The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-06-14
Such a Course Would Have Seri.
ously Affected Huntington's
Pet Measure.
INSTRUCTIVE TRAFFIC HISTORY
The Fine Italian Hand of the Auto.
crat of the Railroad Again
in Evidence.

bill is temporarily at least at rest. And so
long as this measure is undisturbed, so
long will there be no advance in transcon-
tinental freight rates.
For this condition of affairs Coils ?.
Huntington, president of the Southern Pa
ciic Company, is responsible, according to
the views expressed by one of the most as
tute railroad men of this City.
Huntington's main and most weighty
argument in advocacy of his funding
scheme for the Central Pacific Railroads
debt to the United States has been the I'M
profitable character of the property in
volved. With the Central Pacific paying
dividends there would be no excuse for at
tempting to repudiate the obligations of
that corporation.
One OF the well-known methods adopted
by Huntington for curtailing the revenues
of his first but not best beloved enterprise
was the construction and operation of the
Southern Pacific Railroad. But, as the
gamin would phrase it, the public "got
onto" his game. Then by means of his
ever efficacious stalkiDg-horse the Pacific
Mail Steamship Company, rate war with
the Panama Railroad Company was pre-
cipitated, though Mr.. Huntington at all
times sought to throw the responsibilities
for the hostilities that followed for two
years on other fellow.
This conflict between the Panama-route
carriers forced down rates, of course, on
all transcontinental railroads, the Central
Pacific included Then Huntington came
magnanimously to the front and under
took to fight single-handed the battles of
the transcontinental railroads against the
Panama route rate-disturbers with his
powerful pet. the Southern Pacific Rail-
road This was to be accomplished by
quoting lower rates over the Sunset route
by 33% per cent than what were quoted
over the other lines.
By this adroi: manipulation he not only
succeeded in diverting business from his
Central Pacific line but from the other
transcontinental roads as well, and at the
same time swelled the traffic and the reve-
nue. of his ever carefully nursed Sunset
route.
Last December Huntington, as president
of the Pacific Mail Steamship Company,
signed a treaty of peace jointly with Mr..
Simmons, president OF the Panama Rail
road Company.
The terms of this document were the
same as had been offered by the Panama
people for nearly two years, but Mr.. Hun
tington, while persistently decla ring that
the rate war via Panama was due TO the
to sign it.
During this time he apparently could
not see how rates could be kept from going
up and the Central Pacific thereby con-
verted into a paying proposition If he
signed the agreement.
But during his absence in this City last
winter the board of directors of the Pacific
Mail Steamship Company at New York
were induced, bv a clever representation
Of Z ha IN do To hU
Cromwell on behalf of the Panama Rail-
road Company, to pass resolution author
iZing President huntington to sign the
agreement.
When Coils returned to New York there
was consequently nothing left for him to
do but attack his sign manual or Tepudi-
ate his board of directors, and thereby
virtually acknowledge that he was in favor
of war-war with or without cause.
at this time he had his funding project
under close consideration, and he fully re-
allied that a settlement of the troubles be-
tween the isthmus route lines meant an
advance of rates all along the line from
the isthmus on the south to the Canadian
Pacific on the north-and danger to his
funding scheme.
1t then became problem with the auto
crat of the railroad world of how to keep
rates down without appearing to desire it
and without taking an active part to &C.
com plish this end.
As anticipated by the railroad and COM
mercial world, it was not long after the
signing of the Panama-Pacitic Mail agree
ment before meeting OF all the trans
continental lines was called for the pur-
pose of recognizing the TranscontinentaI
Traffic Association. Organization was
duly effected at New York and imme-
diately following that event meeting
was called of the general freight agents of
the various lines interested for the pur-
pose OF revising and advancing transcon-
tinental rates.
Everything went along swimmingly.
New schedules were arranged, approved
and printed and the date was even approx
imately fixed when these new rates were
to go into operation. Then came an un-
expected announcement that the date for
putting in these new schedules had been
advanced, but before this latter date ar
rived came the startling news that action
on the proposed new rates had been in
definitely postponed.
There was a general dispersion of the
railroad representatives to their respective
homes, but despite the most strenuous
efforts made by the newspaper interview
ers the cause of the "indefnite postpone
ment" rem aimed secret with the railroad
people. and mystery TO the mercantile
world.
nothing that purported to be authentic
was made public. Recently, however, it
has been learned that the immediate cause
of the advanced rates being Knocked OUT
was the reluctance Of the representatives
of the roads in the hands of receivers to
enter into an alliance which eontem plated
the payment OF subsidy to the companies
operating a competing route.
And here is where the fine Italian hand
of Coils P. Huntington is reputed to have
cen at work. So long as he felt that his
funding bill had a chance to pass Con-
gress he was not averse to matters shap-
ing themselves so as to result in rates
being advanced. But just about the time
that these rates were to have been pro-
mulgated and become effective he was
made aware that the funding bill stood
poor chance of being adopted.
Sim ultaneously mysterious whisperings
began among the various freight repre-
sentatives of the risk that was being run
By the representatives of roads in re-
ceivers' hands who made themselves
parties to subsidy compact. The leaven
apparently operated just as it was de-
signed to do by Mr.. Huntington, who is
given the credit for having surreptitiously
cast it among his colleagues,