The San Francisco call., 1896-08-07
Interesting International Com
plications Likely to Arise
in the Case.
FACTS ABOUT THE NEW LINE
It's Shares Said to Be Held in Part
by the Members of the Mika.
dos Family.

Back of the failure of the Nippon Yusen
Kaisha Imperial Japanese Steamship
Company to make San Francisco its
American terminus lies an interesting
bit of history, involving what appears to
be a violation of contract by the japanese
company. This contract was with the
Pacific Mail Steamship Company.
The chief reason assigned for the Yusen
Kaisha's giving San Francisco the cold
shoulder was that the Southern Pacific
Company had refused to enter into any
arrangements whereby the proposed
steamship line would receive equal con-
sideration in the matter of through busi-
ness with the Pacific Mail. This state
ment was made by Mr.. Kovo, the
japanese Consul at this port, and the
alleged opposition of the railroad people
to the coming of the proposed steamship
line was attributed to the desire to protect
the Pacific Mail Steamship Company.
In view of the cordial reception and
hearty encouragement recently given by
the Southern Pacific representative to
President Asano of the Toyo Kisen
Kaisha (Oriental Steamship Company,
anu the contrast thus shown to the treat
ment accorded the Nippon Yusen Kaisha
people, it is con njeCtured that the action of
the railroad people toward the Imperial
Japanese Steamship COMPANY was largely
inspired by the fact that the Imperial
Company had broken faith with the
Pacific Mail Steamship Company.
Early in the decade beginning with
1880" said General Manager Schwerin of
the Pacific Mail Steamship Company yes
terday, 1.-THE Pacific Mail Steamship Com
pany owned the coastwise lines of steam
ers in Japan. These were sold to the
Mitsu Bishi Steamship Company, which
afterward became merged in the Nippon
Yue en- kaisha.
Part of this transaction was the trans
fer of the good will of the steamship busl-
ness in Japanese waters on the part of the
Pacific Mail Steamship Company's lines
and the transfer of the good will of the
japanese line so far as the trans Pac ific
business is concerned. The Nippon Yusen
Kaisha was not to put on a line to any
Pacific port in the United States without
giving two wears notice IN writing to US,
The Pacific Mail received notice only two
weeks ago of the proposed line to Seattle
to be operated by the Nippon Yusen Ka-
isha.'
Mr.. Schwerin declined to state what
proceedings would be taken against the
Japanese steam ship company, but left it
10 be inferred that the matter would prob
ably be taken up in its legal aspect. An
interesting international suit may there
fore be one of the outgrowths of the pres
ent situation.
AS the Nippon Yusen Kaisha is prac-
tically Government concern any lltiga-
tion that results will present unique legal
phases. A large part of the shares of the
company are supposed to belong to the
Emperor and members of the imperial
family. a Prince was at one time presi-
dent OF the company. 1t has monopoly
Of the coasting trade. 1t is exempt from
all harbor dues and has other valuable
privileges in addition to its subsidy.
1t is expected that the first vessel of the
Nippon Yusen Kaisha TO run in connection
with the Great Northern Railroad will sail
from Seattle Angus 20.and regularly there
after a intervals OF three or four weeks.
Mr.. Whitney, the general passenger agent
OF the Great Northern, is now arranging
the schedules and getting his printed mat
ter ready for advertising the ENTERPRISE,
and the traffic department is making up
the freight rates. Mr. Iwanaga, the gen.
eral manager OF the Nippon Yusen Kaisha
line, and Mr.. Mcmillan, the Scotch gen.
eral superintendent, are now making a
trip through the East, but will be back at
Seattle in time to meet the first steamer
when she arrives at that port. She left
Yokohama several days ago, and is ex-
pected to make the voyage in fifteen or
sixteen days.
The steamers that have been selected for
this route were purchased by the Nippon
Yusen Kaisha for the use of the Govern
ment during the recent war with China,
and were in service as transports in NOV
ing troops TO Korea, Liao-tong and For
mosa. The most of them were built on
the Clyde. They are between 1000 and
5000 tons burden, and are fitted up with
ali the comforts and convenIences de-
manded by modern travel. The captains
oro ne l1xyE ov1ic c1, oh I
though there are a few Americans and
Germans In the service. The other Off
GERS and all the crews are Japanese. 1t is
the policy of the Nippon Yusen Kaisha to
dispense with the services of foreigners as
fast as possible and place natives in COM
mand of their ships, but they have found
that foreign captain makes vessel more
popular with foreign travellers and yield
that concession for business reasons.
1t is understood that the new steamship
company will be able to control rates, as it
receives an per cent guaranty from the
Government of Japan. There Is said to
be no intention, however, to disturb the
present schedules which are maintained
by the Pacific Mail. the Canadian Pacific.
the Occidental and Oriental and all except
the tramp steamers. The Great Northern
Company will simply seek its share of the
traffic at existing rates.
The chief reason for establishing the
new service, in addition to national pride,
lis to import iron and cotton into Japan
direct from the United States instead of
via England. OF the $40, 200, COO worth of
raw cotton imported by the mills of
Japan nearly 80 per cent comes from the
United States, but not pound of it APP
pears in the statistics of commerce be-
tween the two countries. 1t is shipped
from Savannah, Charleston, Brunswick,
Mobile and New Orleans to Liverpool,
consigned to British middlemen, who
tranship it to Kobe and Osaka and charge
q big margin. For some mex p]icable
reason there has never been a direct
trade. But now, with the new steamers,
the Japan mills will be supplied direct,
and they have already contracted with the
Nippon Yusen Kaisha to supply them
with SO many bales year for term of
years at a price so much above the regu-
lar market quotations as to cover trans
portation, insurance, handling and other
charges.
Therefore, the principal cargo westward
will be cotton. For that reason the Nippon
Yusen Kaisha were for time negotiating
with the Santa Fe road for connection at
San Diego. Cal. 1t is a long and expen-
sive haul for cotton from the gulf States to
Puget Sound, bat M Hill has made sat-
isfactory traffic arrangement with the
illinois Central Railway and line OF