The San Francisco call., 1895-12-30
The Panama People Unable to
Handle the Business
Offered.
WILL BENEFIT THE SUNSET.
Increased Traffic for the Southern
Pacifc-A Clipper Line May
Be Started.

Owing to the inadequate facilities of the
Panama Railroad Company, which op-
crates the Columbian line of steamers be-
tween New York and Colon, congestion
OF California freight has resulted in New
York, with the probability that the sur
plus business will fall to the share of the
Southern Pacific Company.
Notice was verbally given to the large
importers of San Francisco on Saturday
by E. H. Hinton, the local agent of the
Panama Railroad Company, that rates and
engagements for through westbound
freight from New York could not here
after, until further notice, be made through
him. The merchants were further in
formed that all negotiations for such
freight must be made with John Muir, the
general traffic manager of the company,
at New York, as the facilities for such
freight were extremely limited at present.
This announcement has greatly added
to the growing sentiment among the
largest shippers of this City that the
Panama Pacific Mail combination recent
" effected in New York means return to
conditions prevalent prior to the advent
of the North American Navigation Com
pany, the first genuine competitor the
Pacific Mail Steamship Company had to
contend with.
Though this competing company was
operated at an actual loss TO the stock
holders, who were members of the Traffic
Association. Its losses were but fraction
of the saving afforded to the merchants of
San Francisco in the saving of freight
charges brought about by the keen compe-
tition with the Pacific Mail Steamship
Company and the consequent reduction of
freightS. And had more of the merchants
who were most largely benefited by the
freight rate reductions thus effected be-
come stockholders III the North American
Navigation Company and thus divided the
burden of maintaining the independent
line. the present undesirable situation
would not have been possible.
The North American Navigation worked
in cooperation with the Panama Railroad
Company and the Columbian Steamship
line on the Atlantic side, and when the
American Navigation Company withdrew
from the field the Panama people, instead
OF falling into the arms OF the Pacific Mail
Steamship Company, as that corporation
evidently expected they would after their
experience with the North American Com
pany, put on a line of steamers OF their
own to ply between San francisco and
Panama, thus maintaining an independent
route via the 1sthmus and are in direct
competition with the Pacific Mail Com
pany.
But this new and independent line did
not receive the support it expected, and
after long battle with it's more powerful
antagonist, was compelled TO capitulate
about two weeks ago, though on terms re-
ported TO be more advantageous to itself
than to the Pacific Mail.
1t was the general opinion, however, at
the time this deal was consummated, that
Mr.. Huntington knew his business and was
nn un OIv a ha Of
important a transaction. The theory he
was working upon, it was asserted, was to
kill competition via Panama, and then
manipulate matters so as to restore not
only rates over the Isthmus put over the
transcontinental railroads, and more par
ticularly over the Southern Pacific.
In THE CALL of Saturday it was shown
how this is likely to be accomplished, and
there is little doubt IN the minds of those
posted that Mr.. Huntington and his chief
aids are now busily engaged in bringing
about conditions that will . rmit of the
reformation of the Transcontinental Asso-
citation, which was disrupted through the
disturbing influence of the Panama Rail-
road Company shortly after it entered
into direct competition with the Pacific
Mail, about three years ago.
Until this is effected rates cannot very
well be restored, particularly as there are
known to be serious differences between
the Canadian Pacific and the Great North
ern lines on one side and the rest of the
transcontinental lines on the other.
But Mr.. Huntington does not intend TO
wait for the adjustment of this matter be-
fore he reaps benefit from the new Panama
route combination. So the local mer-
Giants say, and they view the latest devel-
opments in the matter OF the congestion of
California freight in New York as clever
bit OF tinesse on the part of the president
of the Southern Pacific Company, devised
to force shipments over the Sunset line
E.. H. Hinton. the local agent of the Pan
anna Railroad, when asked about the stu
alton that caused the virtual withdrawal
OF his company from the solicitation of
westbound business in this City, the means
by which they have heretofore obtained
the largest portion of such business, said:
The withdrawal OF the Pacific Mail steamers
from the Atlantic side has thrown all that Gen.
tral American business, which is very consid-
cradle, on our three steamers of the Columbian
line, and where previously we had room for
1000 to 1900 OF California freight on each
steamer we now have room for less than half
this amount. / was advised of this bv Mr.
Muir, and in order to avoid complications |
have Withdrawn the westbound rates hereto
lore made, ana nave refused to make any en-
gagements Tor such freight, as we may not be
able to fulfill them at New York. The local
merchants have been asked to have their East
ern representatives call on Mr. Muir at New
York for quotations of rates and Engagements
for room, so to avoid any possible embar.
rassment or disappointment
1t is the Intention of the Columbian: line TO
now increase their facilities by the addition,of
other steamers as soon as possible but rust
when these steamers will be secured 1t is hard
to tell, as the kind of Steamers required for the
service are not readily procured The facili-
ties will be augmented to such an extent as TO
give better service than was ever given be-
fore for California traffic.
1t was learned that none of the three
chartered steamers that have been plying
on this side of the continent in the service
of the Panama Railroad Company are to
be sent around to the other side. The
Progreso has already been laid off and
turned over to her owners. The Citv of
Everett viii be here about the middle of
January and will be disposed of in the
same manner. The Washtenaw will make
this port about the 1st of February and
also go out OF service Immediately
Freight rates are now so low that It
does not pay to carry any but the heaviest
kind of cargo on the Panama route. onlv
such freights, in fact. being sought as are
charged on q lightweight basis. such as
iron and metal manufactures, paper. drv-
goods, etc. The heavy westbound traffic.
VIII begin in month or six weeks, and.
unless the Columbian steamship line has
by that time sufficiently increased its
facilities, the Sunset route is certain in