The morning call., 1893-04-18
HOPE FOR TRADE.
The Steamer St. Paul to
Be Rechartered.
SITUATION IN THE SOUTH.
The KoSnOs and Hamburg American
Lines Will Not Assist the
Pacific Mail.

racine Mall Steamship Company were dis
eussed pro and con at the meeting OF the
board OF directors of the North American
Navigation Company yesterday afternoon.
The entire board was present and a great
deal OF routine business was shelved.
The most important and unlocked for
step taken was the decision to recharter the
steamer ST. Paul and to send her back to
Panama in ten days from the time she
reaches this city. The cause of this sudden
conclusion is said to be that there are no
available vessels to be chartered, and the de-
mands of shippers force the company to
begin loading another steamer without de-
lay.
From the present outlook there appears to
be an excellent opportunity for San Fran
cisco merchants 10 extend their trade in
South America. Captain Tallant of the
Hamburg American line states that no
agreement can be made between either the
kosmos line or his company with the Pacific
Mail as neither of these lines do any buSl-
ness with that company.
lie trade Of South America" he said,
us IN the hands of the German, French and
English The reason for this is the ruinous
rates maintained by the Pacific Mail and
the Chilean Navigation Company's steamers.
During the month of September last
there we're six big steamer-lOads of goods
sent to Valparaiso from Germany alone.
lhere were twenty-five arrivals during
the last six days of the month. only one of
which was from an American port"
ln speaking oil trade with South America,
Frank johnson of the North American line
stated that the prospects were good for
revival Of our tagging traffic with the south
under the reign of his corporation.
Mr.. johnson does not care 10 state what
arrangements the new company Is perfect
Ing with the Peruvian and Chilean
steamers, but as the Keweenaw took down
several hundred tons of freight for Cailao,
there must be some good, cheap way of
getting it through.
Goods for Calao do not necessarily
mean merchandise for Peru exclusively
Callao is point of transfer, and the Kos
mos line people pick up great deal of staff
for Chile there.
American agricultural implements and
mining machinery have an extensive mar
ket In Spanish A mericau countries. but
other goods manufactured in the United
States are almost shut out Unjust discrimi-
natioH has practically killed our South
American trade. and only the unanimous
support OF the North American Navigation
Companyiand the clipper lines of sailing
vessels will wrest it from foreign COM
petition.
-. ApropOs of sailing vessels, the clipper
line oil Grac. q Co. is steadily increasing its
traffic. Two vessels are loading at New
York, while the ship Allen has started for
San Francisco with a valuable cargo Of
assorted merchandise.
In South America, if importers cannot
have the advantage Of low freight rates, it
Is impossible for them to handle American
goods. The European can undersell the
American about % per cent. This differ
ence In values must be made up for by
cheap transportation, and should be, for
Europe is nearly three times the distance
from Valparaiso and Caliao that San Fran
cisco H.
Once this has been accomplished, Ameri-
can goods can then compete with the foreign
manufactures on an even basis and will
eventually control the market, as our ex-
pOrtations are superior i'll many cases to the
foreign article.
In speaking Of his firms experience with
the Pacific Mail Company, Frederick Otis
Of the firm Of OTIS, McAlllster & Co. said
yesterday that his company was obliged TO
Withdraw their two steamers from the Cen
tral American trade on account of the Mali
company making standard rate of So per
ton on all classes of goods.
The monopoly was charging rs high as
SIS per ton prior to the time that the new
hTm engaged In the steamship business
First cut of 25 per cent was made by the
Pacific Mail. then 80 per cent, and finally
the So rate was announced
OTIS, McAllster & Co. did not feel that
they were in duty bound to sacrifice their
private capital for the benefit of the shin
ping interests of San Francisco, SO with.
drew their vessels.
The withdrawal took about 500, 900 worth
Of trade year away from this port.
The North American Navigation Com
pany has the proper backing and will prob
ably pull through all right" said Mr.. OTIS.
Il think, however, they will have a hard
fight since the Southern Pacific has entered
the arena.
"The new line has one decided advantage
over our recent enterprise; that is having
secured The Panama Railroad contract.
which gives them such a prestige on
through rates that they can afford To take
merchandise for Central America for yery
small remuneration"
Ten years ago the trade of.thls port with
Central America was nearly double what il
IS now The sulling vessels did most Of the
carrying.
American ships have gradually gone out
OF the business since the active foreigners
established their line OF steamers.
splendid opportunity is opened for
American capital in the establishment of
llne Oh hrst-claSS steamers on the South
American coast, starting from Panama.
The Chilean Navigation Company. it ia
SAID, pays dividend amounting to nearly
10 per cent per year on the capital stock of
the company, which IS owned and con-
trolled principally by Englishmen.
The secretary of the North American
Navigation Company did not think it policy
to talk OF the private business transacted
by the directors yesterday, as the company
desires to be very reserved with its news
for publication.
MIR. johnson and other members of tbe
board are we'll satisfied with the present
outlook, and think our trade with sister
republics is destined to be a matter of great
Importance to the business community of
San francisco In the good times to come.