The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-07-10
PERFECTLY SATISFACTORY.

The Chronicle repeats its assurance that
Hun tington has perfectly satisfactory
contract with the Panama Railroad Com
pany. The Southern Pacific organ says:
Naturally the parties concerned have
no wish to give out the fact that an agree
ment has been entered into. 1t would be
hard on the North American Navigation
Company to give out that after next May
the Pacific Mail is to resume its old rela-
tiOns with the Panama Company"
The persiStency with which the Chron-
icle adheres to report that one party to
the alleged contract has repeatedly denied
may be accounted for on the natural
assumption that capital NAV be less will
ing to go into the proposed San Joaquin
Railroad if the Panama Railroad is to be
closed against the North American NavI-
ton Company after next MAY. Capital is
proverbially timid; it might take the
chance of the San Joaquin road as a bust
ness venture if it could be assured that
merchandise could be brought to San
Francisco. as at present. until the Mic
arauga canal shall be completed. and de-
cline TO take chances under less favorable
conditions But the assertion that the
Pacific Mail and the Panama route will
resume their old relatio is absurd on its
face. The old relations were based upon
subsidy paid by the Transcontinental
Association to the Pacific Mail. The
object and for a time the effect
of that subsidy was to give the Trans
continental Association monopoly of the
transportation business between the At
lantic and Pacific coasts. But that m0nop-
oily was partially broken before the North
American Navigation Company was
formed. The clipper ship line had so
demoralizad rates that the Transconti-
mental Association declined to renew the
subsidy contract for the simple reason
that that contract could no longer enable
the transcontinental company to maintain
rates. The Cape Horn route does not
depend upon contract with any man or
set of men. 1t may not be a perfect CON-
petitive route, but it stands between this
State and any possible renewal of a con-
tract be ween the Pacific Mail and the
Panama Railroad Company based upon a
restoration of the old monopoly.
Even If the Panama Railroad Company
were willing to cast its fortunes with the
Pacific Mall it could never hope to recover
its former position. There will be compe-
titon which will keep rates at a reasonable
point. The Tehuantepec route will soon
be factor in the transportation problem
If the Panama company and the Pacific
Mail should try TO come together.
There is nothing but the say-so of paper
which has conspicuously worn the South
ern Pacific collar for many years, and
which has been more than ordinarily sub
servient to that company since its pro-
prletor has listened to the buzZing Of the
Senatorial bee, to warrant the suspicion
that the Panama Company does not pro-
pose to fulfill its contract with the North
American Navigation Company in the
letter and in the spirit. The peoples line
is the natural ally of the Panama Com
pany. There is more money for the
Panama Company under the present con-
tract than there would be under any con-
tract 1T can make with the Pacific Mail.
Rates have possibly been below a paying
point for some months. but this condition
of things Will not continue. The in
fiuences behind the North American Nav
igat;on Company do not ask it to volun
tarily fix rates below paying point The
purpose of these influences will be accom-
plisEed when the transportation business
is carried on with reasonable profit.