Arizona republican., 1909-05-15
there is not a severe competition by

there is not a severe competition by
 the water routes from the seaboard.
 ''The Pacific coast cities have been
 able. by reason of water competition.
 to do a big jobbing business far into
 the interior, and the new adjustment,
 while it does not deprive them altogeth-
 CT of the benefits they have derived
 from water competition, will greatly
 restrict their jobbing territory"
 The meaning of the above, in a few
 words if the report be reliable. is that
 the rates from the east to Phoenix, for
 illustration, will be as they are at present, with a considerable modifica- tion of the rate from the coast back to Phoenix which is now added to the
 rate from the east to the coast, to
 make the Phoenix rate. It is this rate that the inland coast cities have been rebelling against for years, from Spo- kane to Tucson, and while the injus- tice of it. from one viewpoint. has been admitted for various other reasons the railroads have been able to make a strong efense of the practice. chiefly in support of the coast jobbing centers which they have buiA up.
 It is construed by many observing people. that, while the move above an nounced may not be immediately made, the railroads are directing their ener- gies to that end as rapidly as possible. and not for any philanthropic reason, but merely as a matter of business. They foresee that on the completion of the Panama canal, their water com petition will be greatly increased and on many commodities the railroads will be unable to compete. That would mean a sudden and a heavy decline in their business with the coast jobbers. who, naturally, will patronize the steamships. if the rates are better. The railroads. therefore, desire to foster and develop as much as possible in the interim between now and the compile tion of the canal, the jobbing business in the interior trade centers like Tue son, Phoenix. Prescott, Reno, Salt Lake. Denver. Spokane. etc This can only be done by making rates that will put them on a parity with coast jobbers
 The coast jobbers naturally will de- plore this move as much as the inland centers will appreciate it, and even now are uniting all their strength in trying to defeat the Spokane cases. They desire to postpone any action of this kind just as long as they can. if pos sible. until the completion of the canal, when they will again have a rate ad- But the railroads having protected their coast trade all these years. now find a personal interest in a policy that will make less disastrous to them the blow that must follow the of the canal. The railroads do not propose to go out of business. and would Ike to favor their old friends, the coast jobbers, but they must protect themselves, and with this view of the case, it would appear that for once the railroad interests and the inland commercial interests were grad ually becoming identical
 The local railway commissioners to whom this matter was referred yes ter1ay, while not wishing to be quoted, admitted that there was much of req son in the story of the Chicago corre- spondence. They have no knowledge of what it is based upon other than the statements themselves, but that the of the canal will have some thing of a revolutionary effect on the making of the roads is quite evil lent from the conditions.