The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1868-05-23
Report Of ,ae Committee oa coosmeree.

TO al % -1I|sS ~. hssHonaos, frcsi0sN y pr
Ls1>t~A sssRbfg:
SIR. YoR COMMITTEES were instructed by the As
sembly, on q Ssh of May, to give hearing to all
~4.,;ics intcrestei. II TO report as to the expelieney
Z. - piing subsidies y any company formed Cor the
pgrposc finteIisland navigation. and also a to the
like cxpe.. Nncy Of granting a subsidy TO n line OF
steamers now plying between Honolulu and San
Francisco.
Ia obedi ence to our instructions, We have considered
the testimony laid down before us fron, all sides. and
beg leave to report as follows:
/. As to inter-island steam navigation, We fad that
there is in existence the Ia,er-islaad Stesaa Nsviga-
ton Company, who own and run the steamer Ktiaue0.
This Company has been in existence about S years
and has not been successful. Itdoes not seem to have
carried with it any degree Of improvement, or to have
enriched the country, even ut those points where the
steamer has regularly made its voyages. Instead Of
such increase in the productions and business of the
country and a corresponding increase in tie receipts
of the steamer for freight and passage. we find snch a
decrease in the receipts of the steamer. that the Com
pany cannot longer exist, nor the steamer run without
government assistance, although it has always enjoyed
exemption from payment of license. Wharfage and
water, &c. In opposition TO the interests Of the
KslQuea and the Company, are the coasting schocncrs,
which represent a capital of more than SiG0.0e0,
and which pay for license, water. Wharfage &C., be-
sides carrying the mails free of compensation. and
whose owners contend that it will be detrimental 70
their interest, and contrary TO the even-handed pro-
lection with which the government should regard the
Interests of all, for this Company to receive a yearly
subsidy i'll addition to previous bounsies. Your Com
mittee does not fail to see some Justice in the claims of
these coasters, but is however convinced that the
schooners will continue to prosper as well rs hereto
fore, even If the steamer receives the proposed subsidy.
The Committee consider the running of the hTiaaea
n convenience to the Kings Government and to the
public in general, and therefore, taking into account
the fact that it is owned in the country, and It's earn
ings are spent in the kingdom, and also that the bust
ness of the country has already for years been carried
on in adaptation TO these regular weekly trips, do rec
ommcnd to the Assembly the appropriation to said
Company of the sum of $4,000 yearly, tohe granted
on strict %fulfllment of certain specific conditions by
which the public shall be best accommodated. Among
these We would specify the guarantee on the part of
the Company of eleven trips per quarter, with anfaii-
ing regularity, as published per timetable, under
penalty of $500 dollars for each trip omitted. The
COMMITTEE are of opinion that it would be advisable to
discontinue the trips to Kauai.
:. As to the line of ocean steamers now plying
between this port and San Francisco, Your Committee
find that the Company called the California, Oregon
and Mexico Steamship Company are under contract
with the United States Government TO perform ten
trips yearly between the aforesaid ports, for which
service they are to receive $4,000 IN United States
currency per year, for the period of ten years, and
there seems to be no doubt whatever, bat that this con-
tract viii be fulfilled. This Company now propose to
run an additional steamer and make eight more trips
per year, making eighteen in all, or one every three
weeks, provided this government will grant them the
sum of $4,000 per year for two years They also
promise not to raise their charges for freight above the
amount of Sc per ton, on Hawaiian staple products,
nor the price of passage above the limit of $50 per
passenger.
Your Committee would question the proprietyof a
contract of this nature with a Company already un-
der contract to a foreign government, as it might at
some future time lead to undesirable complications.
Without, however, charging on this subject, the Com
mittee would go OH to consider the expected advanta-
gs to accrue to the country from these additional
trips of the steamers.
With respect to the carrying ofsugar and molasses,
which products make up the bulk of the exports OF
this country, Your Committee are of opinion that
steam conveyance is to that degree more expensive
than that by sail, that it is less economical in the long
run, and that a part of the additional expense viii
come upon the planters in this country. The saving
of interest on the value of the cargoes, in consequence
of the shorter passages, and the saving In insurance
by steam conveyance, would, in the opinion of the
Committee, but partially counterbalance the addition
ri expense; whereas, with valuable and assorted car
goes these two items would have great preponderancc.
Moreover, the lumber brought to this market comes by
sail vessels, which would be compelled, If all the su-
gar went by steam, to go back in ballast, thus involv-
ing a loss somewhere on the score of economy. Either
the price of lumber would be increased, or the freight
would be taken away from the steamers; so that at
the end of two years the steam line would still need a
subsidy from this government as much as at preseat,
inasmuch as the only condition of success to the
steamers, as shown by the statements of their agents,
is that they carry full freight, or In other words the
bulk of our exported produce.
1t would seem to the Committe that sugars and
molasses belonging to that class of freight which nat
uraliy, by the ordinary laws of ocean transportation,
is to be carried by sail rather than steam. 1t has
been proved to the Committee that this is the case
with respect to most sugar-growing countries. The
Committee DC not however call in question the perfect
adaptedness of the steamer to carry these articles
without damage to the shipper.
1t has been thought by many that the regular and
quick trips of the steamers would very much encour-
age an extensive fruit trade and the culture Of fruit
for the San Francisco market The Committee con-
slider the Importance of this point to have been some
what overstated. In the first place the market in
San Francisco for bananas Is not large, and the
whole amount of the said fruit, which would be taken
over by the steamer in a year, would not exceed in
value at our wharves the sum of $500 to 81, 900.
In point of fact, sailing vessels and steamers present
about equal facilities for carrying any kind of fruit,
even with the best care on the part of steamers. With
respect to oranges, the Committee are of the opinion
that ii has not been for the lack of steamers that the
trade has not been more hourishing. Sailing vessels
have for n long time carried abundant supplies, both
from the ports of the Kingdom and from Tahiti to
San Francisco.
1t is urged that more passengers would be carried
between the two ports, and more persons induced to
come to the country, and, settling in the country, thus
develop its resources 1t is a fact that a great many
do already come to the country with the intention Of
locating, and 20 away, not because there is not sufi-
cient frequency of steam communication with San
FIR incisco, but because internal facilities for commu-
nication are SO lily provided for. 1t would SEEM,
therefore, that the present call is more especially for
improvement in roads on the islands themselves, and
for opening the channels of trade between the out
lying districts and Honolulu, whence there is already
sufficient provision made for carrying the produce of
the Islands TO other parts of the world.
The interests of merchants in Honolulu would GER
tainly be furthered by the increased frequency of
regular arrivals and departures of steamers. But it
must be remembered that the real wealth of the coun-
try comes from the cultivation of the soil. As this
wealth passes through the hands of the mercantile
class on its way to be exchanged for the products Of
other countries, a certain per centage falls to them
as profits. Increased frequency and livelines Of
trade leaves a larger amount Of profits TO the mer-
chants, but unless the soil brings forth more to its
cultivators it would be a fictitious gain to the commu-
at large. Unless, therefore, in some way the