The $12.50 Gold Rush: How a Railroad Rate War Flooded Seattle with Hope and Skepticism
As Canadian Pacific slashes fares to half the price of American lines, local merchants debate whether the coming wave of homeseekers will build the city or break it.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
DOWN GO THE RATES!
War Inaugurated Between the Trans-continental Lines. Canadian Pacific Sells $12.50 Tickets From St. Paul to Seattle. Seattle Merchants Jubilant Over the Prospects and Expect Great Prosperity.
The gigantic rate war between the transcontinental railroads, which has been predicted for weeks past, has at last begun in earnest. The clash came last night, and today it promises to assume proportions never before realized. For several weeks past the Great Northern and Northern Pacific have been selling second-class tickets to the Pacific Northwest for $25 to homeseekers. Late last night the Canadian Pacific and Soo Line announced a west-bound second class rate from St. Paul to the coast of $12.50, just one-half of the rate charged by the American lines.
Dispatches received this morning indicate that the Great Northern will not only meet this cut, but will go below it, perhaps making a rate of $10. The Northern Pacific will next have to follow in the reduction. The War will then begin in earnest, for rumors say that the Canadian Pacific will temporarily reduce the rate to the nominal figure of 50 cents to the coast.
Where the slashing will end is a serious problem. The tide to the Pacific Northwest has set in, and the roads offering the lowest rates will get the travel. Several conventions are slated for the Pacific Coast, and there will be an exciting time in the railroad world for the next few months to come.
Local Opinions. The Star represents this afternoon the views of several prominent business men on the benefits to be derived from the railroad rate war. They recognize the fact that thousands of eastern people will find their way to the coast, and as all roads lead to Seattle, this will be the most beneficial. If the homeseekers go in other parts of the state, Seattle will soon remain their business center.
Following are the expressions of business men:
James S. McGraw: "The cut rates will bring many people and small manufacturers here. Just what we want."
Isaac Cooper: "If the homeseekers will come and show a desire to engage in legitimate business, it will be a great benefit. In a moment of this kind we must consider the fact that some undesirable persons will undoubtedly come."
John Schram: "The rate war is a good thing for the state, and a great many who come from the east will stay, and the result will be most favorable. As Seattle is the western terminus, she will be the city that will make the best impression, and the settlers will start from her doors, keeping her as their center for business."
B.M. Gordon: "It will stimulate immigration, and that is just what we need—more people in the state. Seattle will be the business center, no matter where the newcomers settle."
J. Redishheimer: "I am afraid that there will come to the state a class not wanted. With low rates, everyone who feels loose can pick up and turn back to new fields. With high rates those who come must have a purpose in view before they start. I hope I am a pessimist, and that something will be for the best."
E.V. Partridge: "If people come here to settle, the splendid climate and advantages of the place will speedily be recognized, and they will start right in to grow up with the state. All classes of people knowing all sorts of trades will come, and what we want in the state now are people who will work."
W.J. Degg: "The cheap rates will help the state, but how much I would not be able to guess."
Messrs. Spelger & Hurlburt: "The influx of people will advertise Washington, and cattle in particular, as nothing else could do. Our industries will improve in all branches. The benefit will be immense."
This 1903 headline captures the exact moment Seattle transitioned from a regional trading post to a major metropolis, driven by aggressive railroad marketing. The tension between the merchants who saw 'legitimate business' potential and those fearing an influx of 'undesirable persons' mirrors modern debates about housing density, infrastructure strain, and the cultural impact of rapid population growth in cities like Seattle today.
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