Los Angeles herald., 1909-06-16
EAST AND WEST
TO FIGHT RATE.
ATLANTIC AND PACIFIC TO
JOIN HANDS
SPOKANE TARIFF WILL HINDER
COAST PROSPERITY
Jobbers Believe Purpose for Which
Panama Canal Is Constructed VIII
Be Defeated by Proposed
Schedule
8@ahI,tN

Shipping interests on both Pacific and
Atlantic coasts are taking alarm at the
proposed change of rates embodied in
the famous Spokane case, and Pacific
coast cities will have the cooperation
of jobbing and trade extension associa-
lions of the Atlantic seaboard in fight
ing the proposition. Eastern organiza
tons have already taken the matter up
and will be prepared to offer protests
to the Interstate commerce commission
at what they consider a serious blow
aimed at all coast terminals.
1.-THE very purpose and utility of the
Panama canal would be defeated" de-
clared a speaker before the June meet
Ing of the Trades league of Philadel-
phia, and this sinister effect is (ascribed
to the revolutionary change in rates
suggested by the railroads by many
other traffic experts. 1t is echoed in a
statement made by William r. Wheel
err, who represented the Associated job
fbers Of Los Angeles at the Spokane rate
hearing at washington. Mr. Wheeler
says the scheme, if adopted, would be
destructive to the prosperity of every
Pacific coast seaport and contiguous
territory"
ITO the present" says Mr.. Wheeler
in warning the mercantile and manu-
featuring interests of California to re-
sist the building of a barrier between
them and legitimate territory, tariffs
from the east to interior points have
been constructed by adding to the ter
minal commodity rate the local or dis
tributing rate applying from the near
est terminal to the interior point, thus
enabling the distributor at the terminal
point to compete on even terms with
the eastern, or, more properly speaking,
middle west jobber. owing to the high
local rates prevailing on the Pacific
coast, even under this arrangement 1t
was impossible except in rare instances
for the Pacific coast distributor to get
beyond the states of Idaho and Nevada.
Would Throttle Business Man
mot. satisfied with thus limiting his
zone Of distribution, or rather the zone
where the Pacific coast distributor has
a fighting chance, the railways propose
to nut him out of business beyond the
limits of his own dooryard- by reducing
the terminal commodity rates 20 per
cent for the sole purpose of construct
ing the Spokane tariff, and, necessarily,
tariffs to other interior points
1.-THE railways propose to apply the
New York rate on business originating
in Chicago, where the cost of produc-
ton is the same, thus picking Chicago
up bodily and placing her on the Allan
tic seaboard, inasmuch as she is given
the benefit of New York'S advantageous
geographical location
"This principle once adopted as such,
would be destructive to the prosperity
of every Pacific coast seaport and con-
tiguous territory, inasmuch as 1t de-
stroys the advantages inherent to such
seaboard location when applied to east
bound shipments covering all Pacific
coast products and manufactures. The
railroads propose to still further assist
the Chicago iobber by refunding to him
the cost of bringing into his warehouse
such articles of exclusively Atlantic
seaboard origin as are later reshipped
to Spokane"
The Associated Jobbers of Los Ange-
les and the Pacific Coast Jobbers' as
ISOLATION of san Francisco will join
with similarly affected organizations in
vigorously fighting the revolutionary
change proposed.