The San Francisco call., 1896-04-24
May Mean the Disruption Again
of the Transcontinental
Traffic Association.
THE NEWS A GREAT SURPRISE.
Conditions That May Have Blocked
the ?. an to S,ifie Railroad
Competition.

Action on the proposed new rates has
been indefinitely postponed.
This was the substance of message re-
ceived yesterday from Chicago by General
Freight Agent Charles f. Smurr of the
Southern Pacific Company and the local
freight agents of the other transconti-
mental railroads. 1t was sent in each case
by Chairman Countiss of the recently re-
organized Transcontinental Traffic Asso-
citation.
Just what the full import of this omin-
ous-sounding telegram is remains mat
ter of conjecture, but one thing that it de-
termines is that there are to be no new
rates p ut into effect on the 1st of June or
any other date in the near future; and the
wires were kept busy yesterday afternoon
conveying this information to the numer-
Gus freight agents in the inte rior.
1t is not yet two months since the reor-
ganiZation of the Transcont1nental Traffic
Association was announced from the East,
and with this news came the naturally
expected further information that an ad-
vance in through freight rates was to be
effected. There followed long session of
the transcontinental freight-rate commit
tee, an auxiliary OF the Transcontinental
then came the definite announcement that
new rates had been decided upon by the
various roads represented in that associa-
ton, and that all that was necessary to
make them operative was the concurrence
OF the roads east OF the Missouri River, the
trunk lines between Chicago and New
York and the New England roads, none of
which were members of the association.
The session of the transcontinental
frelght-rate committee held at Milwaukee
came TO an end about ten DAYS ago and
since that time it is believed that the
chairman of the association, whose head
quarters is at Chicago, had been endeav-
orlng 10 secure the required consent of
the other roads interested.
When the Milwaukee meeting came to a
close it was stated that the new rates
would probably go into effect by the 1st
OF May. Then, as days went by and there
was no new tariff schedule put into circu-
lation, it was given out that it would
probably not be until May 15 that the ad-
vanced rates would become operative; and
but few days ago the opinion was ex-
pressed by the local representatives OF the
railroads interested that it would be at
least month before the revised schedule
would apply.
1t was well known that all the proposed
changes had been decided upon, for the
full list of them has been in the hands of
X,
and when all the delays occurred and re-
Cured those outsiders who were familiar
with the workings of these great railroad
combinations began to suggest that there
was possibly a hitch in the deal some
where. When such contingency was
mentioned to the railroad people inter-
ested they had only looks OF pitying con-
tempt for the daring doubter. In conse-
quence the portentous news that came
over the wires yesterday was great sur
prise to verybody concerned in this City.
In anticipation OF the higher rates that
have thus been threatening the mercantile
com munlty for the past six weeks or more
orders from the East have been hurried to
shipment, and in some cases orders have
been placed considerably in advance of
the usual time, in order to take advantage
OF the prevailing low rates.
Had the new rates become operative
they would have entailed an increase of at
least 90 per cent on the importers of the
West, as the rates eastbound would have
undergone little or no change. In fact in
some cases slight reduction would have
resulted for California products, and the
the general result of the new tariffs would
have been to encourage local enterprise by
making low eastbound and high west
bound rates.
Among the measures to be taken by the
reorganlzed Transcontinental Association,
to make possible the advance of rates as
proposed, was the substituting of the car
rleTs engaged in the Transportation busi-
ness via the Isthmus of Panama, viz. the
Paclhc Mail Steamship Company and the
Panama Railroad Company. The PROPOSE
tion was to divide S72, 500 each month be-
tween these two companies in the proper
tion Of 55 per cent to the latter and As per
cent to the former. In this manner it was
expected to eliminate from the situation
the powerful competition of these compa-
MES, but more particularly that of the
Panama road, which had always posed as
the friend Of the people as against the
Southern Pacific Company and its allies.
The prompt manner in which the
Panama road fell into the plans of the
combination after its strong public protes-
tatlons of intending TO always remain an
independent factor in transcontinentaI
business created surprise and disgust
among the local shippers who had, when
ever they could consistently, favored the
Panama line. 1t is now likely that the
Panama line will be again in the field as
genuine competitor Of the rail lines; but
from the expressions heard among the
local merchants it will hardly receive that
consideration which IL did before it
showed SO eager disposition to join its
former rivals in their plans TO increase the
cost Of goods to the consumers of the Pa
clfic Coast by increasing the cost of trans
portation.
The greatest significance of this indefinite
postponement of action on the proposed
rates is that it may mean the complete
disruption again of the Transcontinental
Irafflc Association, as the principle, if not
the sole, object OF that body is the main
tenance of rates at figures that will assure
good profit to the carriers interested in
transcontinental business.
When 1t was announced that the ex-
ecutlve committee of the Transcontinental
Association was in session at Chicago last
wednesday 1t was considered only matter
OF hours when the date for the new rates
being made effective would be fixed. The
day passed, however, without bringing
any news, and it was then hoped that the
matter would be decided early yesterday.
But the hours went by. and when hope
was nearly again abandoned by the anx-
Ious railroad men of receiving definite in
formation, the news was flashed to them
that all the labors of the past six weeks
had probably been for nanght, and that
the old rates would be left unchanged for
some time TO come, at least.
Exactly what caused the indefinite post
ponement no one here seemed to be in
position to state; or rather thsre was an