The morning call., 1893-04-14
READY FOR WAR.
The Navigation Company
Is in the Fight.
WILL MEET RAILROAD CUTS.
The Traffic Association Takes Up the
Proposition of Railroad FROM
Bakersfield to Stockton.

1HtL luc NOIll american NAVIGATION
Company is cutting Big figure in transpor-
taton matters has been clearly demon
strated by the events of the past few weeks.
The most startling recent Developments
come from the corner of Fourth and Town
send streets.
The Southern Pacific Company has de-
clared war on the American Navigation
Company, and being practically loose from
all rate agreements, has started to slash
rates and drive the new competing line off
the face of the earth.
j. c. Stubbs, the third vice president. tel
egraphed East yesterday some commodity
rates more than 80 per cent reduced, and il
Is commonly understood that a wholesale
slashing of freight rates will follow shortly
afierward.
Mr.. Stubbs makes no secret of this, and
boidiy announces that the Southern Pacific
VIII hereafter act Independently of all other
roads. ana That II will carry freight from
New York to San Francisco and from San
Francisco to New York as cheap or chea per
than the competing steamship line.
This move is, as a matter of course,
prompted by the low tariff recently estab-
lished by the Panama Railroad Company
and the North American Navigation Com
pany.
To show that he is thoroughly in earnest
and that he Is authorized by Mr.. Hunting-
toH 10 ACT, MI. StubDS telegTaphed the fOl-
lowing rates among others to the Trans
continental Association headquarters in
Chicago for approval:
From San Francisco to New York, per
100 pOnnds-Wool, in grease, formerly 81 so.
now 20 cents; WOO, secured, formerly
30 cents; wine, formerly 81. now 80 centss
rags (not quoted In former tariff. now 65
cents.
The cargoes carried by the steamers of
the North American Navigation Company
which have sailed from here to Panama so
lar have been composed principally of the
commodities mentioned in Mr.. Stubs dis
patch.
Mr.. Stubbs declares that these new rates
will 20 into effect at once, whether the
tTanscontinental freight rate committee
approves OF them or not; and, what is more
he announces at the same time that these
reductions are only a faint indication of
what will follow soon in the same line.
But fortunately the North American
Navigation Company is in pOsition 70 do
whole lot of fighting itself. II can stay in
& losing light for two years or more, if
necessary, SO that it need not be feared that
1t will be driven out Of business.
II the Southern Pacific Company intended
that this unexpected declaration of war
would be received with dismay by the
officers of the Traffic Association, or those
OF the North American Navigation Com
pany. they ulsde big mistake. for The effect
tulN HUSlllC nUNSmeut HhQ WAS very mQEl
different.
"There is nothing surprising in this cut
OF rates or in Mr. Stubbs' threat Of further
reductions" said Traffic Manager Leeds,
when he was seen about the matter. and
being asked for a statement he continued
about as follows:
Tho PEOPLE of this State will now realize
more than ever that the Traffic Assncia-
tons work has not been in vain, for one of
the main purposes for which we were prin-
cipally organized seems now to have been
accomplished, namely: the reduction of
transcontinental rates.
These reductions are Just so much money
saved TO the local merchants. and every
dollar Mr.. Huntington charges less goes
into the shippers pockets
IF the merchants realize this, as they
cannot help but do in view OF the facts
as they exist. they Will surely not hesitate
IN using part Of that money we saved for
them to support our enterprises. and. il
they only do that. cheap rates will prevail
for all time"
Speaking of The motive which induced the
Southern Pacific Company to declare rate
war. Mr.. Leeds said:
They hope to exhaust our capital and are
willing TO spend a heap of money to bring
this about, but we have no fear of any such
contingency, because in the first place we
have guarantee fund which is quite suffi-
clentfOr all emergencies, and besides the N en-
who are in terested financially in the North
men who patronize it, so that nearly every
heavy shipper carries his goods over his line
by nsing our steamers.
''Fhe Panama Railroad Company, which
also controls and virtually owns the Colum-
blan steamship line, which latter is the
eastern end Of the North American Naviga-
tiOn Company, is bound by Its contract to
assist US in meeting competition. SO there is
no fear that it will ba Influenced by any,
thing the Southern Pacific or the Pacific
Mail Company will do"
Mr.. Leeds then spoke at length of the
well-knOwu negotiations between the
Panama Railroad and the Pacific Mail Com
pany, before the former entertained any ad-
vanees from tile present rival company.
'"The Pacific Mail Company could have
easily made new contract" the traffic man
ager explained. 'if they had consented to
drop the Southern Pacific subsidy and had
promised TO encourage the sthmus trade in
stead ofsuppressing it, as they have done in
the past, but they would mot consent to
drop their connection with Mr.. Hunting
toms MONOPOLY and the Panama Railroad
Company then was open to negotiation with
us."
Frank S. johnson of the johnson Locke
Mercantile Company, who are the local
agents OF the North American Company,
smiled when he was asked what he thought
of the warlike attitude of Huntin gton,
Stubbs & Co.
Let them slash, cut and reduce rates."
said he. ave can stand 1t if they can, be-
cause for every dollar we lose they lose five,
and even If they don't get tired of IL before
many months are over, we will still be in
the competing business because we have
guarantee for al least two years.
when that time expires matters will
probably look differently: at any rate it will
be time enough to talk about what we will
do or not do then.
For the present we will continue to carry
freight cheaper Than the Southern Pacific
OF the Pacific Mail Company. NJ matter how
they may cut rates, and that is all have to
say about IL.
Captain William L. Merry. the president
Of the new steamship company was fitting
made these remarks, and all he could say in
bis hurry and furry was that he felt just as
Mr.: johnson did on the subject.
The executive committee OF the
Traffic Association at IFS meeting held
yesterday afternoon took very important
step by adopting a resolution. the full text
of which is given further on. to the effect
that narrow-gauge railroad connecting
Fresno with Stockton Is desirable at this
time, and that the building of such a road
shall be agtated and encouraged.
This means that the Traffic Association is
th0rOughlyin earnest in its endeavor TO con-
meet the interior cities and terminals with
the new Panama line as far as practicable.
=. where water Transportation can be used
II VIII be utilized, and from points along
the rivers and bays railroads to interior
shipping centers will be built.
4 narrow-gauge road from Fresno 10
Stockton would reduce local rates from the
ihickly settled and fruitful country through
which it runs greatly and wonld be of vast
benefit to the farmers and fruit-growers on
one side. as we'll as to the merchants here
on the other.
S. n. Griffith, the Fresno member of the
Traffic Associations executive committee,
Is the author and introducer of the resolu-
tlon, which reads as follows: