The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-03-06

Ill Pacific Mail twice as
W much for space as IL
could get from shippers
under ordinary conditions, and three times
as much as it could get if there were lively
competition" said a railroad expert yes
teTday.
"How is that?" asked THE CALL man.
'Well. you see, that $4,000 month,
which the TTanscOntinental Association
rays for space in the Pacific Mail steamers,
is rated at a little over $50 ton. Ii the
mail company was not In the combination
rates would go down so that 1t would only
get SO 10 SIS ton"
but is the space taken all flled?'
'No; but enough of ii is occupied with
eastbound freight, with just little west
bound now and then TO make up ballast, so
that the railroads get back some OF the
money which thew pay out. They pay
$500 600 to 81, COO 900 a year Tor space, and
that space earns about 500, 900 as freight
carrying proposition. This leaves the rail
roads only about $500 600 to pay in actual
cash over and above what is earned by the
space"
"Then the TranscOntinental Association
Is really in the steamship business?"
That is what it amounts to. They by
and sell space aboard the steamer just the
same as if they were commission men or
freight brokers'"
r In The course Of further investigation OF
upon some curious facts which show the
wide-reaching effect of the choking off of
the Pacific Mails competition by the rail-
roads. Not only does the TranscOntnental
Association keep the steamships under its
thumb but it eXertS an unboly influence
upon the clippeT-ship lines. How this is
done can be easily understood when it is
known that if steamship rates from New
York 10 San Francisco are firm at SIS ton
the eiipper-shiD rates On certain classes OF
goods are firm at the same figure.
"But how about the competition with the
railroads p IL asked.
Now, here comes in the fine work of the
railroad people.
You keep your rates up at about the
same figure as the steamship lines" the
railroad men say to the clpper-ship men.
"andwe Will make ii ali right with YOU"
"Nill you give US subsidy?'
NO, but We will give you plenty Of
freight"
What kind of freight?"
Railroad iron and railroad supplies
cheap stuff that we can't get over the trunk
lines to our roads without paying more
than we care TO for the hauling of II"
And so the contract is made, and the rates
aTOund the Horn are not low enough to af-
ford the shipper any inducement to SEND or
bring bis goods by that route. Thus. prac-
tiealIy speaking. competition in the trans.
portation business between this city and
New I DIRK is smothered all around.
For great IS the power OF the Transconti-
mental Association.
member Of tie Traffic Association in this
city that he has taken up his fight ag ainst
the Pacific N all subsidy in earnest.
II think," he says, That it is a matter
which the San Francisco merchants ought
TO keep agitatlng until something is done.
can readily see how great thing the re-
moval OF the railroad subsidy will DC for
California"
Here is the language of MIR. Felton's bill.
following the portion of the section fixing
the rate OF compensation to be paid for
ocean mail service at "a mile for first
class ships, 81 for second class aud 81 for
third class:
And provided further, that no steamship so
employed, and no person or persons, or CON-
pany, cont olll1g, owning or running such steam
snip snail be part OF any combination, associ
alton. pool or understanding whatever, 10 fix, OIL
alter or piorate passenger or freight rates. with
any competing steam or railroad lines, or dc
any other thing whereby the competition OF such
steamship shall be affected. or traffic il or
by Iessened or discouraged, or It's standing
and effect as an independent eOmpe, ing line
shall In any way be affected; and before said
s ssam, 10 OF person or persons, or company
established 10 the satisfaction OF thA Postmaster
General that this proyiso has not been violate d
BY such steamship or person or persons, or com.
pany.
La reference to this bill letter has been
sent by President James B. Stetson of the
Traffic Association to Senator FELTON,, in
which criticism is passed upOn the bill. The
writer of the letter saws:
IL this BILL with amendments becomes a law
what effect would 1t have upon contracts which
cover period OF years, which may have been
made between the Postmaster General and
steamship lines prior 10 its passage, alt though
the said contracts may not YET be In operation
suppose further. that such arrangements as II
sought by this bill 10 cover assume the shape
oil lease OF the freight or passenger carrying
eeapscly or any part OF II, of said steamships
Ii appears 10 me that it would be necessary to
cover Ibe case by still further amendment pro.
hibiting the leasing 10 another or ether car.
placing the control OF their freight OF
passenger traffic out OF their own hands.
liz other words. TO prohibit The Postmaster.
me ael with any steamship company which does
not IN every respect manage and operate their
freight aud passenger traffic under the same
management with whom his contract is made.
Ii might be considered hardship to tie them
up as hard ana fast as is contemplated by the
above, but II The case have IN mind is 10 be
Hiet or properly reached II would appear to me
10 be necessary.
believe that Information can be found as to
Inc arrangement between the Pacific Mail
otesmship COMPANY and the Transeontinental
Association which Will outline case TO be met
on the lines contemplated by Mr.. Frlton's bill.
VI course tie price paid 10 the Pacific Mail
steamship Company by the roads for space
rental Is excessive for the services performed
and greatly In advance Of any sum which could
be earned by the steamship company In the
space alottrd under the contract il anpiled on
the class OF freight carred-iD fact more than ls
earned by The sll-rail lines on a similar amount
OF tonnage III the aggregate from New York 10
6au francisco.
It's IlainIy evident TO any one at all convers-
ant VIII the condition Ia the case that the in
tent 10 SUBSIDY, pure aud simple.
fct Inc case Is SO susceptible OF technicaiities
tnat the dlfnculties IN reaching IL to absolutely
break IL w are very great. Besides there still
remains bis feature OF the case: Even though
Dill can DC SO framed as TO be all sufficient for
Inture cases, does IL or can Ii vitiate contract
already made aud signed for period OF time be.
tween the PostmasteT.General and q eieamshn
company?
II would appear to me. II such parties were no,
10 violation OF an existing law when such con.
tracts are made, they would naturally hold good
Tor the period Tor which they are executed
H. however, the ease IS different and paytopnt
under such contracts can be suspended until tile
steamship company Is able TO prove that il Is mol
engaged In such Objectionable or Illegal com
bIDation, Ii would seem though 1t could be
reached and be obliged to desist from such prac.
tees
This thing as II now exists is something which
the commercial interests OF the Pacific Coast and
Of California I'm particular should no lonRssr be
subjected 10.
In plain English they are pau the hecessnru
price to impose an unndtnr...t burden upon thei
commerce.
So it will be seen that the Traffic Associa.
ton as Veil AS Mr.. FELTON, is in earnest In
tb.a matter. A big fight has been CON-
bienced, and it will not cease until some
thing is heard TO drop.