The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-01-03
THE KEY TO THE SITUATION.

Commenting ON the determination of
San Francisco merchants to maintain the
North American Navigation Company the
Petaluma Courier says:
The determination on the part of San Fran
cisco TO keep this competing line in operation
IS one that should not be allowed to wane Upon
II depends The commercial Importance of San
Francisco outside of its immediate local trade
And while This is being secured, that city
should look 10 the Improvement of the navig-
able waters in the interior OF the State. This
would help San Francisco both in shipping and
receiving goods and would enable her to ship
the products of the Interior of the State to the
markets of the Northwest that are now sup
piled by thousands OF miles Of rail transpOrta-
ton Eastern Washington, Idaho and Western
Montana should be supplied with fruits from
California, and could be if II could be gotten at
: sap Francisco by cheap water transported. on,
and then 10 Puget sound by water, thus OPEN
ing the large and important sections OF Mon
tana,- Idaho and Eastern Washington, with
their mineral wealth, as a market for the In
'creasiDg products Of California These three
States. mentioned constitute a vast area and
can be reached as outlined above with only 400
or.600 miles OF railroad. San Francisco once
had this trade, prior TO the construction Of rail-
reads through the Northwest. but 1t was moth
ing in Importance then with what it is now.
The, North American Navigation Com
pany, in connection with the Panama rail-
road, holds the key to the transportation
situation. With this route open i. will
depend upon San Francisco merchants to
say how far this territory shall extend
With tue Improvement OF the rivers and
the construction of railways from head
water points. the Pacific Coast for hun
dIeds OF miles north, south and east, is
within our cas- reach. The North Ameri-
can Company has for the year past done
business at a loss for the reason that the
Southern Pacific has reduced rates in the
hope to freeze out the North American
Company. But is quite within the power
of our merchants TO put a stop to this kind
of competition. When the Southern Pacific
perceiVes that the North American Com
pany has come to stay, it will put an end
to its freeze-out policy. The South
ern Pacific is in no position to
stand a heavy loss. Whenever the
San Joaquin Valley Railroad Company
with a paid-up capital of $500, 600 OF more
is organized, the North American Com
papy will receive the basis Of stability
that will keep competition within paying
lines. The San Joaquin road will set the
to it. The stockholders of the San Joaquin
road Will be their own customers. They
will aim 10 make the line pay expenses,
but their profit, above fair interest on
IN oney, will arise from an extension of trade
which will follow cheap transportation.
The interior Of the State will receive
greater benefit from the construction of
tran Separation lines from San Francisco
than it receives from low freight rates be-
tween San Francisco and the East. Now
goods received in San Francisco are
charged Southern Pacific rates to their
several points of destination. San Fran
cisco manufacturers will find market for
their wares when the cheap transporta-
'tionr which now ends at our wharves, is
continued to interior cities. Subscribers
to the proposed San Joaquin Railroad will
have the satisfaction of knowing that their
system is founded on bedrock. There is
no cheaper method of transport alton than
water The North American Company
brings goods by water and the San Joaquin
and other interior railroads will utilize the
rivers as far as they can be utilized with
profit Light is clearly ahead if our mon
eyed men have the grasp to see it.