effect, however. are
higher to Chicago than to New York, max
ing the price OF California products higher
throughout the West than would seem ne
ceSsary in view of the voluntary reductions
made to points 1000 miles further east.
There is no indication of weakening on
the part Of the Traffic Association, and it is
quite probable that further steps will soon
be taken 10 strengthen the maritime CON-
merce of San Francisco.
Drank Johnson is now in New York and
viii negotiate with the Panama Railroad
Company tor an agreement with the North
American Navigation Company. The
memorandum prepared here ana agreed
upon by the board OF control OF the North
American Navigation Company as TO the
things wanted of the Panama Railway Com
pany is in the hands of MIR. johnson, from
whom information regarding the progress
of the negotiations is expected early next
week.
Railroad men here are as much annoyed
oyer the loss from elipper-ship competition
(Which amounts 10 about 100000 per month
at present. as from The growing fear that
this competiion Will become more general.