The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1893-03-01
IT WAS ALL FOR MONEY
The Pacific Hail Company's Compact
With the Plnaml Railway.
TO FLEECE THE SHIPPERS

sruU0nBo oO"v OF WoVoy Va'U tVO
Steamship Company by
tho Transcontinentai
Railroads.
WASHINGTON, Fob. 2s.-J. b. Houston,
vice president of the Pacific Mail Steam
ama-Pacific Mail investigation committee
today, with reference to the affairs Of the
Pacific Mail. He said bcforc Feb. I,
1883. when the contract between the
Pacific Mail and the Panama railruad ex-
pired. officers Of the Pacific Mail went to
the Panama cotnpany's officers TO make q
new contract. Their purpose. the witness
indicated. was frustrated by threat Of
the Transcontincntal association TO cut
on the amount monthly paid the Pacific
Mail. The United States company could
not guarantee $4,000 monthly to the Pan.
anna railroad. which declined TO negotiate
further. and stopped the through bills Of
lading Of the Pacific Mail. The witness
lad discovered tho Panama railroad ad.
vertising In English papers for English
freight and English ships to run between
New York and Aspinwall.
The reason assigned by tho Panama
company for its action was that the steam
ship company would not guarantee II the
old amount Of money per month. Tho
Panama company wanted guarantee Of
Si00JO per month and q restriction as TO
the amount Of freight To be carried, which
would prevent competition with tho trans
continental railroads. Another ,ime thcy
insisted on the right tn make rates. The
Pacific Mail offered to 60 in ana take all
freight II could carry Mt minimum rate
60 be established between the two COM
panies.
Geary asked the witness how be recon-
ciled the agreement BY which tho railroads
were allowed TO fix rates over the steam-
ship route with tho governments policy Of
aiding the company. In order to develop
commerce. Houston replied: "By con-
tinuance Of stable rates"
The contract resulted in cheap rates.
The witness did not believe the steamship
company could compete with tho rail-
roads on any class Of freight business be-
tween Now York and San Francisco IL II
was not for local Central and South
American business. Gcary inquired why
then had the Trauscontinental associa-
tion paid the Pacific Mail company s1O.-
month for the right TO flx its rates IL IL
could not compete. The witness replied.
the disooDtiuuance Of tho agreement
wo,,id nat Lnye occurred n n was proflt.
S6ic 10 the railroads, "I don't think We
can transnor, pxnds from New York 10
San Erancisco cheaper than the rail.
roods,n
Geary-Then the building Of canals will
not give better rates?
witness-Ah. that will be a good thing
for both coasts and especially for the
steamship companies. Now tho Panama
railroad must bc paid . large rate.
Houston SAID the Pacific Mail company
received . subsidy OF 1900 trip from,
New York to Aspinwall, aud $2,5OO Tor the
west coast trip.
Geary-Doyou think yourselves justified
In accepting money which 10 paid Tor tho
Development OF commerce when you arc
In transcontinental comoinationT
Houston-i don't think u has ANYTHING
to do with II. Tho Increased service en-.
tailed on us has been 80 oncrous, that
would be perfectly willing u the postmas-
ter general would cancel our bond and
give up the contract. Yes, ] do think the
net tended to increase trade. but IL has
been ut our expense. There Is very de-
cidesl increase In trade between San Fran
cisco and Central and South American
coasts as result OF the contract. For In
stance. the German line formerly carried
5000 bags OF coffee year. Lnst year II
carried only 33.Oo bags. ANA an increase
came to the Pacific Mail company, which
secured the business.
In answer to further questions. Houston
said the Transcontincn,al association
! rrolably had made the arrangement Will
the Pacific Mail company partly for ths
purpose of preventing competition.
pa~,,r, I,,,c,,,,cb. dircc,or npd a,,,r
r.v sor tho Pacific Mail. told OF the EFFORT,
,n.as .,ncc ,he h,..k bc,wecp tho pnnnm,
Raii~sw counonv npd tho Pacific Mai
.o,,,n.rv ,o have fr;ondlv relations con
s;,,,sSI .I ,nynke,, I'm, aid of Mr.. Cr,cc
hn mid sand ,Ioro 4. whero mn, ms foo
In it.w IIc added. narra,iny the fact tina
Grace was interested i'm what Is commonl,
known ns tho Cbilinn Steamship com
r,cv and ,b, cop,popy sought 10 sccur,
sr.s,., from panama north 10 Acnpu,co
vhicb tho p,ciilc mail company Ind maid
snr. h.d huii, nm. and was ius, bripu,n,
i.ss, ,,,,,,,,,.;.u .,,i,,,y rpdcr tho rcr,nr,c