The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-07-16
RATES NOW TOO LOW.
Waiting for Freights to Be Ad
vanced by the Transconti-
mental Lines.
MONSTER SHIPS TO BE BUILT.
Some of the Peculiar Features of the
Through Transportation Situa.
ton Outlined.

Never before in the history of San Fran
cisco was the transportation situation, so
far as through freights between here and
New York is concerned, so involved and
so full of uncertainties as at the present
time. 1t is also great with prospects of
new enterprises.
Rates by rail by the Isthmus and the
Horn are at the lowest possible notch,
and though there have been sometimes
vague and sometimes definite reports that
q decided advance was to take place, moth
ing of nature to gladden. the hearts of
transportation companies and agents has
occurred.
1t is generally admitted that the trans
continental lines now control the situation
and that until they come to an under
standing and arrangement whereby freight
rates may be increased there can be no
change for the better.
1t is further admitted that rates are not
likely to be advanced on the rail lines until
the debt of the Central Pacific Company
to the Government is disposed OF, either by
refunding or by foreclosure of the Govern
ments mortgage, as under the present
condition of things Mr.. Huntington could
not afford to allow the Central Pacific Rail-
road to make any money 1t would take
away his chief and best argument in favor
of refunding.
But whenever the time comes that rates
are advanced to where the balance will
show on the right side OF the ledger of the
water carriers, there are two separate
steamship lines promised for the route be-
tween San Francisco and New York via
Cape Horn.
One of these will be operated by the
Johnson-Locke Mercantile Company of
-. 4 &l< h. ~ e. =
| New York.
1t is now definitely announced that SUIT
! ton e. Co., whose assignment at New York
was mentioned in THE CALL yesterday,
will retire for good from the clipper bust
ness. That the firm was in financial
straits for some time past has been well
known in this City, and with the death of
! Woodwork Sutton, who was the &C
knowledged brains and Drawn ofthe firm,
! on the 8th of June, its collapse was con-
sidered to be but matter of time. So the
news of the failure came with little or no
surprise to the local shipping men and
merchants.
1t was in anticipation of just this deveI-
! opment that Flint 81 Co. conceived the
idea of putting on a line of clipper ships,
and the Inauguration of the new COM
pany's enterprise is now but matter of
days.
Allen NJ Sutton of Sutton & Beebe, the
local agents of Sutton & Co. of New York,
has secured a berth with Williams, Dim ond
& Co., who are agents for the Dispatch
line of clippers operated by Dearborn &
Co. of New York.
J.F. Chapman & Co. are to be the local
agents of the Flint clipper line, whose in
terests in New ork are to be managed by
Simpson & Haldt.
At the Office of Chapman d Co. it was
learned yesterday that in the event of the
clipper business being developed, as it was
confidently hoped it would be, the clippers
would in due time be replaced with steam
ers and the time round the Horn be
thereby reduced from $50 days, or si1
months, to go days, or two months.
About three years ago the Johnson
Locke Mercantile Company operated 6
line of steamers around the Horn for {
year and a half and with satisfactory re
suits, but the rate war that began at that
time made the project Improbable. Five
steamers were in service, with an average
capacity OF about $500 tons.
Rumors have been current for some
time that the same company was about tC
resume operations with steamers around
the Horn. Frank Johnson was asked
about the matter yesterday and admitted
that such plans were under consideration.
s'We are not ready to talk about the
project now,'' he declared. 1--WE cannot
do anything at this time, nor until the
railroad rates in force at present are ad.
| vanced, for there would be no money In II
trying to compete for business at the low
figures that prevail. 1t would be prema-
ture for me to speak in detail of the mat
ter at the present time"
| Should Flint 81 Co. decide to convert
their proposed clipper line into steam
ship, it is their purpose to have special
steamers built for the business. They
will be between $500 and 5000 tonnage
capacity each, SO as to carry sufficient
cargo to return fair profit, it being
claimed that smaller vessels would be
much more costly to operate in proportion
to the size.
Interesting in this connection is report
received by a prominent local shipping
firm from New York that the revised rates
decided upon by the Transcontinental
Traffic Association few months ago were
to go into operation on the 1st OF August
Confirmation of the news, however, wa:
not obtainable.