The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-04-05

Coils P. Huntington never sleeps on his
victories but keeps marching right on to
new ones. Hardly had he completed the
deal whereby he prevented the Central
Pacific from slipping from his control
when he began planning measures 10 in
sure profitable returns for that and his
other railroad properties. in addition to
his expressed purpose of making the
people Of California pay the debts of his
railroads.
Ever since the Panama route between
Pacific and Atlantic ports has been OPP
Grated it has been menace and check on
high transContinental freight rates, as it
is possible to make lower rates by way OF
Panama than by any all rail route, owing
TO the long water carriage. At the pres
ent time there is a contract between the
Pacific Mail Steamship Company. which
is controlled by Huntington, and the
Panama Steamship Company, the re-
suit of a compromise between those two
corporations after a long and bitter fight,
by means of which rates are maintained
at such figures between Pacific and At
lantic ports as make IL possible for the
transcontinental railroads to compete
with the Panama route for through bust
ness.
1t is a matter of common knowledge in
railroad circles that the Panama Steam
ship Company, which operates the rail-
road across the Isthmus of Panama and
the line Of steamers between Aspinwall
and New York, in conjunction with the
Pacific Mail steamers that ply between
San Francisco and Panama, has been
greatly dissatisfied with the terms of the
existing contract 1t is claimed that the
Pacific Mail diSCriminateS in favor of way
business and against through business to
the injury of the Panama Steamship
Company. The reason for this is alleged
to be twofold. The Pacific Mail receives
considerably better rates for way freight
between San Francisco and Central
American ports than it does for its share
of the through business carried to Pan
ANA. and by diverting traffic from the
Panama route 1t is forced TO seek the all
rail route, mostly over the Huntington
lines.
The friction between the Pacific Mail
and the Panama company has been grow
ing greater, and it is considered improba
bic that a renewal Of the present rela-
tions Will be arranged when the present
contract expires. The probabilities are
that the Panama people may undertake
TO again operate an Independent Compel
ing line between New York and Pacific
Coast ports. as it did before entering into
the existing combination with the Pacific
Mail. 1t is for such contingency that
Huntington is evidently preparing. The
first step toward future action independ-
ent of the Panama line and other competi-
tors was mentioned in the following dis
patch from New Orleans published in The
Call yesterday:
c. p Huntington's agent left on the steamer
complete the purchase of the Guatemala and
Northern Railroad, on which there is a break
of sixty miles between Port Barrios and Guate-
maIa City. This break will be completed by
Huntington. and with the line to San Jose that
he has also purchased, will give him a line to
the Pacific. The road will be operated in con-
nection with a line of steamers from New Or
leans which will run to Port Barrios in two
and half days giving Huntington a line by
water and rail from New Orleans TO the Pacific
in four days.
The carrying out of the plans here out
lined will give a through line between
the Atlantic and Pacific. seabOards that
will be much shorter than the Panama
route and less expensive to operate than
any now existing with the exception of
the clipper route by way of the Horn. In
order to perfect the transportation chain
between New Orleans or New York and
San Francisco It will be only necessary
to have the Pacific Mail steamers on this
side connect with the Guatemala road
at San Jose de Guatemala. In order to
ascertain how far these negotiations had
heen carried and the significance of the
deal Mr.. Huntington was interviewed.
Are the statements contained in the
dispatch from New Orleans pertaining to
the Guatemala and Northern Railroad
correct?" he was asked.
There are some negotiations going
on he said, but nothing has been COM
pleted as yet"
"Will not this new line by way Of Guate-
uala be operated in connection with the
Pacific Mail Steamship Company in pref
erence to the present Panama route for
through business?"
"Al this Is premature, as there is moth
ing in the world but talk as yet
The contamination Of this plan will not
only give Huntington the whip hand of