The San Francisco call., 1896-04-20
RATES AND FUNDING.

Those American citizens, in and out OF
Congress, who seem to think that the set
tlement of the railroad debt to the Gov.
eminent is simple business PROPOSE
tion," involving the sole question of ex.
tending the time for an embarrassed cred
itor to make settlement, might read with
interest and profit the result of the con-
convention of freight agents recently held
in Milwaukee. These gentlemen, after q
careful study of the question of overland
transportation rates, have framed sched-
ule advancing present west-bound rates
more than so per cent, with correspond
ing advance on east-bound rates for the
leading products of California. In taking
this action they have considered only the
delay necessary in putting the Few rates
into effect. One of the delays is that of
ten days n office to the Interstate Com
merce Commission.
The rate war of 1892 reduced west bound
charges to 20 per cent of the rates thereto
fore prevailing. This was caused by the
competition of the Panama Railway.
Upon this 40 per cent, according to the
published statement of the general freight
agent of the Southern Pacific Company,
an average raise to 65 per cent of the orig
inal rates has been made, which is raise
of over 63 per cent on existing rates. That
is to say, the railroads west OF the Missouri
River, acting in concert and enabled to
do SO by the arrangement which Mr..
Huntington has made for removing the
competition offered by the Panama Rail
way, can entirely upset and readjust the
commercial conditions of California and
the whole West, and in doing so exhibit a
power infinitely greater than that which
the Government of the United States is
able to exercise. What private, commun.
ity, State or regional interests may be
wrecked or advanced by this violent over
turning of an established order of things
upon which present conditions are based
are matters that have not received the
slightest attention from the com bined rail
roads making this advance.
1t might be argued that even though the
President should exercise his clear prerog.
ative and foreclose the Government mort
gage on the debtor roads, the possible pur-
chasers would be as likely as the present
owners to enter into just such a revolu-
tionary combination as has been thrust
upon US. But such an argument would
leave out of the account the fact that the
roads, under foreclosure sale, might pass
out of the hands of their present owners.
whose sole policy is to strengthen monop-
oily by com bination and to squeeze every
dollar in sight, without regard to an in
creased traffic and larger profits possible
under liberal policy, and might fall into
the hands of owners who realize that the
best results come from fostering develop
ment by offering encouraging rates.
Under the new arrangement the Central
Pacific is enabled to say to the opponents
of the funding bill in Congress that in ad-
dition to the money-earning power which
it enjoys as monopoly, it has secured tie
cooperation of all other transcontinental
lines, and that by raising its rates to a
figure which will prohibit the develop
ment OF the West it will be able to dis
charge its Government debt under the
terms of the funding bill. This will be
placing the interests of the aided roads i'm
measurably above those of the country.
Whether that is the desire of Congress is
something that the people at large would
be glad to know.