The morning call., 1893-05-21
BUILDING UP TRADE.
Tie Los Angeles Express says:

Inc Los Angeles EGpreSS says:
Under existing conditions the wholesale mer.
chants Of Los Angeles have the advantage OF
their San francisco competitors in supplying
the trade of the San Joaquin Valley 1t is
largely because OF this comretition that the
Traffic Association. composed OF San Francisco
merchants, wants to see new line constructed
in the valley. They think that the effect of
competition would lower rates from the in
terror 10 tidewater, and that this would
enable them TO overcome the advantages
now enjoyed by Los Angeles. 1t Is not, of
course, tender regard for lhe interests
of the people OF Bakersfield Fresno or
Visalla that animates the Traffic Association.
The extension OF the Santa Fe system from
Southern California, through the San joaquin
Valley 10 San Francisco. is only matter of
time, and perhaps'of only year or TWO. This
will give the San Joaquin Valley whatever
benefit there may be from direct competition
with The Southern Pacific system, and Will at
the same time increase the facilities for trade
with Los Angeles. The Santa Fe line would be
entirely beyond the control of the Southern
Pacific, while any mere local line, such as the
proposed road from Bakersfield TO Stockton,
might soon fall into the hands of the Southern
Pacific.
The CALL does not know upon what
authority the assertion is made that the
Santa Fe liIe would be entirely beyond
tile control of the Southern Pacific. The
experience of the people of this country is
that railroad companies will pool their
issues wheneverit Is to their interest to do
so. Wien railroad company finds that
competition is inevitable it naturally pro-
ceeds to make the public stand as much of
the necessarily increased cost of transpor-
tation as possible. Two railroads that
pool their issues may be harder on the
country than one, as there is heavier bill
OF expense to meet. The public will have
security that the Stockton and Bakersfield
railroad will not fall in the hands of the
Southern Pacific in the fact that it is for
the interest of the builders that it should
remain independent 1t will be the route
through which the merchandise brought
to this city by the North American Navi-
CATION Company will be distributed in the
southern counties. The builders of the pro-
posed road would no more permit it to fall
under the control of the Southern Pacific
than that the North American STEAMSHIP
Company should become an appendage of
the Pacific Mail Company. So far as COM
petition between Los Angeles and this city
is involved there is no occasion for hard
mostly by the steamship route, and will
distribute them as far south as it may find
profitable. Los Angeles will receive goods
either by the water route or by the two
railroad companies, and will distribute as
far north as it can. This is wholesome
competition. The distance between Los
Angeles and San Francisco is greater than
the distance between New York and
Boston and much greater than between
New York and Philadelphia There is
room for both cities as there is room for
New York, Philadelphia and Baltimore
within few hours ride of each other.
Trade is most securely built up on COM
petition. Monopoly constantly invites at
tack. Combinations are equally as de.
structive to trade. In the long run the
cost OF railroads comes out of the people.
and if two combine to do the work of on e
they agree upon rates to cover the expenses
of both.