The San Francisco call., 1896-04-17
What Is Lost to California by
the Unequal Competi.
tion.
SHIPMENT OF FRUIT INSTANCE
San Francisco Railroad Men Are
Watching the Fight in Con.
greSs on Bonding.

The movement started in Congress to
withdraw the bonding privilege now en-
joyed by the Canadian Pacific on all
freight transported between points in the
United States by the Canadian Railway
has aroused considerable interest among
railroad men in San Francisco. Indeed it
has been the most important subject of
conversation since Senator Elkins made
patriotic speech in the Senate about ten
days ago.
The Canadian Pacific Railway is so sit
uated that it holds the whip hand on
transcontinental freight business and can
carry freight almost for nothing in COM
petition with the United States lines.
This is obvious in view of the guarantees
and subsidies from the Dominion Govern
ment. The Canadian Pacific is an i'm
perial highway, a military road, so lib
orally provided for that the American
roads cannot compete with it should rate
war be started. At the present time
though peaceful condition apparently
exists between the Canadian road and the
United States transcontinental routes, yet
by the system by courtesy known as "dif-
feIentials" the former line dictates rates
to the latter, and the result is that the
United States lines have to accede differ
entail OF about 10 per cent in favor of their
northern opponent.
The direct effect of this upon the pros
perity of California is held to be very seri-
Gus. At least an enforced and conse-
quently false condition confronts the
State, } more particularly the gateways
of Pacific commerce. San Francisco being
the main gateway and the center of Pa
cific Coast commerce is bad loser in the
game played by the Canadians. Probably
no more forcible illustra ton of the un.
equal struggle can be given than this one
cited yesterday by local railroad man:
The Pacific Coast Steamship Company's
steamer WalIa WalIa sailed for Victoria
and the Puget Sound a few days ago. She
had on board over 100, 600 pounds of dried
fruit from San Jose consigned to st. Paul,
Mimi, via the Canadian Pacific Railway
This freight has to be transferred to the
Canadian Pacific Navigation Company's
steamer at Victoria for transportation to
Vancouver, the Pacific Coast terminus of
the Dominion railway. At Vancouver a
third handling is necessary to place the
fruit on the cars, and then the circuitous
route is resumed to carry the freight
through Canadian territory and subse-
quently into st. Paul. This one consign-
ment represents the carrying capacity OF
five railroad cars, and anybody who has
even slight knowledge of railroading can
appreciate what money and labor are
necessary to move five cars half way across
the country. All the income, with its con-
sequent exchange of wealth tn at should
accrue from this shipment, is lost to the
United States. And as for California a
large share of the wealth-producing ele-
ment of this particular merchandise is
lost; it was cut off, diverted to a foreign
nation when the freight went through the
Golden Gate.
The Canadian Pacific was able to carry
this freight and pay the expense of
handling it twice and 10 take it nearly
double the direct distance of st. Paul from
San Francisco at profit. And yet the
rate, under the ''differential' system. was
at least 10 per cent lower than the stand
ard transcontinental tariff as arranged bv
the freight association.
Local railway officials are 10th to discuss
the Canadian Pacific publicly, because
they do not wish to disturb Friendly re-
lations" now existing. One OF them, how
ever, explained the situation quite fully.
1.-THE moment freight for Eastern cities
is put into a steamer at the wharf here to
be sent by the Canadian Pacific it gives no
further wealth to the State" said he.
"Shipping goods by that route represents
an expenditure for carting to the dock and
slowing on the steamer
'Now, let US see what would be the effect
if the same freight went by the United
States roads. Mind you, am not sneak
ing for any one of these routes, for this
affects the Southern Pacific Central Pa
cifc, Great Northern and the Northern
Pacific out of San Francisco. Every mile
of road this freight would pass over in
California has to be kept in order at con-
siderable expense. Every mile contributes
toward the wealth of the State. Taxes
have to be paid. And then the more busi-
ness, of course, the larger will be the num-
Der OF men employed, all of which means
the circulation of money. This keeps
things going and is good for all classes of
people, but take the source of revenue
away, as in the case of the Canadian Paci-
fic encroachment. and the State must
suffer, aad the people also.
1.-THE Canadian Pacific shows that it's
route is circuitous and rather Objectionable
for transportation of American freights. if
passes through various climates and there
is delay in the roundabout route. Com
pared with the American transcontinental
routes this is plausible showing, and
when differential rate is proposed by the
Canadian line as just and fair the Trans
continental Association has to allow the
rate. In other words, the Canadian line
demands certain differential, and always