The San Francisco call., 1904-07-29

AID TO MANUFACTURERS
Local manufacturers say that they
see in the situation at last a chance to
widen their trade territory, taking in a
considerable slice of the country east
of California and extending several
hundred miles, and this will mean the
widening of their manufacturing opera
tions. Wholesalers and jobbers also see
a wider territory for their opera tions.
Cheap fuel oil in California is provi-
dentiaIlv supplemented as a Pacit1c
Coast advantage to manufacturers by
the unexpected speedy provision of a
substitute for an interoceanic canal, to
be effective in the near future Import
ers of tea and other Oriental products
see that with the destruction of the
monopoly in the carrying trade they
have a chance that has been denied
them under the old combination of sea
and inland rates.
Once before California has had COM
petition by sea in sight The North
American Navigation Company ran
ships in connection with a sea line put
on by the Panama Railway Company,
and put the Pacific Mail Steamship
Company out of business for time be-
tween San Francisco and New York
and way points. During the same pc
TlOQ the rail- IdtSS NSAC lOICeu TO meet
the sea rates. In this an example was
afforded of what can be permanently
effected in rail rates.
The Traffic Association of California
did splendid work at that time for this
State. 1t was composed of hundreds of
San Francisco business firms, who
stood together for the common good. 1t
efficiently aided in the construction of
the first railway to bring competition
California by the institution of the San
Joaquin Valley road. An object lesson
was afforded at the same time of the
willingness of the San Francisco busi-
ness houses to combine for common
business advantage, which is still of
value as a leverage. for the large
houses then at the front and most of
the active movers in both the North
American Navigation Company and the
Traffic Association are still actively en-
gagged in business.
The transportation men and the rep
resentatives of business houses held
another conference yesterday. All those
in attendance at the conferences have
been pledged to secrecy from the start
and there was great astonishment on
the part of all participants in the meet
ings when they read in The Call the
exclusive story of the deliberations, Of
Sucn vast Importance TO the coast, tndL
have been in progress. Several business
men were interviewed yesterday.
BENEFITS TO COMMERCE.
Isaac Upham, who was pre5id INT of
the old Traffic Association. said the in
structions OF President>1 -oosevelt to the
Panama Canal Board opens up compe-
tition and that is the value of il to the
commercial community OF the Pacific
Coast. To renew the contract between
the Panama Railway and the Pacific
Mail Steamship Company or to make
an exclusive contract with any other
steamship line would stop competition
and would keep freight rates excessive-'
ly high.
Mr. Upham alluded to the old-time
subsidy that was paid to the Pacific
Mail Steamship Company by the trans
continental railroads, amounting to
$4,000 a month, for the purpose of
preventing competition by sea While
the railroads shipped no freight in the
Pacific Mail steamships. space was re-
served for the roads, making it impos-
sible for others to send freights over
the Panama route Then the Panama
road and the Pacific Mail Steamship
Company had falling out. The Pan
anna Railway declined to renew its
contract with the Pacific Mail Steam
ship Company and entered into an
agreement with San Francisco busi-
ness men that resulted in the forma-
tion of the North American Navigation
Company, through the agency of the
Traffic Association. Ships We're put on
the Panama route by the San Fran
cisco merchants. This brought down
the rates on the Southern Pacific Com