The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1868-05-16
The Steamer Subsidy.

Mr.. EDIroR IL believe you did an injustice &c
many opponents Of the subsidy to the California,
Mexico and Oregon Steamship Co, in your last issue,
with reference to the grounds Of those in opposition,
and propose to recall a few of the objections urged
against it.
The propositions Of the company first excited some
surprise in the minds Of business men, from the fact
that the company stated that they were losing money
on the one steamer running with a subsidy OF $1,000
per trip, and yet proposed to run a second with a
subsidy Of Sd, lbs per trip. 1t was plain that there
must be greater loss on the second boat than the first,
unless the company intended 10 furnish 4 vastly IN
feriOr vessel, such as they furnished the Mexican
Government for a war vessel, that they expected to
run off the sailing vessels, and by exorbitant rates of
freights make up their losses, or by displacing the
packets, and then demanding a higher rate Of subsidy
when the term expired FOR which this was asked.
Either one of these courses, which are characteristic
of steamship companies, or wondrously philanthro-
pic motives not common TO that class of business
corporations, actuated them in their offer, and neither
of those courses. it is admitted, would be favorable to
our interests. 1t IS true the company could well af-
ford to agree not to charge over Sc per ton, for two
years, for in the pursuance Of their most natural
course, they would have TO carry for less than that.
for that length of time, in order to run off the pack
cts. Considerations of this nature were well calcu-
lated to excite profound thought among planters and
merchants.
Men who regarded political morality in the country
Of some value were surprised to learn that the ma
chinery for lobbying private bills through the Legi-
lature, which has proved so baneful an influence in
California, was TO be established here; that ample
provision was made for convivial influences, lobby
agents engaged, and all those subtle manipulations
so common in California politics were to be among
the first blessings Of steam communication
1t was shown to the Committee that it has always
been the policy Of steam lines, aud the practice of
this one, to drive OF all opposition, and then raise
the rates of freight and passage; that this Company
did so in the Oregon trade. and that the citIzcns of
were obliged. At great loss, to run an op-
position line for their own protection that the m
crease Of freigbts TO $40 per ton would tax the pro-
duets OF the Kingdom Sl5O.0OO per year that it
not always easy 20 get together sailing vessels
OF the proper description 20 replace those driven
Of that it wOgld be hard to obtain such. especially
an established line was ready TO oppose them
by q reduction OF rates, whenever such opposition
became Of enough importance that freights had
already been higher since the steamer ran shan be-
that influence sufficient had been brought to
bear to prevent the lumber vessels which used to
ay on the route IRON doing so. and Consequently
20 much competition was prevented hat sugar and
nolasscs. our chief products. were TO a very snail
.xleut carried by steam from any sugar growing
country that carriage by steam was naturally
more expensive than sail. and Tat consequently it
would enhance tie cost to the consumer. the cost
4 imports, AM decrea>, ibe netrcsll; "a IT, p'ante