The San Francisco call., 1896-03-03
FREIGHT WAR
TO THE DEATH,
The Southern Pacific Uses
It's AK on Through
Rates.
A BIG BATTLE NOW ON.
Transcontinental Lines Pitted
Against the Panama Route
Combination.
HUNTINGToN's QUEER POSITION
He Is Using His Railroad Interests to
Injure His Steamship
Property.

There is no longer any doubt that 1t IS
now war to the death between the South
ern Pacific Company, with its allied trans
continental lines, and the Panama Rail
road COMPANY with its allied steamship
lines, on the Atlantic ami the Pacific.
And the most remarkable feature of this
conflict is that to very large extent the
same persons have interests in the oppos-
ing transportation companies, and the
indication are that it is these very persons
having these now diverse interests who are
instigating or at least responsible for this
anomalous condition of the transporta-
tion situation.
When last December C. P. Huntington,
on behalf of the Pacific Mail Steamship
Company, felt it .expedient to sign the
agreement framed by President Simmons
of the Panama Railroad Company
for a through line between New
York and San Francisco via Pan
anna, it excited considerable surprise,
as this agreement virtually gave the Pan
anna people control of the whole through
freight situation. They not only had the
right to fix the westbound rates, but re-
tanned the right to control eastbound
rates to such an extent as would insure
this route not less than 1000 tons of freight
a month, provided the Panama steamers
on the Atlantic side have the facilities to
handle such a tonnage.
That the astute pres ident of the South
ern Pacific Company should have thus
placed the key to the whole transconti
mental freight situation in the hands of
those who were at one time the keenest
and most powerful competitors the Pacific
Mail Company and the transcontinental
railroads ever had was as unexpected TO
the public as it was gratifying to the
Panama Railroad Company. In conse-
quence, every shipper was curious to
see what this apparent surrender of
Huntington signified in reality.
An increase in rates was OF course looked
for, and it came. The figures via the
isthmus route for eastbound freight went
from 35 cents per 100 pounds to 60 cents
per 100 pounds, and those via the all-rail
route advanced from so cents per 100
pounds to 70 cents per 100 pounds, making
a difference of So per ton between the two
transportation routes.
About two months operation under
these rates showed that the So differential
was insufficient to attract business to the
steamship lines. and February 10 the Pan
anna Railroad Company notified the Pacific
Mail Steamship Company that it must
make the eastbound rates on certain COM
modities that could be advantageously
handled by the isthmus route 40 cents
per 100 pounds. After considerable cor
respondence on the matter the Pacific
Mail Company acceded to the request of its
cohtractual partner and sent out the fol-
lowing circular to shippers on February Is:
NOTICE.
BY the Panama route, San Francisco to New
York.
Pacific Mail Steamship Company, Panama Rail-
road Company and Colombian line.
until further notice the rate for the above route
on the following commodities, San Francisco to
New York. viii be 40 cents pei 100 pounds:
Antimony, asphaltum, beans, boneblack, borax
brandy, dried fruit, glue, mustard seed, manga
nese ore, chrome, peas, quicksilver rice, tallow,
canned fruit, barley. wine, canned salmon.
These rates, while announced on Feb
ruary %, cannot go into practical effect
until the 8th inst, as the next Pacific Mail
steamer does not leave until that date.
The Southern Pacific, having had full
knowledge undoubtedly of what was trans
piring, were fully prepared when the pub
lie announcement of the Pacific Mail
Steamship Company was made to take
snch action as would nullify the effect of
these reductions via the Panama route.
Yesterday, accordingly, the Southern
Pacific made 80 1-3 per cent cut on much
the same commodities as those affected by
the Pacific Mail reductions, the new rates
to go into effect on the 7th inst, Just a
day p-ior to the sailing of the Pacific Mail
Steamship pany's steamer for Panama.
These new rates on the rail lines are as fol-
lows:
On antimony, barley, boracic acid, borax,
glue, manganese and chrome ore, dried
peas, quicksilver in TASKS, rice, mustard
seed, tallow and wheat, from California
terminal points on the Southern Pacific
CompanYs lines to New York or New
Orleans, in carloads of $4,000 pounds, so
cents per 100 pounds.
On beans from the same California
points TO the same Eastern points, so cents
per 100 pounds, and from Ventura and
neighboring towns to the same Eastern
points 624 cents per 100 pounds.
On wine, from shipping points in Cali
fornia to New York, New Orleans, Calves
ton and Houston, in carloads of $4,000
pounds, so cents per 100 pounds.
On canned goods from California can
neries to the four Eastern points last
named, in carloads of 10000 pounds, SO
cents per 100 pounds.
These rates have all been reduced from
the 75-cent rate, which was put into effect
after the signing OF the Panama Pacific
Mail contract. They make differential
OF but 81 a ton as between the Panama
and the all-rail route, and in view of the
fact that experience has shown that a So
differential was insufficient to bring busi-
ness to the Panama combination, this
latest move can only be interpreted as
dead set against the isthmus route.
The next step of the Panama people will
doubtless be to ask the Pacific Mail Com
pany to sgree upon 30-cent rate which
would make a 81 differential. 1t has been
admitted, however, by the representatives
of both the Pacific Mail and the Panama
companies that such rate is not one that
permits of profit.
Just what Huntington expects to accom-
plish. by thus using his railroad interests