The San Francisco call., 1909-05-23
William R. Wheeler.

/
through rate, New York to Spokane, of |
$l5O, thus putting the Seattle jobber
at disadvantage of % cents per 100
pounds In competition with the New
York Jobber and effectually putting the
former out of this business
Having thus given New York an
advantage over Seattle with regard tdl
Spokane business, the railroads, in a
self-serving spirit, as frankly admitted
by them. propose to apply the New
York rate on business originating in
Chicago, where cost of production is |
the same, thus, with respect to this |
business, picking Chicago up bodily and
placing her upon the Atlantic seaboard. !
inasmuch as she is given the benefit
of New York's advantageous geograph-
ical location.
This, however, is a situation which
has for some time prevailed with re-
gard to practically all business orig
mating between the Atlantic seaboadr
and the Missouri river and is, perhaps, |
the best possible compromise between
graded rates (i. e. lower rates from
Chicago than are established from New
York by reason of sea competition at
that port) and trunk line arbitraries
Ci. e. higher rates from Chicago than
from New York by the addition of thal
rate in force from Chicago to New
York to the sea competitive rate pre-
vailing al that seaport) and has, up to
this time. been acceptable to the Pacific
coast distributors a compromise
only AS a matter of fact, the prin-
eiple, once adopted as such would be
destructive to the prosperity of every
Pacific coast seaport and contiguous
territory, inasmuch as it destroys the
advantages inherent to such seaboard
location when applied TO eastbound
shipments covering all Pacific coast
products and manufactures.
Injuries Western JObbers
Not content with applying this
equalizatio of rates to all business
originating in Chicago, the railroads
propose TO arrange their tariff so that
articles produced exclusively on the
Atlantic seaboard shall be handled by
the Chicago jobber rather than by the
Seattle jobber. Having established the
rates from the Atlantic seaboard TO
Spokane In the manner described in
their third proposition, they propose to
still further assist the Chicago jobber
by refunding to him the cost of bring
ing into his warehouse such articles
of exclusively Atlantic seaboard origin
as are later reshipped to Spokane.
This is accomplished by deducting
from the rate in. force between New
York and Spokane the rates applying to
such articles between New York and
Chicago. thus establishing the rate
from Chicago TO Spokane. For ex-
ample, if the rate on such an article
from New York to Spokane is $3.50.
and the rate on the same article
from New York to Chicago is % cents,
this establishes a rate of $1.25 from
Chicago to Spokane, as against s1.75
if purchased through a Seattle jobber.
Endangers Manufacturers
The fourth proposition is plainly
aimed at Pacific coast manufacturing
interests. Including those of Spokane.
If a Milwaukee brewer finds that his
enterprising competitor located in
Spokane is gaining headway, 1T would
seem that it is only necessary for the
former to apply to the railroads serv-
ing Spokane in order to obtain a rate
that will let him into that market on
a basis that will eventually destroy the
local industry. This proposition fur
nishes our Pacific coast manufacturers,
wherever located. food for thought.
THE fifth proposition covers rates
from St Paul the fair haired child of
the northern roads of whose interests
they are ever watchful regardless of
how the manifestation of such watch
fulness may affect their other Chill
dren, Seattle and Tacoma, to say moth
ing of their stepchild, Portland They
are determined to favor st. Paul even
though such favoritism is to the detri-
ment of her big brother, Chicago
Whether they have postage stamped
or graded the New York sea competi-
tive rate to Chicago. they propose IN
either event to grade at St. Paul any
rate established from Chicago.
The inconsistency of moving sea-
board competitive rates back from the
seaboard is plain. How doubly incon-
sistent is it, then, to grade such sea
competitive rates at Chicago and still
further grade them at st. Paul, in both
instances to the decided disadvantage
of our Pacific coast seaboard terminal
cities, ne1ltralizing. as it does. the ad-
vantages inherent to their geographical
locations and turning their dooryards
into dumping grounds for middle west
manufacturers and jobbers
The seriousness of this situation
from the standpoint of the San Fran
cisco distributor is not confined to the
fact that, by this proposed rate read
juStment he will be effectualy shut
out from the Spokane territory in
common with the distributors of Port
land Seattle and Tacoma-the entire
distribution into that territory being
necessarily confined practically to the
nllddle west cities even 10 the aHHiiilia-
tion of the Spokane jobber himself
This, in the last analysis, is the least
serious prospect to beecontemplated.
The real seriousness and what
should arouse the live and active in
terest of the San Francisco distributor
and manufactures lies in the prob
ability. amounting almost to GER
tainty. that if the proposed readjust-
nlent to Spokane becomes effective,
like establishments will be made to
such points as Reno and Las Vegas,
Ney.. Albuquerque \. NJ, and Tucson,
Ariz, thus neutralizing the advan-
tages inherent to San F'ranciseo's geo
graphical location and limiting her
distribution to the territory west of
the foothills of the Sierra Nevadas."
Not only will the coast cities pro-
test against the contemplated action
Of the railroads. but IL necessary they
may institute suit to show that the
rates as proposed from the coast to