St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-08-01
Five American Steamship Companies Form
a Combination to Coerce the
Government.
No Pablo Inconvenience VIII Result, the
Service in Most Gases Being
Expedited.
Surgeon General Wales Suspended
Five Years. for Neglect
OF Duty.
Half n Dozen Heads of Departments
Invited to Step Down
and Out.
S,nnmshipmaiI Service.

WASHINGTON, July S1.-Five American
steamship cOmpanies-the Pacific Mail
(San Francisco to AuStralia), the Red ID"
New York TO Venezuela), the Clyde New
York TO Turkistan), the New York, Ha-
wanna u Mexico and the New York & Cuba
lmes-haye declined to carry the United
States mails after to-day. In commenting
upon this action, Postmaster General Villas
to-day said: Certain American steamship
lines, probably under the lead of the Pacific
Mail Steamship company, entered into
combination. apparently with the purpose
OF forcing the distribution among them of
O,o0O, appropriated by congress for mile
age compensation for carrying the mails.
Some OF them wrote TO the pOStOffice de-
partment desiring to know what terms
could De given. L proposed TO each of the
companies 10 go the full limit that the law
would allow, and award TO them both sea
and inland postage. This is about three
times what they had been receiving for the
same service during the past twelve years.
1t is three times what is paid for carriage
across the Atlantic. 1t is, probably. in
most cases all that should be paid for car
Tying the mails. The companies were still
acting in concert, and in consequence of
the combination refused to accept these
terms, which were so liberal as compared
with those they had received. They felt, l
suppose, that they could drive the govern
ment out OF the position ii had taken by
REFUSING TO CARRY
the mail for tine compensation offered. The
companies seemed 10 think that ii they re
fused 20 carry the mails, there would be no
other course left to the government but to
make contracts with them. and distribute
the money (S400. .OO0). Accordingly, Sched
ule for the transportation of the mails has
been arranged. and they will all go with
very little difference in point of time, to
Their places OF destination. 4 statement
has been made in the newspapers to the
effect that the United States government is
not as liberal as Great Britain in compen-
sating steamship lines. In point of fact,
the rate which has been offered 70 our lines
very much exceeds the rate paid by Great
Britain. The rate we offer is G3
PEI cent. more than British lines
receive from their government. 1t was a
rats unjuStifiably large-mOre than ought
to be paid-but the government thought it
fai' 10 90 to the utmost length which the
law and reason allowed. in order to avoid
any difference with the American steam
ship companies until congress should meet.
liucilt Has ttistuc SuCu
that the public will suffer no inconveni-
encc worthy of mention in respect TO carry
ing the mails and in some cases. notably
the Cuban service. the mails will be eXpe-
cited" The superintendent of foreign
mails said the american companies had re-
fused an offer of SLIGO per pound Tor car
rying the mails. This is what is known as
combined sea and inland postage, and is
equivalent tO S32 per ton. They receive at
present the international rate. or A cents
per pound.