The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1905-07-27
ROUTP
TO THE ATLANTIC
THE TEHUANTEPEC ROUTE IS
HAILED BY THE COAST AS \
RELIEF FIRM MONOPOLY.

The announcement that the Ameri-
can-Hawaiian Steamship Company had
entered into a traffic contract with the
Tehuantepec Railroad of Mexico is al
most startling in it's commercial pos
sibilities for California. 1t means COM
petition in freight rates with the great
transcontinental railroads something
that California has been praying for
these many years.
The transcontinental 'oads have had
such control of the Pacific Mail that
that steamship company afforded Cali
fOrnia shippers no relief. The Pacific
Nails 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 steamers nd 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 m ght not afford Califor-
mia shippers the relief they hoped for
from the tyranny of the transconti-
mental roads. 1t looked to a man up a
tree as if the Federal Government in
tended to care for the interests of those
roads first, without much regard for
the wishes of alifor7ia merchants and
producers.
But now comes the American Ha-
Waiian Company with an announce
ment that it is going right after those
freights, and it will soon be in shape
to compete to the very best advantage,
1t already has a fine fleet of mammoth
treighters of the very latest design. It
has been operating these freighters be-
tween New York, Pacific coast ports
and Honolulu, by way of the Straits of
Magellan. Two still larger steamea IS
are now being constructed for the COM
pany 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
'-'''iAiI ~ 10 pll the racine TO COatZd-
coAlcos on the Atlantic. 1t is a Mexi-
can road, about $50 miles long. ant
something like %5,OOO,OOO has recently
peen spent in putting it into the fines
modern condition. S. Pierson & Sons
the Famous London contractors, have
done the work. Excellent harbOrs ar,
being made at the two termini an;
these are being arranged with specia
regard to the requirements of the bis
steamers of the Americana Hawaiian
company.
1t Is calculated that the TWO harbort
VIII be ready by July LIST of next year
ana the steamship company will b,
ready Tor the traffic long before that
a glance at map will show the ad
vantage the company will have owe
the Pacific Mail The route from Sm
Francisco 10 New York will be go
miles shorter by way of Tehuantepe.
IMAM by way Of Panama.
freight shipped by Pacific Mail now
taxes about thirty days between Sar
FRANCISCO and New York The Ameri
can-Hawaiian Company will make the
TRIP IN twenty-five days. When it I,
considered that the special fast freight.
OF the transcontinental roads consume
from sixteen to twenty days i'm this
Journey 1t will be seen how important
competitive factor the big steamship
company is to become, and the con
tract between that company and tn,
'Iehuantepec Railroad is to run unit