The morning call., 1893-10-19
NO MORE DISCRIMINATION.
Foreign Tariffs Must Be Equal
to inland.
REBATES FOR LOCAL SHIPPERS.
Importers at HOng-Kong VIII in the
Future Have No Advantage Over
Those on This Coast.

Commission merchants. especially those
who ship lea TO Eastern cities. were iubi-
liant yesterday at the receipt of certain
news from the East. 1t was only short
dispatch dated New York. and was as fol-
lows:
The United States Court OF Appeals has af-
fiTmed The decision of the lower court on the
application of the Interstate Commerce Com
mission preventing the Texas aud Pacific Rail
road from carrying imported merchandise al
other than inland rates governing other iTelght.
Ibe decision affects large NUMBER OF fOads,
including the trunk lines between the Eastern
seaboard and Chicago and other Western cities.
Although the ruling in this case applies
10 the Texas and Pacific road alone, yet it
acts as precedent and similar rulings Will
at once be asked for as regards the Pacific
Coast roads. For many months tea ship
pers have been watching this case as it was
carried stage by stage through the courts,
and they regard the decision as a great
victory. The Importance of the courts
ruling can be briefly summed up as fol-
lows:
California tea merchants will be enabled
in the future to ship merchandise at the
same proportioDate rate as those who send
direct from China; whereas to-day the lat
ter are benefited by special tariff.
A com bination between the Southern
Pacific Railroad and the Pacific Mail
Steamship Company favnring foreign i'm
porters to the detriment of local merchants
will be broken up.
Several tea merchants in San Francisco
who have expected this npholding of the
Interstate Commerce Commissions de-
cision will undoubtedly secure large sums
in rebate from the railroad.
a SaE Francisco tea-house which is
largely interested in this decision is that of
M. J. BrandensteIn & Co., successors to
Seigfried & Brandenstein of 120 Market
street The senior member of the firm
said yesterday that the news from the
East was the most welcome received IN
years
The railroads have always discrimi-
mated against u.s." said he, land mer-
chants at Hong-KOng and Yokohama have
been able TO put tea in Chicago, St. Louis
and other Eastern cities cheaper than we
could. Our attorneys advised us that
under the interstate commerce law the
tariff was Illegal and we would have at
once begun suit had not the case against
the Texas and Pacific been called to the
attention of the courts. Pending de.
cision, however. we took such steps as
will enable us to reap a benefit. Every
time we have shipped tea from San Fran
cisco East we have done so in 24.000-pound
lots. This is the same amount as Chinese
merchants snip at time. We have always
prepaid the freight and have done so under
a written protest, setting forth as reason
that we were charged more than Chinese
merchants. The time has now arrived for
action and under the ruling Of the New
York Court of Appeals we will sue to re-
cover the difference"
''Is the amount large?" Mr.. Branden-
stein was asked.
"Yes, it is. and il will reach way to the
thousands, just how much l am unable to
say"
''Do you think the rate on tea East will
be lessoned as result of the decision?"
mo. l hardly think it will be reduced,
but the foreign rate will go up. Perhaps
the inland rate will be brought down to
meet the other; but that is hardly rail-
road policy. In any event the rates will
be equal, and that is what we are seeking"
One or two other firms will also sue to
recover the difference of freight rates, but
the majority. particularly the smaller
houses, have been shipping in lots of less
than $4,000 pounds and so are unable to
make the comparison with cargoes direct
from China.
Just why the Pacific Mail and the South
ern Pacific have been discriminating in
this matter of rates against San Francisco
merchants Is not generally understood. A
member of one of the commission houses
ascribed it to the fact that house here
some time ago imported tea by way of
Victoria, and thus caused the wrath of
Mr.. Huntington to be cast upon all local
shippers.
But it is a well-known fact that mer-
chants In the Orient have been able to
p1ace theirigoods in the East at less cost
than San Francisco dealer could. and this
practice will come to an end.
Mr. Dimmick of Dimmick & Low, 221
Front street, said shat the decision would
undoubtedly be made general in q very
snort time.
''It is the best news we have received in
many a day." said he, land will give
great boom to the tea trade out here. Of
course the Texas and Pacific does not carry
any of this merchandise, but under the in
terstate commerce law a ruling that ap-
plies to them applies to other railroads as
we'll and we shall see to il that justice Is
dene merchants on the coast"
The same view was taken by Castle
Brothers and at other tea houses