The San Francisco call., 1896-03-06

Panama Railroad Company. He has
that company underneath and he IS in a
position to keep it there just as long as he
pleases, Judging from the present outlook.
On Tuesday last THE CALL published the
facts showing that a bitter and determined
rate war on eastbound business from this
City to New York had been inaugurated
apparently between the Panama Railroad
Company and the Pacific Mail Steamship
Company on one side and the Southern
Pacific Company and its railroad allies on
the other. Recent developments, how
ever, show that the only sufferer in this
contest is now and is likely to continue to
be the Panama road.
AS the situation is now, with but 81
differential between the all-rail route and
the isthmus route, not ton OF freight IS
likely to be offered to the water-line car
riers.
From shipper who is deeply interested
in through freight, it was learned yester-
day that the Panama people have asked
their ally, the Pacific Mail, to put into
effect before the 7th inst, when the next
steamer leaves here, 30-cent rate on east
bound business. The rate at present is 40
cents per 100 pounds. With a 30-cent rate
III operation, there would be a difference
OF 81 per ton between the rail rates and the
steamer rates, and it is thought this Will
divert at least some small quantity OF
busine IS to the water line.
+. II. Hinton, general agent OF the
Panama confirmed the report that his
company had asked for 30-cent eastbound
rate but Manager Z. 2. Schwerin OF the
Pacific Mail SAID late yesterday afternoon,
that he had not been officially advised OF
such demand, and could not, therefore,
tell what would be done toward putting
such rate into effect.
But even if this rate is put in, the strain
in the situation will not by any means be
relieved, and before harmony is restored
there will have to be complete read just
ment OF rates. This can only be accom-
pllshed by making rates that will give the
steamship people differential of not less
than s., as was the case prior to 1898, when
the Pacific Mail had complete control of
the Panama route traffic between San
Francisco and New York.
Considerable speculation has been in
dulged in touching the peculiar situation
of affairs, which apparently places G. p.
Huntington, president of the Southern
Pacific Company, in direct opposition to
C. P. Huntington, president OF the Pacific
Mail Steamship Company.
TO the uninformed and disinterested OBJ
server it appears as if Mr.. Huntington
were using his railroad property to injure
the Pacific Mail Steamship Company and
through it the Panama Railroad Company.
But Mr.. Huntington is too shrewu finan-
cier and manipulation to indulge in any such
unbusiness)ike practice. He is, according
to facts ascertained yesterday, simply try
ing to play game of freezeout against the
Panama Railroad Company, and would
have been completely successful but for
the prompt and energetic action of the
Panama people.
Shortly after the contract between the
Pacific Mail and the Panama road was
signed, last December, both rail and
steamer rates were advanced, leaving a
difference of So between the rail and water
routes, the latter, of course, quoting the
lower schedule. This differential, it was
found, failed to bring business to the Pan
anna route and, despite the fact that the
recently signed contract provides that the
Pacific Mail should furnish a certain
amount of tonnage to the steamers of the
Columbian line on the Atlantic size, the
Pacific Mail failed to do anything to in
duce freight to move via Panama. This
inertia brought out q demand from the
Panama people for reduction OF the 60
cent rate between San Francisco and New
York to 40 cents. After a correspondence
extending over two weeks the Pacific Mail
finally acceded to the request of its ally
and announced such a rate to go into
effect on the steamer to leave on the 7th
inst All the benefit that ought to
have accrued from this action was pre-
vented, however, by the prompt retalia-