The morning call., 1892-05-11
Representative Bowers Scores the Sub.
sidized Corporation.
HOW IT Has FETTERED COMMERCE.
California Losing Her Trade BY Combinations Of
Corporations for The With.
draWal Of the Subsidy.
Special to THE MORNING CALL.


cerniDg the Pacific Nails noncompliance
with lis Government contract. Bowers be-
gan by reading his resolution. and explained
that the Postmaster General had made San
Diego port of call on the San Francisco
ard Panama mail route, and although the
Pacific Mail claimed it would delay them
hours 20 stop there, and they would not bid
if it was left on they did bid and secured
the cOntract. He then showed that not in a
single instance has the steamship company
performed its contract.
Bowers said: THAT law (the subsidy
law was to facilitate commerce and expedite
the mails. They are under this contract re-
cetvlng subsidy from the treasury OF the
United States Of from $1,000 to $1,000 for
each trip. for which they are to stop during
the two months occupied in going and re-
turning) at Is ports. But they only stop at
two. What was the result? AS soon as
this contract was signed and before the ink
was dry they began 10 seek the means Of
avoiding stopping at San Diego at all.
Now we have wholesale merchants in san
Diego who desire to import direct and here
Is an American steamship line receiving a
subsidy from the treasury Of the United
States calling twice a month at that port
and refusing to give them any facility or to
receive or bring them any freight"
Here Mr.. Bowers read from the affidavits
OF the business men of San Diego and Los
Angeles who had been refused transporta-
tion facilities by the Pacific Mail Company.
Read Fettered Commerce"
Mr.. Bowers then took up the pamphlet is
sued by the San Francisco MORNING CALL
entitled "Fettered Commerce" and showed
hot nil. .riN 70 arai, I
last the Pacific Mail Company received
S146J5,oC0 as subsidy from the transconti-
mental railroad companies and is now re-
ceving $4,000 month from those COM
panies.
why do they refuse to take freight from
this American port? | VIII tell y0u, and
Mr.. Bowers then read an account OF the
meeting of the Tran sentimental Railroad
Association held at Chicago March 20, at
which 1t was agreed that the Pacific Mail
Company should receive no freight and take
no passengers from San Diego or any Amer
lean port south of San Francisco, the rail
road companies agreeing among themselves
on the amount to be paid the Pacific Mail
Company for thus refusing to compete with
them for freight or passengers to or from
the only American pOrt-San Diego-at
which they touch south OF San francisco,
and thus keep up the rates"
Mr.. Bowers also read from the report OF
the October meeting Of this association,
showing tnat they had agreed 10 deduct 1913
per cent on their eastbOuud freight earnings
TO pay this subsidy to the Pacific Mall Com
pany.
Paid by the Railroads.
Mir. Bowers continued What Is the
reason they will not receive freight or pas
sengers from this port? Because they are
receiving this enormous subsidy from the
railroad companies on the express condition
that they VIII not receive freight or pasSeI-
gers from this American port. 1t is for this
reason that they do not afford the ordinary
IA cllities that common carrier IS bound TO
afford. Now, gentlemen, | think, as say
in this resolution, that II Is not only an III
suit but an outrage that out OF the treasury
of the United States you should pay
steamship company (already subsidized
against public policy that absolutely re-
fuses to accord tile common ordinary lacill-
ties TO American citizens IN American ports
that it freely grants TO every Chlnaman,
Mexican and everybody else IN every Mexi-
can port or foreign port. For this reason
ask that the contract be annnlled.
This subsidy act was TO encourage COM
merce, but here is a steamship company
receiving money from the United States
treasury for tile purpose of encouraging
commerce, and instead Of that is actually
repTessing it. working in antagOnsm to 1t.
Nov, wo have a steamship company that
runs from San Diego as far south as En-
senada, Lower California. If the United
CLdttS w IL Udy Aitb COdA Dil VI al HUT
pendent company from San Diego south, as
it does the Pacific Mail Company's coal
bills, from the treasury OF the United States,
we will have one in 90 days"
Mr. CroSby-NhaI does the Postmaster
General think about the matter?
Mr.. BOweTs-"He does not know how far
he can 90 in protecting these contracts. |
presented this resolution to him five weeks
ago, and he asked me TO wait and see what
he could do, and it seems he has not been
able to Go anything up TO this time to make
this subsidized, arrogant company afford the
ordinary facilities OF common carrier.
Resembling the Contract.
I'VE have firm doing business in San
Diego that desires to import direct, and
here is an American steamship company
receiving n subsidy from the United States
treasury, calling regularly al this Ameri-
can port, and refusing to receive any freight
or do any business with it. Under no other
government on the earth except the United
States would such an outrage be permitted.
| ask that this contract be annulled."
Mr.. LOud-We could not do that except
upon the ground that they have not COM
piled with it to TIE letter.
Mr.. Bowers-Yes, but n contract that is
against public policy, which is not in ac-
cordance with the provisions OF the law
under which it purports 10 have been made.
is vitlated and may be set aside, although
the party may have technically complied
with 1t; and the excuse for this subsidy
given in the body of the law is ito promote
commerce" and any contract that restricts,
prevents or hampers commerce is contrary
TO the provisions Of this law, and may be
and ought to be amended.
A subcommittee was appointed to take
the matter under consideration and report
to the whole committee. 1t consists of
Wheeler Of Alabama, BTookshire of Indi-
ana and Caldwell of Ohio. At least two Of
these are in favor Of the adoption of Mr..
Bowers resolution, and it will doubtless be
acted upon favorably.
May Crop Returns.
The May returns to the Department OF
Agriculture show that on account Of the
wet and cold weather the area planted in
cotton is per cent less than usual at this
time OF year. The condition of rye ad-
Vanced from 81 TO $50 Winter barley aver
ages 92.S. The percentage of New York is
o.; California, %; Illinois, 90; Michigan;
So. Moving lands suffered some loss OF
condition from winter freezing, but make
higher average than winter grains. or 500
for the entire breadth. The condition OF
pastures averages S7.5. The proportion of
spring plowing usually done on the first Of
May, is little above three-fOurths for the
whole country, or rs 9 per cent as reported
The present season has been cold and un-
favorable for the rapid progress Of spring
work, and the proportion returned os done
Is only 646 per cent. In the Eastern States
the temperature has been high and work is
more advanced. Altogether the spring may
be considered late ana the work of the farm
has been crowded into narrower limits.
The weather on the Pacific Coast has been
comparatively cool and plowing delayed.
Free Iron Ore and Sugar.
number OF the Democratic members Of
the Ways and Means Committee are dis
cussing the subject OF free iron ore and free
refined sugars as measures which should be
passed this session as a part Of the tariff
policy of the majority Of the House. 1t is
stated that assurances are wanted from the
Senate before committee action is taken on
the free refined sugar bill, and 1t is proposed
to ascertain the views OF Republican Seaa-
tors. 1t is reported that Sherman will favor
the bill.
The Ranm Investigation.