The morning call., 1892-03-05

do thus far has been to look at each other
and say: "1ps a great pity, but how can
we prevent it?"
At last they have made up their minds
that they can prevent it IL they 60 about it
In the right way. and under the generalship
OF President James b.. Stetson Of the Traffic
Association they are about to begin the at
tack.
1--WE ara not going to sit still and let this
thing go on any longer" said Mr.. Stetson
to CALL reporter yesterday. "We have
begun in earnest, and we have secured
powerful aid on our side. No adequate idea
of the wide extent of the injury done to San
Francisco by the payment of this subsidy
ana the sitting of competition has been had
by our people. But with the aid Of as good
railroad expert as there is in the State we
have been digging into the secret corners of
the thing little. Now we are nearly pre-
pared to begin our fight and rid San Fran
cisco of this incubus upon its healthy and
natural growth"
MI Stetson told the reporter where be
could go to get the facts and figures TO which
he had had access, and when these were
obtained it was seen that he had just cause
for waging war against the evil.
Hidden away down deep has been this
matter of the Pacific Mail subsidy from the
railroads. Its existence has never been
doubted, but its details were covered with
the haze which always surrounds such af-
fairs.
TO run suddenly up against the naked
machinery Of the combination startles one,
particularly If he has a reverence for big
figures which represent good solid American
dollars.
The fact that in less than fifteen years the
Pacific Mail Steamship Company has virtu-
n
railroads in order that they might enjoy the
traffic without disturbance and make such
rates as they may choose Is in itself a great
une0mpromsing and very ugly fact for our
shippers 10 contemplate, but 10 think that
that sort OF thing must continue In spite of
all laws to the contrary is an intolerable
thought for them. But II is going on now
and will continue, unless the Traffic Associa-
fiOn's fight shall be successful one, which
every shipper fondly hopes.
From the figures obtained 1t is known
that under its contract with the Transcon-
tinental Association the Pacific Mail re-
ceives $4,000 month to maintain rates
and let the traffic Of the railroads severely
alone This 1000 is not paid out fiat, to
be charged TO subs idy account, or anything
OF the sort. No. indeed. that would not do,
for If the Government knew that portion
oil Its % per cent interest In the earnings of
the Crntral and Union Pacific were paid to
buy oil competition it would not stand that
kind of nonsense a month.
So the money is paid in this way: The
TraDseontinental Association takes cer-
tain space OF tonnage measurement 10 each
Mail steamer leaving New York for this
city, or leaving San Francisco for New
York. This space amounts to 1900 tons
each way monthly, or 2400 tons In all, and
the rate per ton paid is little over $50.
Ii IS cheap at that price to the railroads.
whether 1t be filled with freight or not. and
II often is not filled-for it keeps the Mail
Company in good, prosperous, well-satisfed
condition, leaving 1t no incentive to increase
Its traffic by running more steamers, and
making 1t altogether fat, haDpy-go-lucky
concern that can coin nearly 81 0O0 600
year, whether il performs-any real service
Tor the payment or not, besides leaving it
some good picaiDgs In the Central American
trade which the railroads cannot possibly
handle.
What makes the San Francisco shippers
particularly wroth about this subsidy matter
at this particular time is that the Government
is now paying the Pacific Mail Company
large subsidy for carrying the Central
American and Chinese mails. 1t is not
exactly known what this subsidy will
amount to In the course Of a year, as 1t is
computed on mileage basis. But our mer-
chants have come TO the conclusion that,
whatever IT is. IL should be withheld by the
Government until there shall be an end OF the
subsidy compact between the steamship
company and the Transcontinentai al Associa-
ton. They claim that San Francscos POSI-
tion as a distributing point demands some
consideration at the hands Of the Govern
ment and that the withdrawal Of the mail
subsidy should be made ut once unless the
steamship limo is set TO work as a purely
competitive concern, from which San Fran
cisco Can reap some little benefit at least.
Senator FELTON, has become greatly inter-
ested in the fight to place the common car
riers by water and rail on competitive
footing. He has prepared bill which
provides for the Withholding of the subsidy
paid by the Government on the ground that
the Mail Company has entered into con-
tracts with the overland railroads that are
against public policy
The San DISCO people will no doubt be
willing to uphold Mr.. FELTON, In this meas
ure. as they declare the Mali Company Is
not carrying out its contracts with the
Government aud is giving very inadequate
service.
The Government is directly interested in
the matter in another way. Under an act
passed in 1862 tile Central and Union Pa
ctfc railroads became bound to pay the
Government per cent Of their net earn-
ings, .e be employed toward the cancalIa-
tion Of the railroad subsidy bonds. By the