Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-08-06

were filed with the commission a Sc first
class rate from New York to San Fran
cisco, a lower rate obtaining from Pitts
burg, a still lower rate from Cincinnati,
and so by steps to the Missouri river.
These graded rates remained in effect until
1889 when We find the first evidence of
the institution Of great eastern blanket
Of class rates. This WAS at first not form
ally recognized in the tariffs, but was eff
fected by the eastern carriers through a
system Of rebates from the published rates.
Things appear TO have gone peacefully
for the next few years. The only serious
competition which the railroads met by
water was that Of the Southern Pacific
Sunset line from New York which apparent
ly applied from the New York piers what
ever the au-rail rates were from Chicago.
OF course during this period, OF any other
period, until recently it is impossible to
say just what the rates actually paid were
We are dealing, however. with the paper
rates
A Merchants Line.
Live ocean competition being out OF the
way, and the railroads having come TO an
understanding as between each other mat
tiers went smoothly until the San Francisco
merchants, in 1892, being reused TO activity
by recent Increase in the transcontinental
rates. instituted a boat line OF their own
/ This brought on another rate war in which
the merchants lost heavily and rates were
reduced by the rail lines 20 absurdiy low
figures. The lines east of Chicago and
those west fell out over the division Of
the joint through rates, and for a tim,
there were no joint through rates extend.
ing from points farther east than Chicago
and blanket rates were made by the west
ern carriers from Chicago Mississippi
river. and Missouri river points After IN,
railroad lines had killed off the san Fran.
cisco merchants steamship line, losing
thereby several million dollars. they came
10 an agreement with their eastern connec
tons as 10 a new basis OF divisions and 4
new scheme OF rate making.
Thus we come to the year 1886, al which
time the blanket system at present obtain
ing was first authorftAtively announced
This blanket extended from the Missouri
river 20 the Atlantic seaboard. We heal
very little Of water competition for IN,
next three or four years. In 1900 however
the American Hawaiian Steamship com
pany established its first steamer lin,
1 through the Straits of Magellan. In $50
also, we have already seen. control OF tn,
Pacific Mall was purchased by the South
ern Pacific company. Neither one Of thes
facts seems to have disturbed transoon
tinental rail rates.
Mexico in the Game.
In 1906 another step forward was mad
IN the matter of water competition by tn
opening of the Tehuantepee route. tn
American-H Hawaiian company. under a
arrangement made with the Mexican gov
eminent and with the sugar planters &
the Hawaiian Islands, instituted the mos
satisfactory service which up 10 that tim
had obtained between the Atlantic an
Pacific seabosrds by water Eastboun
tonnage was furnished by Hawaiian sugat
and west-bound tonnage was gathered 8
, the Atlantic seaboard.
In 1907 the volume OF west-bound bushes
, carried 10 Pacific coast terminals via IN
, route was Ss6 tons: in 1903 III e0s tom
, in 1909. $4,000 tonE; IN 1910, 80. 500 tons n
, total volume OF transconunental tonnag
! was. two years ago. estimated by the cal
riers al 100000 tons per annum. Viii
: the total warsr-borne traffic is about
: per cent CT this figure. InAsmuch as n
: traffic OF the country increases al the rai
4 OF nearly 10 per cent per year. II woul
, appear that in nearly four years oces
competition Of the transcontinental "a
4 lines have been enabled 10 secure a tot