The San Francisco call., 1897-10-15
Competition Decided Upon to
Recover the Lost
Trade.
SOUTHERN LINE ALSO CONTEMPLATED
What a Promoter Of the Scheme
Says About the Important
Matter.

The premature publication in the even
ing papers of an organization OF local
merchants to establish lines OF steamers
for operation on the Alaska and southern
runs, according to Maurice Block, a
prominent me m Der of the committee hav-
ing the enterprise in charge, may seri-
ously cripple if not entirely kill the move
N ent
The committee consists Of a. c. Rulof-
son, with Baker & Hamilton; William r..
Wheeler, with Holbrook, Merrill & Stet-
son; A. K Manson, of l. A. Folger &
Co.. Harvey D. LoveIand. secretary for
Wellman, Peck & Co.. Frank l.. Brown,
of Washburn & Moen; Henry Michaels,
of Langley & Michaels. and Maurice
Block of the Anglo American Crockery
Company.
This committee has secured from
twenty large houses over $1,000 apiece.
Prior to the Alaska gold excitement mer-
chandise was carried from this city &c
Portland, Astoria and Puget Sound ports
at 81 per ton, and merchants cheerfully
prepaid freight, thus placing them on an
equal footing with the jobbers of those
cltles.
The Alaska gold fever caused many OF
taken off and the Oregon Railway and
Navigation Company has a monopoly of
the coast trade, and has sta blished rates
of from 81 to 50 per ton. This has been
prohl bitlve. for no merchant is able 10 de-
liver goods in the cities named.
The merchants contemplate putting a
steamer on the Portland run. making not
! less than three trips mouth, carrying
freight at low =ale, thus enabling the
San Francisco merchants to successfully
compete with the northwes ern cities anu
Chicago for a trade which belongs here.
If the movement is successful the mer-
chants contem plate putting on a line of
steamers 10 run down the coast
Alfred c. Rutofson, in an interview last
night, said:
San Francisco for many years was the ac-
knowledged metropolis OF the Pacific Coast,
enjoying the distinction of being the only
jobblng city west OF Chicago and St Louis
ana was the main distributing point Tor ali
merchandise consumed west OF the Rocky
Mountains.
The building up OF Denver, Salt Lake, Los
Angeles, Portland, seattle ana Tacoma natu-
rally, under the most favorable circumstances,
would nave drawn more or less OF the trade OF
this city. With the advent OF the railroad, as
II made It's mRrcn westward, we gradually
lost the trade of Utah. Montana and Idaho.
Before the completion of the transcon tinenal
railroads int Los Angeles, Portland Seattle
and Tacoma we still neld our prestige for the
trade OF Southern California, Oregon and
Washington, but the completion OF the trans
con tlnental railrOad 10 Los Angeles and San
Diego made those two cities jobbing points,
but OF minor importance.
Then the Northern Pacific and Great North
ern were finished 10 The seaports OF Oregon
and Washington a those cities enjoying
practically the same terminal freight rates
that san Fran cisco had caused what were for
merry retail houses to grow into jobbing firms
OF considerable i'm poriance, but notwiths tan d.
ing this, profits being liberal, the san Fran
cisco merchants, by being satisfied with a
smaller pr fit, were still enab.ed to hold a
lions Il are OF the Jobbing business of the ter
ritory mentioned
However, the competition increased mar
gins OF profit were lowered ard the matter of
frrights began 10 cut very important factor,
and gradually the territory that this city cou i'd
supply u advantage was contracted and grew
less and IeSS with each succeeding year, until
1t became almost an scknowle dyed fact that
owing 10 the nigh local rates al freight and
the discrimination OF railroads not particu-
larry interested in the commerce OF San Fran
cisco, had caused us the loss OF the trsde of
Southern CallforaI which as divided among
LIS Angeles, San Diego, Chicago and ST. Louis,
whi.e The San Francisco merchant had to
stand with his hands folded and see the trade
that was NATURALLY tributary to this CITY being
diverted into now channels.
In looking sbJut Tor new business some OF
the larger DbbIng houses of this city deter
mined to make an energetic fort 10 increase
their trade relations with Oregon, Was hing
ton and Idaho and sent their best travelling
statesmen INTO those States.
Fortunately there were die quite number
of small steamers, which finding all increased
amount OF freight going TO that territory,
found il profitable TO run indepen dentIy 10
Portland ana the porls on Puget sound, TAX
ing freight at n rate very mucn lower than
tnat charged by the old-esta blishe ed line.
These steamers have been taken off owing 10
the gold excl ement and we desire to reduce
the present prohi btive freight rates.