The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1905-07-27
IS OF VAST
IMPORTANCE
What the A..h. Tehaun.
tepec Contract
Means.

SAN FRANCISCO, July 1S.-The an.
nouncement that the American Hawai-.
ian Steamship Co. had entered into g
traffic contract with the Tehuantepet
Railroad of Mexico is almost startling il
its commercial possibilities for Cali.
fornia. 1t means competition in freight
rates with the great transcontinental
Notwithstanding 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,
hot fha 20, o+ Do,
Government might not afford California
shippers the relief they hoped for from
the tyranny of the transcontinental
roads. It looked to a man up a tree
as If 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 it is going right after those
freishts, and it will soon be in shape
to compete to the very best advan-
tage. 1t already has a fine fleet of
vi llIc 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 a Mexi-
can road, about $50 miles long, and
like $4,000, 900 has recently
been spent in putting it into the finest
modern condition. 5. 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.
A glance at the map will show the |
advantage the company Will have over |
the Pacific Mail. The route from San |
Francisco to New York viii 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 |
can-Hawaiian Company will make the |
trip in twenty-five days. When it is |
considered that the special fast freights |
IF the transcontinental roads consume |
from sixteen to twenty days in this |
journey it will be seen how important |
4 competitive factor the big steamship |
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 |
hat it is intended to put the four |
steamers Of the company |
Of the type of the Californian and Ha-
yaiian on the Atlantic ide of the run, |
while the three big twin-screw vessels
IF the>type of the Alaskan will be run
IN the Pacific. These three steamers
will handle freight from and to San
Diego, San Pedro. San Francisco, Puget |
Sound and Honolulu. Smaller steam
,rs are to engage in the coastwise traf-
ic A special effort is to be made to
handle the perishable freights of Cali
,ornia.
George Gould tried to get the con-
-ract with the Tehuantepec Railroad
and the owners of the Ward line OF
steamers also made an effort to Sc
,ure il. But the American Ha waiian
Company got in ahead and made the
rransements that promise to be of
such vast Importance to Pacifi, Coas
shippers.