The morning call., 1891-10-29
FOREIGN COMPETITION.
The Pacific Mail Reduce the Rates
on Flour.
How the California Product Was Driven Out Of
the Oriental Markets by a TranspOE-
tation Difference

There IS a big fight on between the steam
shin companies handling traffic between Pa
cifc Coast ports and the Orient. 1t COM
menced only few days ago when the Pa
cific Mail cut the Canadian Pacific's rate on
-four to Hong-Kong and Yokohama, but has
every prospect Of developing in to long and
bitter war.
The struggle is more than an ordinary
rate war between two or more transDorta-
ton companies, and possesses an interest
not Usually attached to traffic squabbles, in-
asmuch as the result will determine the
status of an important California product
in foreign land. 1t is question Of fore
ing California -four out of the Oriental mar
keL in favur Of the Oregon product.
Less than a year ago company OF Jap
anese merchants was formed at Yokohama
for the purpose of operating a line OF
steamers between Portland, Oregon, and
Asiatic ports. The primary object oil TINS
scheme was to bring large shipments OF rice
10 the United States, returning their steam
eTs TO the Orient laden with such American
products as might be picked up.
Several last steamers were chartered ana
transportation commenced in earnest. For
a time the line did not prosper. principally
on account of Canadian Pacific competition,
which was, as usual, hercelY aggressive.
This company would Iun Oriental products
into Vancouver and thence to Portland by
chartered steamer at less rate than the
new line, which had been christened the
Upton Steamship Company.
AN EYE on OREGON FLOUR.
In the meantime the Upton people had
their eye on Oregon -four. They saw I'M
mense shipments going from Portland TO
Hong-kOng and Yokohama via Vancouver
over the Canadian Pacific, while their
steamers were bringing in rice, ana return
ing with very light cargOes. How to con-
troll portion of this trade was the problem
they set themselves TO solve. but for TINE
it seemed insolvable.
The Portland millmen and merchants
would not tship over tramp" line newly
organized by foreign company, giving no
guarantees Of safe carriage or permanency
against a line like the Canadian PACING,
which assured good service and permanent
rates The latter's rate from Portland was
81 50 a ton. The Upton line offered rate
of 81, but still the shippers held oil.
4 few months since another cut was
made. This time it was rate Of 50 80
(Mexicansj and proved sufficient To secure
& largeshare of the Canadian Pacific trade
Merchants and milmen fiocked to the
tramp" line in great numbers, and SO
rapidly did the traffic increase that it be-
came necessary to charter four new steamers.
A NEW LEASE OF LIFE.
With facilities thus Increased, and offer
lug dollar reduction, the new line took
dian Pacific into meeting the cut; and
making a rate of So 80 between Portland
and Hong-kong. The latter line submitted
reluctantly enough, but it was either meet
the cut'-Ur lose the traffic"
While the Canadian Pacific was wrestling
with its spunky little rival for the Oregon
flour trade, the Pacific Mail and the Orien-
tai and Occidental companies were charg-
lug So a ton ON California -four landed at
Asiatc ports. The result can be imagined.
n. L.. F1v tla Ca1i
product rapidly fell off. a low rate from
Portland crowded it out of the markets of
Japan and China, while orders for Oregon
-four came faster than the market could
supply. The local millmen received no
orders and the local steamship companies
no traffic. The mllmen appealed to the
companies and were informed that there
was no money 10 the trade at lower rates
than those in force.
THE REDUCTION.
Concerning the situation and the final
ferced reduction, the General Trafi; Mana
ger of the Pacific Mail said yesterday:
e '0ur rate has never been lower than Sc a
ton, and has never been considered by ship
pers as unreasonable We hoped to main
tain 1t through the trouble in the north, as
against the SO 80 rate from Portland.
"When il comes to a question of forcing
California -four out of the Oriental market,
we thought it time 10 protect the California
shippers and, consequently, we have not
only met the cut of the Canadian Pacific
people but have undercut them. Our rate
is now So to Hong Kong and Yokohama
"This ought TO restore the -four Of Cali
fornia to its original status 10 the Asiatic
market 1t is acknowledged By all TO be
superior to that produced in Oregon, and
with the present low rate will soon be the
faVorte article again. The result Will
probably be that the Upton line, in order to
secure the Portland business against the
California trade of the Pacific Mail, will be
forced to a rate of 81 or less, which means
that 1t will ultimately abandon this class Of
traffic altogether.
Another result of the present trouble
will affect the Canadian Pacific. unless am
greatly mistaken. 1t is my honest opinion
that this line will be forced out OF the Ore