The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-02-24
AS TOLD BY LEEDS
The Burdens Borne by
California.
POSSIBLE NOWHERE ELSE.
Not Another State in the Union Gould
Have Thriven Under Such On
erous Railway ExaCtions.
Special to TIE MORNING CALL

WASHINGTON, Feb. 23-The Pacific Mail
Investigating Committee to-day took up
that part Of the query respecting the Pacific
Mali and its treatment Of California ship
psrs. Mr.. Leeds Of the Merchants Traffic
Association OF California. General Newton,
president of the Panama Railroad, aud f. l..
Oppenheim, It's secretary and treasurer and
q director. testified. The former gave a
plain statement Of facts. There WAS not
much in it that would be new to California,
but he succeeded in giving the committee a
thorough understanding of matters affect
ing transportation in that State He told
how the Pacific Mail management
had been absolutely under the con-
troll of the Transcontinental Asso-
citation up to December last. The Pacific
Mail had received S75, 600 monthly as Gov
ernment subsidy, and had paid the Panama
road SIS, 900 per month for handling its
freight across the isthmus. The transc0n-
tinental roads dictated TO the Pacific Mail
what freights should be carried. and fixed
the rates, and the effect was to keep up
freight rates on sl0w-goInG merchandise
around Cape Horn By clipper ships. The
agreement between them was verbal, and
not in writing. The witness said. in answer
70 the question, that the merchants in the
Interior were often compelled to have their
freight from the East go to the coast at
through rates and then have itshipped back
at high local rates.
In answer to Geary's question, "What
guarantee can the North American Naviga-
tion Company give that 1t would not suTren-
der also to the transcoutinental roads and
cease to be cOmpettor?" Leeds said. Self
interest would prevent this, as there would
be no Incentive to do it,"
Leeds said that the gross earnings Of the
Southern Pacific In California were 30,000,-
600 annually OF $50 per head for every Cali
forniau. The freight rate in California
should be decreased % per cent O. 81, 500. 600
annually over the Southern Pacific. The
same rate was charged from San Francisco
tn Fresno as from New York to Wichita.
Kans. No other State than California could
stand such treatment.
ODpenheim testified that the Panama road
wished TO be independent of the Pacific
Mail and Transeon tinental Association, and
bad made contract with the North Amer
lean Company. During the fifteen years of
the contract with the Pacific Mail the in
come had decreased from $4,000 to $50, 600
monthly. With tonnage of from 60, 900 to
$4,000 per year, his company could transport
freight from New York TO San Francisco
via sthmus for Sl4 TO SIS, and eastbouud at
$40 The nOn-reneWal of the contract with
the Pacific Mail was due to C. P. Hunting
ton.
Geary asked: Would Huntington do
anything to injare American commerce."
Oppenheim replied rather dublously:
Il don't know" but his look was sign fcant
TO the committee. who understood from 1t
Oppenheim's real opinion concerning the
railway magnRte.
General John Newton, president of the
company, said that during the past year a
consultation was held between the officers
and the members of the board of the Pana-
ma Company and the officers OF the Pacific
Mail Company with a view to renewing
their contract. a contract was nearly ex-
ecuted. but the Pacific Mail Company de-
cined to sign it because the Trausconti-
mental Association had failed to agree to
give it a subsidy. Upon the Pacific Mail
Company being asked for a guarantee Of
good faith to protect the Panama Company
from the interference OF the transconti-
mental roads hitch occurred. Huntington
refused to approve of an agreement
in that shape, and matters were de-
layed from day to day at Mr..
HuntingtOn's instance in the hope Of
chance Of some sort. General Newton said
that something like 80. 500 shares of stock of
the company were recorded in the names of
private individuals. Continuing, he said
that he had never received instructions
from he French directors in regard 10 re-
newing the contracts, and he had always
been free in making such negotiations. II
the Pacific Mail Company had agreed upon
further contract the Panama Company
would not now be negotiating with another
steamship company.
10 conclusion General Newton said that
be received $4,000 a year compensation
RS president. He devoted his whole time
TO the work Of the company.
Alfred Reeces, general superintendent os
the Panama Railroad, was next examined
IN regard 10 the nationality of the employees
Of the road. He said that when business
was at It's height the road employed about
1900 men, but now it was reduced to be-
tween 600 and 700. The mechanics were ali
Americans, and the laborers consisted
mostly OF negroes. There were very few
Frenchmen employed On the road. He
knew Of no discrimination against Ameri-
can ships, but on the contrary the company
showed a willingness to keep on the right
side Of Americans.
The committee then adjourned until TO-
morrow.