The morning call., 1893-10-26

and have recognized that San Francisco viii
reach best results ultimately by the upbuildiug
OF the tributary territory. and that the interest
Is Identical. The result has ben, 10 Il large
extent, to counter2ct the antagonisms which
have existed between city and county and
which have been encouraged by the railroads.
We think our struggle for A measure or COM
mercial Independence has aroused other COM
munit les to begin similar movements, and the
results must inevitably brlng ii vast improve
ment in conditions generally throughout large
portion of the state.
We desire 10 emphasize the necessity for
going forward with the work upon the lines as
we nave begun and 10 demonstrate the utter
hOpeleSsness OF ever obtaining any material
Improvement in the commercial situation OF
This city and State by any mere argument or
persuasion. In order TO do so we desire TO re-
mind you OF some OF the events and movements
which have led up TO and brought about the
state OF affairs which existed when this assO-
ciaiOD was organized.
1t will be observed our efforts have been d.
rected mainly toward The establishment and
encouragement of competition in transpor "a
ton rather than temporiZing with the old
lines. Besides, we believe the legitimate and
natural channel through which the commerce
OF the Pacific Slope should flow is 10 and from
The Pacific Ocean on al traffic which 1t is prac-
TIC bic to move by sea, aud that II Will 40 move
wien local IA es on this coast are equtably ad-
justed and other determinations and barriers
which have been interposed 10 prevent lis NOV
Ing that way are removed.
Some idea OF this may be conveyed by short
review OF some of the principal methods which
have been employed to destroy the sea COM
meice OF this city. The object we have in
dwelling upon this history j. emphasize the
necessity OF such effective remedies as Will set
tie The question once for all; also 10 demon
stTate the fact that we must proceed to secure
and apply them for ourselves. AT a low esti-
mate the overland lines have within the last
eighteen years sacriflced IN revenue In wars
against the sea lines and paid In subsidy to
neuJraliZe their competition twenty millions OF
dollars, besides the employment Of rvery other
means at their command for the sole purpose
OF destroying The commerce OF San francisco
and forcing the traffic over their lines al price
which would yield profit over and above the
subsidy and other expenses incurred
There is some difficulty in obtaining the eX-
act dates when the various stages OF the MS
tory which follows were effective, but the
period covers seventeen or eighteen years OF
continuous effort 10 keep this city. III fact the
whole State, bottled up. About 1875 or 1876.
when there was but one line Of railroad across
the continent war was made on the racine
Mai, at that time operating over the Panama
route, win the final result that they ac-
cepted subsidy OF $4,000 per mouth TO
the Panama Railroad practically became
party in their contract with the Pacific Mail
IN February, 1878. This practically withdrew
competition on time freight, but did not close
the Cape Horn route by sailing vessel.
The contract system with the merchant was
then resorted TO, which extended from 1878 10
1882; this completed the job The baleful
effect of this system on this city as com
mercial ceuter is still felt. From this system
the idea became emphasized with both he car
rier aud the merchant that 1t makes no dlffer-
eDce what price Is ash ed for service or All
article so long as the purchaser has the money
With which 10 pay for 1t and is obliged o have
it. The idea that il is the duty OF merchant
to have his goods as cheaply as is consistent
with reasonable service, and sell them ac-
cordngy In order to develop The trade. was
completely sacrificed, and everything seems TO
have been done on the basis OF all the traffic
would bear When the contract system was
fully established the subsidy 10 the Pacific Mail
was reduced To $4,000 per m0nth.
Next followed the transcontinental pool,
which was organized with the advent OF other
lines OF railroad into tn territory. Bear In
mind that what now follows proves that so far
as the interest of the commerce OF this coast Is
concerned the through lines extending here
from the East are all actualed by the same mo-
tive-to destroy the commerce of this city and
State. The pool assumed the subsidy Of the
Pacific Mall, and also arranged the control OF
the rates of the clipDer lines by rate and ton
mage agreements. The pool collapsed IN rate
war with the Santa Fe in 1886, and was not re-
organized because OF the advent OF the inter-
state commerce act, Ell ctive April 5, 1887.
The TranscontinenIal Association was or.
ganized In December, / 887, and became effec-
tive January ], 1888. wbereupon the subsidy
to the Pacific Mail was resumed at 500, 900 per
month; afterward increased TO $4,000 IN
1889 anc continued up 10 December 81.
1892 Relations were also resumed win
tie Cape Horn lines, which continued
York by the merchants of this city. Even this
was not considered sufficient TO keep this traffic
absolutely under their control. One further
strp was taken during the life OF the Traus-
continental association by the estaDiishme
of differentIal rates 10 ana from points west of
New York on such goods as may be shipped by
sea- giving to Pltisburg, Buffalo, Cleveland.
Detroit, Cincinnati, Chicago. 81. Louis New
Orleans, Kansas City, Omaha, st. aul and
Minneapolis an advantage of from cents to 90
or so cents per 100 pounds in the trade OF this