The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1895-09-27
Oceanic Company Planning Great
improvements in It's Sarviee.
iSK FoK GovER>MENr SUBSIDY.
Trade Seriously Impaired by Puget
Sound COnnections-Sprecke Nay
Invade the Northern Country for
Business-MaiIage Guarantee, Etc.

According to late advices from the
Coast, the Oceanic Steamship Com
pany has, with the exception of some
relatively minor details, completed
plans which involve the construction
of new, larger and faster steamers to
take the place of the MaripOsa, Ala
media and Monowai, now running be-
tween San Francisco and Sydney,
Australia, touching at Honolulu and
Auckland.
The company has long recognized
that the development of its business
and the attractions OF its route deserve
facilities superior to those now in use,
and this conclusion is in no small
measure emphasized by the inroads
made in the company's business by
the steamship lines running from
northern Pacific Coast points.
The Oceanic Company has, as a
part of its new improvement of the
service, completed arrangements for
asking the next Congress to grant the
company a mail subsidy. The COM
pany now receives subsidy from the
Colonial Government of New Zealand,
under a contract that runs from year
to year. From the United States gov
ernment the company receives COM
pensation according to the amount of
postage on the mail carried. The
company could take advantage of the
statutory contract of 81 ton per mile,
but it declines to do so, because the
comparatively small increase it would
thus receive would not compensate it
for the results incident to such q con-
tract under various provisions of the
statute; as, for example, the sailing
date would, in greater or less degree,
be under the control of the pOstOff1ce
department. Under certain cOnting-
encies sailing dates may be delayed by
that department.; because of official
necessities, for a week. Whatever
advantages attend these privileges the
government loses under its present
contract with the company.
The New Zealand government has
for a number of years complained to
the United States government that
that colony was bearing the greater
part of the burden in the maintenance
of mail carriage and is enjoying less
benefit. It has been, from year to
year, renewing its subsidy, because |
the Oceanic Company occupied the |
shortest route. The Oceanic Com |
pany's interests are harmonious with |
and supported by the Union Steam
ship Company that operates various |
Colonial lines.
A few months ago the Oceanic and |
the Union companies jointly made a |
direct offer to the Hon. J. @. Ward, |
Treasurer of New Zealand, just prior |
to his departure for England on Off |
cial business, which, in part, involves |
a substantial mailage guarantee for a |
period of seven years. That otter is |
now under consideration. COincident |
with this offer, and supported in no !
small measure by the complaints of |
the New Zealand Government al |
ready referred to, the petition to the |
next Congress for subsidy will be !
presented. !
The development of the transPa- |
cific carrying facilities from Northern
Pacific Coast points, Vancouver, 3.
c., Puget Sound points and Portland, |
Or, has taken away substantial pOr-
tion of the trade that, with the excep-
tior of sailing vessels, was exclusive
ly handled by the Oceanic Company.
Not only has this competition actu-
ally increased, but the prospects of
lIISI 1hC1OClSS e1lC 4Ol OS
the Investigations now being made by
President J. J. Hill of the Great
Northern Railway. The demand of
the Oceanic Company's business, in
the face of actual and prospective
competition, require more improved
and faster steamers.
1t is possible too, that the company
will enter into the Northern Pacific
Coast trade. 1t has not been deffn-
itely determined whether the line will
be extended to northern points or
whether, should it be decided to do so,
the extension will start from San
Francisco or from Honolulu. In the
latter event, should Portland be made
q touching point, the newly estab-
lished steamer lil,e of the OTegOnRaiI-
way and Navigation Company will be
its rival, as we'll as the Canadian Pacific
line. IF from San Francisco, the new
line will have a lively competitor in
the Pacific Coast Steamship Com
pany.
John D. SpreckeIs OF the Oceanic /
in confirming the above
outline of the situation and the com
pany's plans said:
"While We have arranged 10 ask
Congress for q subsidy, not only in
the interests Of our government, but
also as q substantial recognition OF
our proposed Improvement OF the ser
vice, | cannot, of course, say that our
request will be granted. Certainly the