The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-02-24
PANAMA AND PACIFICNAIL.
Investigation Resumed By the
Congressional Committee.
LEEDS TELLS Ills STORY.
A Compact Existed Between the Rail.
roads and Pacific Mail.
The Latter Received subsidy from the
Trans-COntlnental AssOciation-Ex
Orbitant Rates Charged
in California.

WASHINGTON, Feb. 23.-The Panama
Pacific Mail investigation was resumed
today, and the Pacific Mail end was taken
up. Leeds, formerly traffic manager OF
the Gould roads, now a representative of
the Merchants Traffic association in Cal
lfornia, which proposes to put on a line
OF steamers in opposition to the Pacific
Mail, testified that there had been a com
pact between the trans-continental rail-
roads and the Pacific Mail. The railroads
paid the Pacific Mail a subsidy and re-
served the right to say what classes of
freight the steamships should carry and
liked the rates to be charged. The
management of the Pacific Mail was alb
solutely in the hands of the Trans-conti-
mental association so far as rates and bus-
mess were concerned.
His recollection was that the only right
the steamship company reserved was that
1t should deal directly with the public
after the rates were fixed. The effect OF
this agreement was to keep up freight
rates on the merchandise going around
Cape Horn by clipper ships. 1t was to
some extent true that merchants in the
interior were compelled to see their
freight go clear through to the coast from
the east, paying the through rate, and
then have it shipped back to them at high
local rates, instead of having the freight
delivered on the through train
Witness did not think the Panama rail-
road ought to be made free to all, and all
agreements stopped. He would not recon-
mend to his company to go into tire
scheme at all without the Panama rail-
road agreement The object of the Trans
continental association had been to de-
stroy competition between the seal oar
IN order that the railroads might Charge
higher rates.
In pursuance of this policy the associa-
ton paid the Pacific Mail company So
GOO month in consideration OF the steam
ship company allowing the railroads to
nix the freight rates, and the Pacific Mail
paid the Panama railroad $50, 0OO month
for exclusive transportation rights over
that railroad.
Leeds said he had made calculations of
the burdens paid by the people of Cali
fornla for transportation within the state
only. The gross annual earnings of the
Southern Pacific Railway company alone
in tho state OF California amounted to
$40, 600, 900, or $50 per head of population.
Freight rates in California should be de-
creased % per cent. or 81, SOC, 600 annually.
CNCA INC OOuGhSI1 Z dC1HC, LOT carrying
freight from San Francisco to Fresno, 200
miles, 20 cents per 100 pounds is charged,
which would carly the same freight from
New York to Wichita, Kan. No, other
country than California could stand such
rates.
f. L. Oppenheim, secretary, treasurer
and director OF the Panama Railway COM
pany, was examined. He said the reason
the Panama Railway company did not re-
new its contract with the Pacific Mail
company was because the railway COM
pany wished to gain its independence.
He further said in negotiations for new
contract with the Pacific Mail his COM
pany insisted on making the rates but
non-renewal was the result of the action
of G. P. Huntington in the matter.
General John Newton, president of the
company, corroborated the testimony Of
Oppenheim and the committee adjourned.