The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-03-01

tho agreement by which the railroads
were allowed to fix rates over . steamship
route with the governments policy Of aid
ing the company in order to develop
commerce. Houston said by the con.
tinuance of stable rates. The contract
resulted In cheap rates. Witness did not
believe the steamship company could com
pete with railroads on any class of freight
business between New York and San Fran
cisco, if it was not for local, Central and
South American business.
Geary inquired why the Transconti-
mental Association had paid the Pacific
Mail Company $4,000 month for the
right to fix its rate if it could not COM
pete?
Witness said:
The discontinuancs Of the agreement would
not have occurred n 1t had been profitable %
the railroads. don't think we can transport
goods from New York to San Francisco cheaper
than the railroads
Geary-Then the building Of canal will not
give better rate?
witness-Ah, that will Be . good thing for
both coasts, and especially for the steamship
companies. Tho Panama railroad must DO paid
. large rate. The Pacific Mail company has re-
eeived Q subsidy of 5000 . trip from New
coast trip.
Geary-Do You think yourselves justified in
accepting money which was paid for the dssel.
opment of commerce when you are in . trane-
continental combination?
Houston-I don't think IL has anything TO do
with it. The increased service entafled ON us
has been SO onerous that would be perfectly
willing, If the postmaster general would cancel
our bond, to give up the contract Yes,
i do not think tho taOnof inCp0nnA the
trade between San Francisco and Central and
South American coasts, as o result OF that con.
tract For instance, the German line formerly
carried s.. 900 bags of coffee Q year. Last year
they carried only 5000 bags and the increase
came to the Pacific Mail Company, which &C.
cured the business
In answer to further questions. Houston
said the Transcontinental Association had
probably made an arrangement with the
Pacific Mail Company. partly for the pur-
pose OF preventing competition.
Edward Lauterbach, director of and
attorney for the Pacific Mail Company,
told Of the efforts made since the break be-
tween the Panama company and the Pa
cifc Mail Company to have the recent re-
lations continued, saying:
Invoked the aid of Mr.. Grace. and there 10
where put my foot in it Grace 10 interested
In what 10 commonly known as the Chilean
Steamship Company, and that company had
sought to secure trade from Panama north to
Acapulco. which the Pacific Mail Company had
paid for, had built up and WAS just bring
ing into promising activity under reciprocity
treaties. Tha, attempt was checked by the New
York courts in granting an Injunction. The
Panama railroad has passed under French con-
trol. and it 10 q question for consideration
whether such a railroad. at important
strategic points, should be allowed to con-
tinue for the corporation. The arrangement be-
tween the Panama Railroad Company, the Trans
continental Association and the Pacific Nail was
beneficial to the people OF California There
formerly had been war between the steamship
company and the railroads in which the mer-
chants of California agreed to stand by the
water carriers. The roads gave rebates to mer-
chants and all but two firms deserted the steam
ship companies. The Pacific Mail did not get
much business, the railroads lost money and
the merchants did not fare well, for the rates
were unstable and uncertain.
Drake, a member Of the executive board
Of the Panama Railroad Company. said
the shippers had been led to believe the
service by the Isthmus . forty-days serv-
ice, whereas it should be twenty-five to
thirty-days service. against fifteen or eight
cen days by the railroads. The object of a
subsidy to the Pacific Mail by the Trans
continental Association was to eliminate
the Pacific Mail as factor in the trans
portation business; having accomplished
this the subsidy was now Withdrawn.
This closed the hearing.
SAN Francisco. Feb. 23.--The North
American Navigation Company has char
tered the steamer st. Paul, which will sail
from this port on March 8, connecting at
the Isthmus of Panama with the steamer
San Marcos, of the New Columbian line,
which sails from New York on March Is.
The st. Paul will be followed by other
steamers at intervals of two weeks