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

toned for the destruction of the clipper
ships-were lower at the ports than at the
interior points. In the language of Mr..
Luce, Of the Southern Pacific:
Commodity rates were scaled up from the
seaboard IN the first instance, but the class
There was always higher class rate from
New York than from Chicago, but often
lower commodity rate from New York than
from Chicago.
Southern Pacific's Coming.
In 1883 a new competitor entered the
field-the Sunset-Gulf route. a water line
from New York to New Orleans owned by
and connecting with the Southern Pacific
line from New Orleans to San Francisco.
This new line was looked to by the carriers
generally to take care" of water competi-
ton, in the significant language of South
ern Pacific official. 1t entered upon the
work with such heartiness that before long
the Pacific Mail alone kept on its perfume
tory way between Panama and the Pacific
coast terminals. The clipper ship as a
competitor had been destroyed, Pacific
Mail had been subsidized, and the trans
continental lines were in control OF ocean
as well as land transportation.
II is the estimate Of the Southern Pacific
that Of all the traffic moving from the
! Atlantic seaboard TO California from 1856
up to 1891 the sunse-Gulf route carried
4 from - 10 80 per cent. and Of the balance
practically all went by@rRil. The aggressive
policy Of the Southern Pacific company IN
instituting a water line of its own between
the Gulf and the Atlantic drove it's water
competitors out of the field and took from
the rail lines all but the most Insignificant
proportion of transcontinental traffic
Those were the fine free days when "all
sorts OF rates could be had and all sorts
Of tariffs could be found"
santa Re Enters the Field.
BY the year 1885 competition by sea was
not more than nominal. In that year, how
ever. the Santa Fe. being completed e
Los Angeles, came into the field claiming
it's share of tranReontinental business
destined 70 its new terminal. California
Up to It's coming. and for some years prior
commodity rates had been graded up from
New York; that is TO say, the rates from
Pittsburg territory 10 California, and from
Chicago 10 California, were higher thar
from New York The theory Of the raj
carriers was that they should meet the
competition at the point where the com.
petition actually sxisted-at the seaport
But the Santa Re had its eastern terminus
IN Chicago. II found the Sunset-Gulf rout,
carrying practically all OF the Atlantic
seRboard business at rates below the all
rail rates-st any rate that it chose 20 fix
In its view IL was all well enough for tn
Southern Pacific 10 send out from tn,
gulf its own boats that would drive al
rivals from the ocean. but because il hal
done this service 20 the rail carriers It wa
not 10 follow that all the traffic was q
remain in the possession Of the Souther,
Pacific. Whatever rates, therefore, tn
Sunset Gulf route chose 20 make at New
York the Union Pacific and santa Re de
] clared they would make from Chicago
, This determination OF railroad policy wa
) gwen the name Of market competition.
= II was said that the great middle west We
building up and should have its opportunit
10 compete with the Atlantic seaboard 70
: the developing trade Of California In
{ Santa Fs did not reach New York; IN
q Southern Pacific did; the Santa Re Woul
give TO Chicago and to 81. Louis and
q Kansas City the same opportunity 10 fee
5 and oiothe the people OF California that n
!: Southern Pacific gave TO the people Of Ne
= York and Boston Then followed an int
r esting rate war. which eliminated In Is
n In the installation OF q new set OF grade
:, rates. this time scaling lower as they r
; oeded from the Atlantic seaboard.
J. We find then with the first tariffs IN