The record-union., 1894-11-02
WHAT COMPETITION WILL DO.
How the San Joaquin Valley May be
Benefited.
from the Fresno Expositor

DSHehLSu.
From the Fresno Expositor.I
In recent issue the San Francisco Post
asks the question in general terms: What
would happen to the Bakersfield and
Stockton road, proposed to be built bv
the Irafnc Association, if the Southern
Pacific Company should make Fresno
bakersfield, Merced and other leadin1
points in the San Joaquin Valley termi-
nal points with equal privileges as to
freight rates? The Post proceeded In
snow that In such case there would be
no local rates on goods imported from the
East. or on the products of California
sent East, and that as the Southern Pa
cihc Company would carry their goods
without local rates, road having no
Eastern connection and having no other
patronage than local freights would neces
sarily have no tonnage.
Inc suggestion Is far-reacning as to its
anticipated elect upon the proposed new
railroad. But it would be entirely in
consonance with the wishes OF the San
joaquin Valley to have its principal cities
made terminal points. II the building of
the Stockton and Bakersfield road will
give San Joaquin Valleys commercial
centers terminal privileges, it would be
welcome lnstrumentality. The effect.
however; on the earning capacity of the
new road when built would be disastrous,
This might be very readily admitted. but
as we understand 1t, it is not being bnilt
with reference to profit. 1t is going To he
operated solely for the benefit of shin
pers; at least, that is the phase put on il
when subscriptions are asked for. IT ia
to be phllanthroplc eleemosynary rail-
road. The men who put their capital into
1t do not expect return OF the capitaI or
interest on the investment. They are 90
ing TO operate II only for revenue tn kear
up its physical condition and pay the cost
OF movement.
If, on the other hand, this is not trua
and they are going to operate the rail-
road with reference 10 the production of
proht on the movement OF freight and
passengers, then the Stockton and Bak-
erstield Railroad will be operated from the
motive which inspires the operation of
all other railroads. and will present no
different manifestations from that already
experienced by shippers.
In the meantime, however, let the rail-
road be built, and let the suggestion that
is put forth, that the Southern Pacific
will make through points of the COM
mercial centers OF the San Joaquin Val
ley, be carried into effect While IT is
true that that will eliminate all local
charges on products exported or mer
chandise imported, it is at the same time
true that the San Joaquin Valley will be
greatly benefited. San Francisco would
Hot 10 pohohVOu Dy tiiS IOau, since 1t
could have no through business nor any
part of any through business. 1t could
do its local business between San Fran
cisco and the San Joaquin Valley. and
the mercantile interests of San Francisco
would be the chief beneficiaries. We
hope San Francisco will do this valley
the favor of constructing this road with
San Francisco capital. Thus the South
ern Pacific Company as a means of COM
petition will make our principal cities
through points, giving them terminal
rates on both incoming merchandise and
outgoing products.
1t may be remembered, in this connec-
nection, that for the past six years Fresno
has been terminal point on all products
exported, and that the rate from Fresno
to Eastern through points is the same as
from Sacramento and other terminal
points on this Coast