The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1909-03-12
REVOLUTION
IN RATES
RAILROAD MEN BECOMlN1
ALARMED BECAUSE Or
SITUATION.
Recent Interstate Commerce Iom-
mission Decisions the Cause OF
Commotion Panama Rallfodu
and Steamship Connections Cut
Considerable Figure.

Portland. Or, March ga chicago
special to the Sunday Oregonlan says
Railroad men are becoming alarmed
over the tangle in the transcontino'al
rate situation. Recent developments
seem to indicate that the mters'a'o
commerce commission has come To VIC
conclusion that the entire scheme VI
transcontinental freight rates must DC
changed by the railroads. just no"
this is to be brought about by the conl-
mission is not known, but the decisions
in the Missouri river and Spokane rate
cases would seem to indicate thai IL -
to be contrary to existing principles
and will force the desired adJustment
in the transcOntinental rate fabric.
Water Competition Causes Row
The tangle is accumulated by quarrels
between the rail carriers themselves
and between the rail-and-water car
riers. In the West the Hartman steam
ship interests have locked horns III
desperate fight over coast to coast rates
by way of Panama shores in steamers.
This water competition has always
been assigned as the reason for the pc
culiar adjustment of transcontnentaI
rates. Owing to the water routes the
railroads in the East have insisted that
they are forced to meke extremely low
transcontinental rates. AS a conse-
quence the rates from the Eastern sea-
board to the Western coast are just the
same as they are from Chicago and the
Missouri river to the Pacific coast. In
other words, the New York manufac-
turer or merchant can ship goods to the
Pacific coast as cheaply as can the
merchant or manufacturer from Chica-
go, from Kansas City or St. Louis.
Middle West Demands Reduction
Furthermore, the Western lines have
been forced to accept an extremely low
division Of the transcontinental rates.
If water competition has forced this
condition, then Mr.. Hartman is re-
sponsible, in a way. Mr.. Hartman
owns the Morgan steamship line, which
connects with his rail lines at Gulf
ports, making water and rail route
which is more inexpensive than the all
rail route, and which gives long haul
from the Gulf to the Pacific coast.
Now that Mr.. Spreckels and Mr..
Hartman are fighting battle, and
water competition has in consequence
become more keen, the Western roads
are wondering whether the transconti-
mental all rail rates will have to be
further cut. Some of them are be-
coming weary of being held up and are
said to be listening to the importuni-
ties of the merchants of Chicago and
the Middle West to be given the bene-
fits Of their position geographically as
against the seaboard, 1000 miles fur
Their away from Pacific coast points.
Eastern Roads Loose Traffic
The railroads are all the more will
ing to listen because the fight between
the steamship interests is robbing them
of a great deal of business Of late,
it is said, an exceedingly large proper
ton of the tonnage originating east of
SIlASdSO O11u uOoUluOu lO1 CtCluC COC1oU
points has not been going all rail. The
exceedingly low water rates are max
ing it possible for the shippers as far
from the seaboard as Pittsburg, and
even farther west, to backhaul to the
seaboard and then ship by water to the
Pacific coast by way of Panama. This
fact emphasizes the conditions which
will arise upon the completion of the
Panama canal, obviating the necessity
OF transshipping twice, from boat to
rail and from rail to boat.
Some of the railroads in the West
are beginning to wonder if they would
not make more money if they were to
place the Middle West on something
like a parity with the seaboard by
charging less rate from the Middle
West than is charged from the sea-
board