The morning call., 1893-09-20
1T THROWS 1T UP.
Huntington's Line and
the Mail Contract.
WITH THIS MONTH 1T ENDS.
The Pacific rlaii Is Let Down Easily
by r1r. BiSselI at Its Own
Request.

cifc Mail Steamship Company to carry the
United States mails between this city and
Panama will cease, an6 a peculiar thing
about it is that the contract is annulled at
the request of the Pacific Mail Steamship
Company itself.
The following is copy of letter, under
date OF September IA. received from n. NJ.
Brooks, the superintendent of foreign
mails. by Postmaster Backus yesterday:
SIR: have to inform you that at the request
OF the contractor the Postmas Ter General has
to-day made an order directing that the con-
tract between the department and the Pacific
Mail Steamship COMPANY. for mail service on
route A, o. NJ. S.. from San Francisco 10 Pan
ANA and intermediate points. be annulled on
and after the 30th inst. l am. very respect
fully, your obedient servant.
n. NJ. BROOKS,
Superintendent of Foreign Mails.
There are several reasons for this
sudden action on the part of the Pacific
Mail. says an undoubtedly good author
ity-reasOns, of course, that are given
more BY way OF surmising than anything
else. One of these reasons is the fear the
company has of Congress exposing the
double game it played with the TranScon-
tiuental Association and the Government;
another is The desire of the company 10
take one of its three ships off the Panama
run; third is its wish 10 avoid having TO
stop at San Diego. and slill another is
found in the pTosI ect of liberty OF action
ills steamers would enjoy II unhampered
by mall obligations. No doubt each of
these reasons had its own peculiar weight.
AS TO the first: 1t is notorious fact
that the Pacific Mail Company was bound
by an agreement with the TranscUnti-
mental Association to limit the amount
OF reight carried by the steamers at he
same time it was being subsidized by
the Government tU promote commerce.
From the Transcontinental il was recelv-
ing $4,000 per month for keeping the
amount of freight carried between this
city and Panama and between ASplnwdll
and New York down to 600 tons per
steamer; and from the Govern nment it was
getting a mail subsidy TO encourage 1t IN
the carrying of freight.
The Government was eager to see a
rOtitable commercial route by sea be-
tween this city and New \ oTk via Panama
established. but the Transcontlneuia AS
sociatiOn realized that To keep all the
business overland was TO its own particu-
lar profit. AS the personnel of the people
interested in the Pacific Mail was not
much dlssmllar from that OF the Southern
Pacific aud also the Central Pacific IL was
quite natural that the interests of the
rranscOntlneuta Association would be
served by the steamship company.
the agreement between them was in the
nature OF a conditioned guaranty. The
Pacific Mail was limited 10 900 tons of
freight per steamer, and the freight busi-
ness was deducted from the amount guar
anteed. In case lis steamers carried less
the guaranty would make up for the de-
ticiency. Under such an arrangement
there was no incentive 10 load up with
freight, and cOastwise traffic suffered in
consequence.
The mail contract was under the act of
March, 1851. Ships of the ocean mali
service were divided into classes Vessels
of the first class had TO have speed 0f
20 knots and burden of 5000 tons; those
of the second class, IS knots and 5000 tons,
aud those OF the third class, IA knots and
$500 tons. The cOntracl price was by the
mile per annum. Vessels of the first class
were to receive about 81 per mile, those of
the second class about 81, and those OF the
third 81. There are no hrst-class vessels
on the coast, and only one second class,
the City of Peking
The contract required the Pacific Mail TO
run three steamers monthly and to stOu al
San Diego. These obligations have always
beer irksOme TO the company. 1t did not
do business enough to jus ifv three trips
per month, aud to 60 to San Diego was TO
go very much out of the way. And then
il was under an agreement with the Pacific
Coast Steamship Company not to do any
freight business at San Diego.
Respecting the last reason surmised the
company found itself under the necessity
of making stops at every one of the seven
teen ports along the Central American and
Mexican coasts. whether there was bus'-
ness or not. Now that its steamers will
not have to stop for mail such ports can be
passed by unless there is business enough
to warrant pulling in and landing. Maz-
allan and other ports on the Gulf of Cali
fornia will probably be avoided altogether
1t is easy TO divine that the explanation
which Coils p. Huntington would give
were he here would be simply that the
mail contract did not pay, and besides
loaded the concern with too many un-
profitable requirements.
But the first reason enumerated In the
foregoing is probably the chief one. Con-
gTess being Democratic and eager to pnpu-
lariZe the administration was, doubtless.
contemplating taking Snme action that
would place the Pacific Mail in very
undesirable light. and to prevent the un-
pleasant expose which was dreaded re-
course was had TO q surrender Of the con-
tract.
in this connection a question arises:
Can the Postma ter General annul q con-
tract to which Congress is party without
first receiving some positive authorization
from that body?
President w. L. Merry of the North
American Navigation Company said last
night that the abrupt ending of the con-
tract was news to him.
al am sorry" he observed, "for the sake
of San Francisco. l think it will hurt this
city considerably"
Asked if he had made a proposition to
carry tie mails, he said he had not.
The Governments of San Salvador and
Guatemala have contracted with US to
carry their mails, and the Governments of
Mexico and Mic ragua are going TO, but"
he explained there are no subsidies in
those arrangements. We are simply given
free entry into their ports"
Ca tain Merry also explained that not
wIthstanding an American vessel may not
be bound bt any contract to carry the
mails, 1t could not refuse to carry them
under the law were POstmast Backus to
offer a few sacks of letters and papers
In such case, however. sea postage
would be collected.