St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-30
THE SHIP SCHEME FAILED.
waterway CO .PETI73o.5 WAS H07
SUCCESSFUL.
FAILED TO EARN ExPENsEs

California shippers to Com
pete With the Transcontinental
Railways Fails to Earn Operat-
ing Expenses--Falls in Debtito
the Panama Hallway. Us
Recent Associated Press dispatches
from San Francisco revealed interest
ing information relative to the North
American Steamship company. This is
new enterprise, brought into exist
ence last spring. to further the inter
ests or the California Freight associa-
ton. j. S. Leeds, the eX-general traf-
fic manager of the Missouri Pacific, is
the steamship company's commissioner.
This company was formed for q def
mite purpose-that of competing with
the transcontinental lines and other
roads, as well as the Pacific Mail Steam
ship company, in traffic from the
coast of the Atlantic and interior
points west thereof. A local railroad
official fully explained this matter yes
terday in these words: lit was claimed
by the California Freight association
that the Pacific mail and the clipper
ships via Cape Horn were worked in
harmony with the rail lines. They
maintained excessive through rates,
which were very Injurious to the inter
ests of California shippers and pro-
ducers." He said that while the Trans
continental ASSOCIATION was alive di-
vision of tonnage agreement was in
force between it and its competitors by
sea, so that the all-rail lines should get
fair return from the business. Just
before the Great Northern had its line
finished for through traffic the Tlanscon-
tinental association gave up the ghost.
1t seems that Mr.. Hills road did
not take kindly to the through rate
basis that had been in vogue. This led
TO a conference among the interested
roads, resulting. on Feb. Is. last, in the
issuing of the tariffs dated OH that day,
applying to North Pacific coast points.
These rates were adopted by the Cali
fOrnia lines, with the exception OF some
minor details. Subsequently the North
American Steamship company. in con-
Junction with the Panama Rail com
pany, fired the first bomb in the warfare
of rates from California to the Atlantic
by way of the iSthmuS of Panama, by
applying a SDickerSnee to the rates and
reducing them. The result was start.
ling. for general commodities were
carried from New York TO San
Francisco at nominal ad-
vance over the tariff applying
from New FORK to Chicago. The water
carriers rates were almost unanimously
ignored by the transcontinental lines,
with one exception. This line was the
one running via New Orleans and Gal
weston from New York. This road has
promptly met every cut since to Cali
fUrnia points. AS it has excellent train
service and can make fast time, it has
done heavy traffic in consequence,
Ii the dispatch from San Francisco is
based Oh truth, the conclusion is that
the North American Steamship com.
pauy has failed to earn operating eX-
penseS, and that the Panama Rail COM
pany Is its creditor In the amount of
100000. it this is SO, then freight has
been transported under cost. This deficit
in revenue must be squared either by the
shippers or the owners of the railroads.
Though the claim of excessive rates
prior to the cut may be true, still the
rail rates on this class OF business are
lower in proportion than average rates
in other portions of the United States.
On Jan. the meeting to be held in
Chicago will deal probably with pas
sedger rates only. There is but little
hope for any changes in freight matters
until the complexion of affairs between
the carriers by water and the rail lines
materially alters,