The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-01-15
THE WAR OA' RATES BEGUN.
Pacific Nail Is si.sshing-Teh uantepec
Railroad VIII Fig ure in the right.


If the San Francisco .ts1qalfger cor rectly de-
ecribes the present situation III regard to freight
traffic between the Esst and the Paclnc cca>I, d
war Of rates has begun which ia lIke.y soon I'd
cut them in two. The article IN question r''a0s:
The Pacific Mail is quietly cutting rae on
ehiunents from here to Eew iork IL mas re-
duce. the rate on ne from cents gai!oLl 10
8 cents and Is Offering 10 taEe beans az 10 Ton
instead of at the old rate OF $40 1t is also qu'.-
ing rate OF So ton on barley ana Is making u
cut in the rate on Canned goods, especially
Jn,t AT present there f. very little canned
goods here, and in fact very little OF any XInd
of freignt ior the New YORK MARKET, a statement
that is in q great measure borne ont by the iact
that the clipper ship Paftiit, OF o., su Ynrk 81
ballast. The interesting lact sinaius. however
that OH what freight Tor New 1ork is mere the
steansh p company j. o.diing ioT II against tue
railroads by cutting the rates.
Il has only been few days ago--sinee Janu-
AIRY last-that tee overland roads Ceased pay
ing their monthly subsidy to the Pacific Mali,
ard to all intents aud purposes Il is now iree
lance in their sides II Is understood ,nat ST..
Rice, its local general traffic manager. has IN
ktructionG 10 I'LL each steamer II ne can IiiiS
being the case, people are wondering II rates
from New York To this port viii also be cut, ana
If SO. now much and how long the steansh alp
people Will act IN dependent OF The RAILROADS.
Shipments from New \ ork 10 this port are lar
more valuable and extensive than shipments
from here Eastward. aud should the Pacific Man
MAKE greatly reduced rates on them II is real
lied by every body that II will mean big tight
between IL and the overland roads, with the
Southern Pacific as the one road mostly aHecleu
by reason of its control OF AT least So per cent
OF the ail-rai, buiness from New York TO san
Francisco via its sunset route.
The Southern Pacific prepared itself for the
Pacific Mails cuts In rates mentioned above. by
making, as published Il few days ago, %
cent rate for 100 pounds on canned goods,
beans and barley, which Is equivalent TO $40 d
ton, the former rate being 80 per ton. IL has
not made cuts shipments by rail- from New
York however and is presumably awaiting the
of the Pacific Mail IL said that If the
latter does cut rates in New York the southern
Pacific Will certainly follow SUIT, aud Mr..
stubbs is now ia New YORK watching tue drifs
OF events
The situation is said to be very unsatisfactory
20 MIR. Stubs Although his chief, Mr. Hunt
ington, is a large stakeholder In the Pacinc
Mail the Goulds control IL, and Eow, as in the
past, are not disposed To manage the company
In harmony with Mr.. Huntington railroad, I'M
less subsidized TO do 1t is generally believed
that IL would accept the recently discontinued
subsidy again. but Mr.. StubDs Is not in posi-
ton TO promise it. The overland lines that
formerly paid il are said TO be all al sea about
forming new transcontnenta association OF
any kind just at present. and even II one were to
be organized soon IL l. said that the subsIdzing
OF tho Pacific Mail would cause good deal OF
Quarreing aud opposition.
To add 10 Mr.. stubbs' di tffculties. the Pacific
Mails trouble with the Panama railroad IL still
unsettled. and Frank Johnson. OF this city. il in
New YORK negotiating with the Panama rail-
road neople TO give the North American Aavga-
ton Company the exclusive, or at least an equal,
privilege With the Pacific Mail on New York
and san Francisco business Private dispatches
this week from New York state that Johnson
and President Newtoa, OF the Panama railroad
have drafted a contract, and J0hnson's friends
in this city believe he Is making encouraging
progress.
ii that is true and ii events prove that the
local steamship limo Is TO start out or
compete as an equal With the Pacific Mall on
New York and san Francisco business many Of
the merchants here believe that rates TO and
from the Atlantic sesboard Will come down for
good. al the railroads must submit on that
business TO whatever rates are made by the new
This latter fact, in case of Mr Johnson's sue
cesa, Is admitted by Mr.. Stubbs' associates IN
this CITY They VIII not believe, however. that
Mr.. Johnson's negotiations VIII be successful.
They maintain that the Panama railroad will
never part COMPANY with the Pacific Mail, and
will come To understanding with IL before
stuDbs returns from New YORK. They do not
advance any particular reasons for this belief on
their part. but ATE very dogmatic III making
their assertions on that point
The officials OF she Traffic Association are not
veyy confident themselve, OF Nj. johnson's sue
cess. but are hoping that he Will make some IA
vorable deal with President Newton. Shou a he
fail. however, and should Mr.. Stubs by hook
or crock subsidize the Phclnc Mail they do not
zee how that arTaugem sut can continue the
opentTe OF tde IehRuuterec railroad IN either
eight or uiue months from now. Besides the
latter constituting a shorter route between New
York and San Francisco, they say II can aud
viii be operated prohtab.y AZ one-halt the rates
now in force on the Panama railroad, notwIth.
standing the fact that the latter IL only thirty
miles long ana the former $50 miles. When
it is completed and opened, the proposes
policy Of fTcsi ieat Niaz Of Mexico, Of
making Il IA free transfer route To- all s.ram ~ =
lines. Viii, in their optulon, end Tor good Mr..
HuDpnCtOa's cictatiC9 oi rates between here
and the cities on the Atlantic coast
one of Mr.. Huntington officials. III spea ii ng
about the feAuautepec ralroa j, sad yesterday
that would certai My be an important factor IA
uecid NJ rates between ocean ana ocean and
might establish ;he supremacy OF steamer rates
He thought however, Il MAS borrowing trouble
from the future 90 discuss That proposition
when enough trouble was Al hand liz the matter
al the present uuietterod rate policy OF ths
Pacific Mail