The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-15
DECLARES ITS
INDEPENDENCE,
The Panama Railroad Out
in a Ringing Mani
feStO.
ITS POSITION DEFINED.
Asserts II Is Not in Any Sense
a Creature of the Pacific
Mail.
THROUGH RATES IN ITS HANDS.
It's Ancient Rival and the Trans.
continental Lines Virtually
in It's Power,

In order to retain the goodwill and sup
port OF the merchants of San Francisco
the Panama Railroad Company Is out IN
declaration of independence, so far as the
Pacific Mail Steamship Company and the
jranscontinental railroad lines are con-
cerned, and defines its relations TO its for
mer competitor and its influence on the
through-freight rate situation.
With the announcement of the signing
OF the agreement between the Panama
Railroad Company and the Pacific Mail
Steamship Company there sprang up
feeling among merchants and shippers
that-the Panama Railroad Company had
surrendered its independence and had
fallen once more under the control OF c. P.
Huntington.
This was a matter of some disappoint-
ment to every one interested in the estab-
lishment and maintenance OF reasonable
rates. 1t was believed that the apparent
consolidation of the Panama and Pacific
Mail companies meant the cessation OF all
genuine and active competition with the
transcontinental lines and that the latter
had virtual control OF all through business
Between the Pacific and Atlantic sea-
boards.
such view was strengthened by the
announcement shortly after the agreement
had been ratified that the steamship
facilities both on the Atlantic and Pacific
sides of the continent, were inadequate to
handle the traffic offered, and that con-
siderable business that had previously
gone via the Panama route would have to
Be moved by the alI-rail routes. Then came
another circumstance that appe AIRED to be
strongly conhTmatory OF the original
theory of the shippers. Overland freight
rates were advanced, and for the reason, as
declared by the railroad people, that the
steamer facilities were Inadequate to meet
the situation. Next followed the announce
ment OF the Pacific Mail that eastbound
rates VIA Panama would be advanced.
But the climax, so far as the Panama
Railroad Company is concerned, came
when it saw the statement published in a
contemporary, and credited to General
Freight Agent Smurr of the Southern Pa
cifc Company, that the Pacific Mail
Steamship Company contemplated run
ming only an occasional steamer TO Pan
anna with through freight from New I ork,
ard intended virtually to discontinue It's
regular San Francisco-Panama service.
This latter statement has since, however,
been denied by the Pacific Mail Steamship
Company. In the meantime the paper
containing this erroneous report reached
New York and fell under the notice of the
Panama Railroad Company's officials
there, and they at once telegraphed to
their agent in this City as follows:
E Il. Hinton, General Agent Panama Railroad
Company, san Francisco: Emphatically contra
dict published statements in your City that
Pacific Mail is to withdraw its regular steam
ers between San Francisco and Panama, SO far
SIS the san Franclsco-New York business is
Pacific Mail is pledged to run line of steam
ers 10 Panama 10 furnish our three ships with
ell freight they require, now not less than
1000 tons each.
Correct in positive unqualified language any
distortions or erroneous statements misiead-
ing TO shippers or detrimental TO US.
PANAMA RAILROAD COMPANY.
On the strength Of the virtual command
contained in this telegram to define the
position of the Panama Railroad Com
pany properly and clearly to the people of
this coast, Mr.. Hinton yesterday vouch-
safed an interview on the subject, in which
he stated in unmistakable words that the
Panama Railroad Company is and intends
to continue entirely Independent as COM
petitor of the transcontilental railroads
for through business. According to the
terms of the newly signed agree ment as in
terpreted by him, the Pacific Mail Steam
ship Company, far from being the domi-
nant power in the new compact, is in
reality completely subordinate to its for
meT plucky rival. So far does this go that
in all conferences that may be held be-
tween the transcontinental lines and the
companies engaged in the isthmus traffic,
the representative of the Panama Railroad
Company is to be the only acknowledged
agent of the lSthmus route interests.
you are aware, Mr.. Hinton" said the
interviewer, that there is a general belief
that the Panama Railroad Company has
virtually abandoned the through traffic
between San Francisco and New York on
account OF its recent arrangement with the
Pacific Mail Steamship Company"
Mr.. Hinton promptly replied as follows:
Yes, I am aware there is a very general con
Viction among the merchants that the Pam
ANA Railroad Company has surrendered,
''horse foot and Dragons, to the transconti-
mental rail interests, and that henceforward it
viii retire from the carrying OF any traffic in
competition with said lines. In view Of the
fact that this conviction has absolutely moth.
ing in the actual conditions to sustain it, it
seems quite remarkable that it should be so
universal The Panama Railroad Company
has no intention of abandoning the coastWise
traffic between the Atlantic and Pacific coasts
OF the United States, and there is nothing in
the new contract which can or will be per-
mitted TO interfere with its maintaining q
close ana active identity with that traffic.
This might be doubted IL the situation were
the same to-day that it was prior TO 1898, when
the Panama Railroad was subsidiary and an
obscure link in the Panama route, wholly de-
pendent upon its steamship connections at
Colon and Panama, and without the right 10
make the rates or the power 10 compel proper
development of the traffic in both directions.
But to-day the situation is reversed.
The Panama Railroad Company is no longer
q silent partner in the joint line, but IS rec
ognlzed and potential memb OF the firm. AS
guarantee of sustaining this prominent atti-
tude, it bought and now owns its own fleet in
the Atlantic, operated under the name OF the
Colum ban line and plying between New York
and Colon, thus giving it a through line from
New York TO Pansma. This makes II inter
ested in the New York and San Francisco trade
to the extent of 80 per cent, and it is not rea-
sonabie 10 suppose that IL Will close It's line
against traffic, of which it has demonstrated
its ability to carry so large volume and from
which 1t derives this reasonable share OF the
earnings.
understand the contract gives your COM
pany the right to name westbound rates. Now,
II II IS the intention of your company to be
identified with this traffic, why did you dis
continue all quotations on westbound traffic at
this end of the line?
You are right; the contract gives us the ex-
elusive right to make the westbound crates,
ana my disseminating quotations here on this
business is purely temporary 1t arises from
tue TACT that we are now doing the Central
american business from New York which was
heretofore done by the Pacific Mail ships. The
Ieurlng OF those ships from the Atlantic SER
vice throws the traffic referred to on our
tNolumDlan line ships and this leaves linn
lted space for the California business. To
aVo!o the possible embarrassing complications
OF quoting rates without being able to guaran-
zee ROOM OF having freight shipped to our