The San Francisco call., 1895-12-31
ARE ALERT.
Keen Interest Taken in the
Through-Freight Sit.
uatiOn.
PREPARED FOR BATTLE.
Clippers Around the Horn May
Be Used as a Brake on
Huntington.
PREPARED FOR BATTLE.
VIEWS ON THE PANAMA DEAL.
Unanimously Thought That 1t Signifies
an advance in TranSconti.
mental Rates.

There is apparently but one opinion
among the merchants Of San Francisco re-
garding the Panama-Pacific Mail compact,
and that is that freights are destined to go
higher and at no distant day. They have
too high an appreciation of the astuteness
of c. p. Huntington to come to any other
conclusion. particularly in view of recent
developments in connection with the
through h-freight situation as published ex-
| clusively in THE CALL of Saturday and of
Monday.
But the threatened advance in rates,
while for the time being unsettling busi-
ness more or less owing to the uncertainty
as to what is coming, causes no serious ap-
prehension among the importers. for they
believe they hold the key to the situation
in the existence and power of the Traffic
Association. Should freights be advanced
to degree that is considered excessive
means will be utilized to organize a COM
peting line that will have the same effect
as had the North American Navigation
Company and it's successor, the Panama
Steamship Company.
Among the objects said to be the aim of
Mr.. Huntington in patching up the differ
ences between the Pacific Mail Steamship
Company and the Panama Railroad Com
pany is the reformation of the Transcon-
tinental Association. On this subject j..
G. Stubbs, the general traffic manager of
the Southern Pacific Company, said yes
terday:
No attempt has been made to get the steamer
and railroad lines together, but we may get to-
gether to bring up some of the lowest rates.
No movement, however, has been contem-
plated which would revive the old Transconti-
mental Association. 1t has not even been sug-
gested.
One of the high officials of the Southern
Pacific Company disclaimed any intent on
the part of the company to make general
advance in rates as result OF the Panama
Pacific Mail deal. He asserts that the
situation was not properly comprehended
by the general public. There has never
been, he said, any attempt on the part of
the railroad to force the Panama people
| out of business, but the isthmus line had
assailed the railroad property of Mr..
Huntington for the simple purpose of
| compelling him to make an agree ment
| with them and on terms that would be ad-
vantageous to the Panama people. This
! object has now been accomplished, and
| that is all there to the matter" /" he con-
| cluded
Interviews were had yesterday with
mem bers of q number of the heaviest i'm
| porting firms of this City on the through
| freight situation and the bearing thereon,
and are given herewith
| B. F. Dunham OF the Dunham, Carrigan &
| Hayden Co., and president OF the Traffic Asso-
| cation-It certainly looks as II trelghts will be
advanced but hope that those parties will
| look at it in the right light and not advance
| them to too high figure. Ii they DO, they
will certainly get competition again | un-
! doubtedly believe that the combination be-
| tween the Pacific Mail and the Panama people
| was made for the express purpose of advancing
| rates Should they go too far we can again
| raise money enough TO establish q competing
| line. l may add that the Traffic Association
| has been considering the matter of future
t rates. 1t is not probable that a competing
| steamship line will be proposed, as 1t is impos-
| sible to cross the isthmus except over the
| Panama Railroad. The ocean is still left open
! for traffic if freight rates get too high, and any
| action taken will be in the direction indicated.
| W. B. Curtis, traffic manager of the Traffic
my mind that the Pacific Mail Company de-
| sired to come to an understanding with the
| Panama Railroad in order that overland rail-
road rates might be advanced. Now that an
| agreement has been reached, it only remains
| to learn the conditions of that agreement be-
! fore passing conclusive judgment as to what it
| actually signifies.
| The Panama people here have all along as
| serted that they would not surrender their
rights and privileges in the case, but that they
! should retain the rate-making power. If this
|
or, it may be said, a safety valve-to the situa-
| ton, since in my Judgment the Southern Pa
! ciic or any other company would find it i'm
possible in the future to secure for water
| line subsidy such as was paid to the Pacific
| Mail in the past.
| Railroad transportation has assumed new
| phases within the past few years in the shape
| OF competition on the part of the Great North
ern and the Canadian Pacific railroads. The
/ Southern Pacific itself has added a new feature
| to the transcontinental squabble in that it
1 fox cfQ md hat hot fl,n 40
| Coast and New York should be the minimum
| in other words, that Chicago is not entitled to
lower rates than the Atlantic seaboard. In my
judgment this particular stand is going to be q
! greater stumbling-block in the way of estab-
| fishing amicabie relations than any difference
! which may exist between the Great Northern
! and the Canadian Pacific on one side and the
| Southern lines on the other. The great Iowa
] lines will not be content to see Chicago rele-
| gated to this position.
| The Traffic Association, therefore, is content
| to await developments before deciding on any
definite action. In the meantime the clipper
| ships of the Cape Horn route are in the field
for business, and if the efforts OF the Traffic
Association will avail anything, will remain q
permanent factor in the transcontinental
| transportation problem.
| w. K. Wheeler OF Holbrook. Merrill & Stet-
| son-I have no doubt that the sole purpose of
! that contract made by the Pacific Mail with
| the Panama Company is the first step in an en-
deavor to bring about the reorganization of
/ the Transcontinental Association, and thereby
az ahcC iateS. 1 w uot looh, Ao"SNei, ioI dii
advance TO the figures in vogue before the dis
! rupti0n of the Transcontinental Association,
Tor the reason that the railroads have been
| taught lesson by means OF the Traffic Associ-
alton which has cost them dearly, and which
! they are otlikely soon 10 forget.
| Should rates be advanced beyond reasona-
BILE figure by the railroads and the Panama
| route IL is within the power of the Traffic Asso-
! citation to again bring about the establishment
| OF competing line of clipper ships, which
was the entering wedge IN disrupting the
| whole Transcentinental Association. No one
knows this better than the railroads themselves
] b.. NJ. Heller of Heller, Bachman & Col
| don't see how we can break up the combination
unless we ship around the Horn. We should run
very satisfactorily before when rates were toe
high. There isin question but the latest de.
| velopment-the congestion OF freight at New