The herald., 1898-04-02
Sentiment W Business

Sentiment VI Business
To the Editor of the Los Angeles Herald;
The public at large is always opposed to
monopolies and in favor Of any competing
proposition that will temporarily check the
greed Of great corporations.
This proposition is illustrated In the busi-
ness of the gas companies. water compa-
MES, street car companies, railroad and
other similar quasi-public corporations.
A ras company Is established In email
town. The town grows and 30 does the
company. At first a high rate Is charged
for gas because It seems to be necessary;
the consumption 10 Light and The cost Of
manufacturing and distribution 10 heavy.
Three dollars per thousand cubic feet Tor
gas seems about right, and the people pay
1t because they have to. and then 1t 10 10
nice to have gas.
After a while the tax becomes BURDEN
some and the people complain Of the great
gas monopoly The subject Is agitated to
such an extent that finally leading men OF
the town or some outside capitalists pro-
coed to put in another gas plant and only
charge $3.50 per thousand cubic feet for
gas.
Everybody "hurrahs'' for the new gas
company. Damn the old gas monopoly.
anyway; II always has been curse to tho
town, and now we are going to have -e-
lief" Everybody orders gas at $l5O per
thousand cubic feet. After little the old
company brings its price of gas down 10
y25 per thousand cubic feet. A change
comes over the people. That old'company's
a pretty good company after all. 1t fur
nished us gas when we could get 1t no.
where else. They charged pretty good
price for their gas. 1t is true. but then they
had to. Now that the town has grown and
tho consumption has increased they seem
to be willing to do about what is right.
So the people make another change OF
base, and they now order gas again from
the old company for SIPS per thousand Gu
bic feet. Sentiment would require that
they should patronize the new company
that brought down the price of gas. for.
were it not for the new company the peo-
ple would have to pay IS instead of 81. . per
thousand cubic feet.
Business seems to dictate that the people
should buy the gas where they could get
it the cheapest regardless Of all other con-
siderations. What is the result? Either
the new gas company sells out to the old
company. and the price of gas goes up again
to $3.50 or So per thousand cubic feet. or the
two companies agree to fix rate at which
both companies should sell gas. and then
each company do all the business It can.
This case is a supposiiional one. given 70
illustrate the proposition. but we deal with
facts-known to be Facts by the business
men of Los Angeles.
eoxx hA
company charged 4 cents a pound for
freight. including lighterage. from Los
Angeles to steamer via San Pedro. The
leading business men Of Los Angeles
thought this price exorbitant, and said so.
They finally agreed with Senator Jones and
others that il they would build line CT
railroad to Santa Monica and "A wharf at
that place they would guarantee them their
freight at cents per pound. The roadwas
built and freight started that way at a
lively rate, leaving the San Pedro route.
The Southern Pacific then said to the
aforesaid Los Angeles business men. ''if
you will send your freight over the San
Pedro route again we will give you a rate
of / cent per pound on FIVE years agree
ment." The agreement was made and the
freight again went via San Pedro. The
little road was gobbled up by the Southern
Pacific for less than one-half its cost, and
the wharf was dlsmantled.
The Los Angeles merchants were able to
get the one cent rate in lieu of the former
four cent rate by the building Of this little
| road. They could send given amount OF
freight for $1,000. instead of paying $1,000
Sentiment would dictate that the mer-
chants should continue to patronize the
road that gave them the reduction, but the
business men said: mo, we will send the
freight by the road that will carry it the
cheapest"
Fifteen years ago the Southern Pacific
was the great railroad monopoly Of the
Pacific coast. Little roads had been
started as opposition lines. but one by one
they had been gobbled up by the great
octopus" because the people thought more
of business than sentiment.
The California Pacific, short line from
Sacramento to Vallejo. was noted oppo
sition line about thirty years ago. l. N
Hoag, now postmaster at Redlands, and
]. N. Victor of San Bernardino know some
thing about that line. 1t made a gallant
fight for few years. but finally fell into
the hands of the Southern Pacific sys.
tenn.
The demise Of the Los Angeles and Pa.
cific railway. built a few years ago from
Los Angeles to Santa Monica, is another
glowing illustration Of sentiment VS.
business" as some of the enterprising bus
mess men of Los Angeles can testify.
A little later the Santa Fe system en-
tered Southern California. This was ne
Jerk water" affair. 1t was one of tbs
largest railroad systems in the world. i
could not be bought and It could not b
bullied. No sooner had 1t completed 1t.
| through construction to Los Angeles thar
| a war Of rates was inaugurated. Ticket.
between LOS Angeles and Chicago sold fol
| IS, and some were sold at so cents each
The roads did a rushing but not paying
! business After awhile the war ceaset
and rates were restored, not to their former
status, yet to fair rates. The Santa f.
company caused this reduction of rates an!
gave Southern California railroad facli
ties that it never would have had unde
the one railroad system. and by means o
this competition Southern California ha
grown in population and wealth ten time
faster than has that portion of the stat
north of the Tehachapi.
| Here again sentiment steps in and say
'Patronize the railroad that has done g
much for Southern California" The bust
ness man says mot much; patronize tn
line that is cheapest and that gives me tn
best service" AS a result both railroa'
systems have endeavored to give the bes
service, for they found 1t necessary imme
d;otoIy after the rate war to agree uDO