The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-01-19
THE ISTHMUS FREE
Valuable Concession to the
Steamer Line.
EXCLUSIVE RATES ASSURED.
The Pacific Mail Subsidy NeutraliZed
by the Advantages Gained by
the New Company.

There Is no longer any doubt OF the
speedy Inauguration of the new competing
line to New York by way OF the lstnmus.
you can say" said Secretary &. "a. Has
we'll Jr. of the Johnson-Locke Mercantile
Company yesterday, "that the North Amer
lean Steamship Company has completed all
the arrangements for its steamers on both
sides of the isthmus. That is TO say, the
steamers have been secured"
Mr.. Haswell continued that he had just
received telegram from Frank S. johnson.
In New York. confirming the dispatch re-
ceived by Mr.. Locke on the previous even
ing as to the establishment OF an arrange
ment by which exclusive privileges have
been assured to the new company by the
Panama Railroad.
The contract Is in Mr.. Johnson's pos
session. and 10000 out of the 100000 asked
as guaranty by the Panama Railroad Com
has already baen raised in this city.
The matter was specially and fav0rably
considered at meeting of the Traffic Asso.
citation held yesterday afternoon.
The most important feature in the con-
tract between Mr.. johnson and the Panama
Railroad was an agreement securing to the
North American Company exclusively
through bills of lading between New York
and this port. thus dispensing with the local
rates which the Pacific Mail will have to
pay to the Panama Railroad Company.
The existing contract between the Panama
road and the Pacific Mail Steamship Com
pany expires on February /. Had the new
line started without some such guaranty
in the way Of exclusive privileges or rates
as has been secured IL would have been ham
dicaDped in the contest by the subsidy re-
eeved by the Pacific Mail from the trans
continental railroads, and especially from
the Southern Pacific. But the concession
referred to as made by the Panama Railroad
will enable the new company to meet every
cut which the Pacific Mail may make, and
tile war OF rates, II 1t comes, Will be merry
one all along the line. There will be. at all
events, no fear Of the Pacific Mail crowding
out the new line and then Te-establishing
the old regime with greater rgor than ever.
The new line may be able To begin opera
tons ON or before March l. Provision has
already been made for bills of lading for
fuel supply and water. Proper precautions
are being adopted to prevent any of the
new cOmpany's stock from falling into the
hands of the allies Of the overland roads or
the Pacific Mail
1t Is not doubted for a moment that the
Pacific Mail aud allied lines will fight the
exclusive rate proposition bitterly; but IL
is stated that the moves made In France to
put the Panama Railroad in the hands OF a
receiver have been checkmated. and that
the contract made by Mr.. johnson with the
railroad Is undoubtedly good for ten years.
There were fourteen propositions in the
memorandum submitted by Mr.. Johnson to
the Panama Railroad as necessary for the
success Of the y oTth American COmpany's
enterprise, and il seems TO be placed beyond
question or dispute that all these PROPOSE
tons have been acceded to.