The morning call., 1892-03-12
HOW PACIFIC MAIL KILLS TRADE.

San Francisco is at last awakening to the
causes Of the decay of its trade. People at
large are at length perceiyiDg what alert
minds long ago discerned, that the interests
of this seaport are being sacrificed to the
greed of two corporations, the Pacific Mail
and the Southern Pacific, and they are cast
ing about for a remedy for the wrong THE
CALL articles on the subject are being read
with aydity; indeed, one hears no other
topic of conversation in commercial circles.
1t appears on investigation that it costs
fYe-eighths of a cent pound to move coffee
on Pacific Mail steamers from any port in
Central America to San Francisco, say an
average Of 2600 miles, and three-ffths of
cent to carry the same coffee on the
steamers of the French Compagnie Generate
TrapsatiantiQue or the Hamburg Ameri-
can Company TO Havre or Hamburg, dis
lance Of say u, 600 miles. The consequence is
that the bulk of the coffee grown in Central
America, which amounts in value to about
S13000,000 a year, goes to Hamburg or
Hayre, and q smaller quantity to this port,
though we are so much nearer and though
coffee is admitted free here and has to pay
q duty in France and Germany. Nearly all
the coffee of Central America is produced
in the three States of Guatemala, San Sal.
vador and Costa Rica, and is shipped from
coast ports, beginning at Valparaiso, which
is 1869 miles from San Francisco, as far
south as Punta Arenas, which is 30i3 miles.
The average is 1851 miles. For carrying
coffee this distance the Pacific Mail charges
more than the German and French lines
charge for carrying The same coffee down
the coast Of South America. round the
Horn and across the Atlantic to the British
IL IL
coffee-consuming centers of the central val
legs, ST Louis, Chicago, Milwaukee and
St Paul, get their Central American coffee
from Europe, instead of getting it from San
Francisco as they should.
And the practice is two-edged. People
always buy where they can SELL As Gen.
trail America sells the bulk Of her coffee to
France. Germany and England, she gets
most Of her imports from those countries.
From the last trade returns from that part
CT the world, which were made up for 1888,
il appears that the total imports of the five
States, with British Honduras added, were
$500, 600. of which the United States con-
tributed only S4 1915 One of the heaviest
articles of import is cotton goods. OF these
the United States sent to Cen raj America
shipments valued at SAG 00 while England
sent "a, 103, 600 worth. 1t has not transpired
that the Pacific Mail ever made any effort
to stimulate exports from this port to Gen.
trail America by reducing IFS freight rates
TO those which are accepted by the Royal
Mall Steamship Company, with which the
Pacific Mail prorates. 1t is known that its
rates on machinery have operated to check
exports Of that class of goods from this
port.
Before the Pan-American Congress met
last year representative of the State De-
partment interviewed Mr.. j. N. Munoz of
New York, who has been twenty -eight years
IN the Central American trade, and asked
him why our commercial exchanges with
Central America were not larger. He said
that in many lines Of goods the exchanges
were increasing, but he added:
There has been falling Of In many lines OF
exports from this country, principally manu-
featured articles, such as agricultural impe-
ments, tools, hardware, furniture, shoes, cotton
fabrics, paper, etc. The falling of can be clearly
traced to the cheaper cost of the European
articles OF the same class, competing 10 the same
markets.
Mr. MunoZ was evidently not posted.
The United States can undersell England
in almost every one Of the classes OF goods
he enumerates; as is proved by the export
OF those goods to Great Britain, and their
ready sale there in competition with English
goods. We make in this country better
agricultural implements. tools, shoes and
furniture for less money than they do in
England. and If we could land them in Gen.
trail American ports on equal terms as to
freight, there would have been an increase
and not decrease in our shipments.
The simple fact is that the Pacific Mall is
an antauated institution which is run on
the od-fashioned rule of exacting ali the
traffic will bear without regard to the effec.
OF the exacti0n on the natural growth Of the
traffic. Ii we had between San Francisco
and Central America line of steamers
which was managed with intelligence, 9
freight schedule would soon go into effect
which would draw tie bulk OF the Central
American coffee TO this port, and would
supply Central America with the bulk oil
its imports. But that cannot be expected
under the present regi me-