The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-11-22
CAUSE OF THE RATE WAR,
Precipitated by a Self:Protective
Move of the Rail.
road.
The Effort to Recover It Led Up to
the Present Three.Cornered
Fight.

It is war now between the Southern
Pacific Company and the Oregon Railway
and Navigation Company until one or the
other cries peccavi.
In view of the bitter and determined
conflict that is on the cause that precipi-
tated it and now acts as the incentive for
its continuance is of interest, as only by
its removal will normal conditions be pos
sible. The history of the trouble which
follows comes from high official in rail-
road circles:
During 1893 and earlier the Southern Pa
cific Company enjoyed so per cent OF all
the passenger traffic between Portland and
San Francisco, but during the depression
that began with 1894 people apparently
became more economical in their travelling
as well as in other directions. AS the
rates then existing showed difference on
first-class fare of about Sill so and SO in
favor of the steamship line people nat
urally were attracted under the circum-
stances to the water route. The result was
that during the past year the proportion
of passengers carried by rail between Port
land and San Francisco was only 20 per
cent In other words, the Oregon Railway
and Navigation Company's steamers, which
ran only once in five days, were carrying
nearly three times as many passengers be-
tween the points named as the Southern
Pacific Company did with its daily and
faster mode of travelling.
Should the present war continue the
Pacific Coast Steamship Company will
make its fight more effective by putting
the Mexico, which 1t was intended TO lay
up for the winter at Sausalito, on the
sound route, and will then dispatch its
steamers every three days, instead OF
every five as at present.
AT the time The Oregon Railway and
Navigation Companys representatives
were here several conferences were held
! satisfactory basis of settlement could be
decided upon. When the negotiations
proved frultless, the steamship men
asserted that the Southern Pacific de-
manded two-thirds of the business, and
this they would not concede. Their YER
sion is now specifically denied by the rail-
road. The latter claim that all they asked
would be able to control 90 per cent Of the
number of passengers travelling be-
tween San Francisco and Portland.
This the steamship representatives
would not concede. They best they would
do, it is asserted, was to submit PROPOSE
ton for the adjustment OF rates, so that
the receipts from this traffic would be
equally divided between the railroad and
the steamship line. This, however, was not
considered fair by the railroad men, who
claim that for the higher fare they ask
they give better accommodations, and that
their profits are no more in proportion or
a passenger than are those of the steam
ship com pany with its cheaper fare.
Travel in all directions on the transpor-
tation lines involved has been greatly stim-
ulated by the extremely low rates, so that
the loss in revenue created by the cheaper
rates is at least partly made good by the
increased traffic,
No recourse has been had as yet to cut
ting freight rates, but should the contest
remain unsettled it is not unlikely that a
freight war may also ensue.