The Hawaiian gazette., 1905-07-28
IS OF VAST
IMPORTANCE

SAN FRANCISCO. July 1s-The an
nouncement that the American. Hawai-
ian Steamship Co. had entered into a
traffic contract with the Tehuantepec
Railroad of Mexico is almost startling In
its commercial possibilities for Cali
fornia. 1t means competition in freight
rates with the great transcontinental
Understanding that California
has been praying for these many years.
The transcontinental roads have had
such control of the Pacific Mail that
that steamship company afforded Cali
fornia shippers no relief. The Pacific
Mails freight rates were fixed by the
railroads and the shippers were taxed
all the traffic would bear.
No one else could break in, because
the Pacific Mail had an exclusive con-
tract with the Panama Railroad. Then
the Federal Government took over the
Panama Railroad and abrogated the
Pacific Mail contract, announcing that
hereafter all steamer and sailing lines
would have equal rates and privileges
on the isthmian road.
The Pacific Mail threatened to take
off its steamers. Then, when Secretary
Taft was here he said, pessimistically,
that the rates at Panama fixed by the
Government might not afford California
shippers the relief they hoped for from
the tyranny of the transcontinental
roads. 1t looked to man up tree
as IL the Federal Government intended
to care for the interests of those roads
first, without much regard for the wish
es of California merchants and pro-
ducers.
WILL GIVE FAST SERVICE.
But now comes the American Hawai-
ian Company with an announcement
that 1t is going right after those
freights, and it will soon be in shape
to compete to the very best advan-
tage. 1t already has a fine fleet of
mammoth freighters of the very latest
design. 1t has been operating these
freighters between New York, Pacific
coast ports and Honolulu. by way of
the straits of Magellan. Two still larg-
er steamers are now being constructed
for the company at the Union Iron
Works. The steamers burn the cheap
fuel oils of California, operating with
up-to-date equipment.
The Tehuantepec Railroad runs from
Salina Cruz on the Pacific to Coatza-
coalcos on the Atlantic. 1t is Mexi-
can road about $50 miles long, and
something like $75,O00O00 has recently
been spent in putting 1t into the finest
modern condition. S. Pierson & Sons,
the famous London contractors, have
done the work. Excellent harbors are
being made at the two termini, and
these are being arranged with special
regrd to the requirements of the big
steamers of the American Hawaiian
Company.
1t Is calculated that the two harbors
will be ready by July 1st of next year,
and the steamship company will be
ready for the traffic long before that.
ADVANTAGES OF NEW ROUTE.
advantage the company will have over
the Pacific Mail. The route from San
Francisco TO New York will be 1900
miles shorter by way of Tehuantepec
than by way of Panama.
Freight shipped by Pacific Mail now
takes about thirty days between San
Francisco and New York The Amer
ican-Hawaiian Company will make the
trip in twenty-five days. When it is
considered that the special fast freights
of the transcontinental roads consume
from sixteen to twenty days in this
journey II will be seen how important
n competitive factor the big steamship
company is to become, and the contract
between the company and the Te-
huantepec Railroad is to run until the
opening of the Panama Canal, or
longer.
From f. r. Dimond of the firm OF
Williams. Dimond & Co., the Pacific
Coast agents of the American Hawai-
ian Company, it was learned last night
that It is intended to put the four
single-screw steamers of the company
of the type of the Californian and Ha.
waiian on the Atlantic lde OF the run,
while the three big twin-screw vessels
of the type of the Alaskan will be run
on the Pacific. These three steamers
win handle freight from and to San
Diego, San Pedro, San Francisco, Puget
Sound and Honolulu. Smaller steam
ers are to engage In the coastwise traf-
fic. A special effort is to be made to
handle the perishable freights of Cali
fornia.
George Gould tried TO get the con-
tract with the Tehuantepec Railroad
and the owners of the Ward line OF
steamers also made an effort to Sc
cure it. But the American. Hawaiian
Company got in ahead and made the
arrangements that promise to be of
such vast importance to Pacifs Coast
shippers,