The morning call., 1892-03-06
THE PACIFIC MAIL SUBSIDY.

Senator FELTON, has introduced a bill into
the Senate providing that the postal sub
sidy which is now being paid by the Gov
eminent to the Pacific Mail Company shall
be withheld so long as the company is in re-
ceipt of a subsidy from the transcontlnental
roads for maintaining the present eXorbi-
tant IA ties of freight between New York and
San Francisco. This is but fair The conf
pany has no right to draw both subsidies.
The Government allowance, which is nomi-
pally paid for carrying the mails, is in
reality bonus for extending and promoting
maritime commerce; if the Pacific Mails
way of promoting and extending it is to
enter into a combination TO tax shippers for
the benefit of carriers. it is time the sub
sidy were withdrawn.
Aud of the facts there appears to be no
question. In au article published in yester-
days CALL, it was shown that in the past
fifteen years the railroads have paid the
enormous sum of S14.5550 600 to the Pacific
Mail, on the condition that it shall not CON-
pete in through freights. The arrangement
is made in such way that the railroads can
deny that they pay the money. and the
steamship company can deny that il receives
the money. The result is attained 10y the
charter by the railroads of so much space in
each steamer, at fixed rate Of $50 per ton.
AS matter Of fact, the railroads do not
need the space. and do not usually use it,
but whether they use it or not they pay for
it. A subterfnge of this sort would not i'm
pose upon court for moment. The naked
fact is that the steamship company has been
getting an average of million year from
the roads for living up to the freight rates
which the latter make; and as the railroads
have continued to pay this sum for fourteen
years, il must be presumed that they can
afford TO do so, or, in other words. that, but
for the arrangement with the steamship
line, shippers would have saved more than
a million a year in freighis 1t is just so
much that the roads take out Of shippers
over and above the sum The former wonld
receive if there were free and open competi-
ton between the water route and the land
route.
Mr.. Felton's bill will not distress the
Pacific Mail. The sum paid by the Govern
meut under the act of last year is so small
that the company win not miss ii. 1t would
be very different if the common and the
statute law were enforced and proceedings
were taken against the railroad companies
for buying eff competition. Such proceed
ingS might lead TO a stOppage OF the million
which the roads now pay yearly to the
steamship line, and that would be embar-
RAISING 1t is quite doubtful whether the
new ships which the company is building
could be finished ii that source OF income
were cut off.
But it would be impossible, on this side of
the continent at all events. to rouse SYM
pathy for the Pacific Mail if its resources
became impaired. 1t is the only concern
which maintains direct communication be-
tween San Francisco and nineteen ports
lying south Of US between this city and
Panama. But it levies such tolls On the
exchange of passengers and merchandise
between these ports and San Francisco that
II actually binders instead of promoting our
mutual Intercourse. The freight schedule
on goods shipped in Pacific Mail steamers
from San Francisco to Mexican and Central
American ports, and on produce shipped
from those ports to this city. is so exorbi-
tant that the bulk Of the merchandise con-
sumed on the west coast OF those two cOuH-
tries comes from Europe, and the bulk of
their coffee and other products goes to
Europe. The Pacific Mail is actively en-
gagged In diverting trade which ought 10
come here to Liverpool and Hamburg. That
1t sacrifices its own interest in so doing is
obvious, bat that is not to the purpose; very
few corporations are conducted with iudg-
ment and foresight. In the eyes of most
corporations cash dollar seems so large
that it covers the whole field of vision.