New-York tribune., 1907-11-09
NEEDGOVERNMENTLI LINE
MAYHAVE TO BUILD SHIPS
Pacific Mail Likely to abandon San
FranciSc0-Panama SerUice.
rFrom The Tribune Bureau.

TFrom The Tribune Bureau
Washington. Nov s.-Information has reached
Washington from the Pacific Coast that the Pacific
Mall Steamship Company. which owns the only line
OF steamships between San Francisco and Panama
and South American ports. thus providing the con
Meeting link between the Panama Railroad and San
Francisco. is seriously contemplating abandoning
its line. This would break the transisthmian con-
nectioD between New York and San Francisco. and
compel the immediate establishment Of the govern
line the Pacific which. was exclusively
announced in these dispatches of July s. Secretary
Taft has for some time had under consideration.
Before Secretary Taft sailed for the Philippines
ne commissioned Joseph L. Bristow, formerly
Fourth Assistant Postmaster General to go to San
Francisco and investigate the charges of the Pan
Railroad and the Isthmian Canal Commission
that the Pacific Mail company was rendering in
adequate and unsatisfactory service between Pan
anna and San Francisco. thus injuring the business
of the Panama Railroad. the government line from
New York To Colon and the isthmus to
Panama, and the interests of shippers. and the
further allegation that this bad service was part
OF plan 10 discourage shipments across the 18TH
mus. Mr- Brisrow has been conducting his iuves-
usation on the coast for time. but it is not
known here whether or not the fact that a federal
officer was looking into its record caused the
manager Of the Pacific Mall company. f. P
Schwerin, 10 decide the step he has written
friends here that he expects to take.
The government officials in the canal have
reported 10 Secretary Taft that after careful in
vestigation, they are convinced that the canal
mission could put on a line Of six ships Of about
1900 gross tonnage, which can be built for about
$500 900 each. total OF g 10000 and would pay
profit Of not less than $30ooO. 10 per cent. on
transisthmiaR business alone while it is also be
lieved that considerable business between Pan
anna and South American ports could be built up
OF course, ali profit made by the government line
would be devoted to diminishing by that much the
cost Of the Panama Canal 10 the taxpayers.
1t has been the belief of those who have done
conducted with view TO discouraging trans
isthmian business in TIE interest Of the transconti
mental railroads Tie ships o: the company, It IS
alleged, old and incapable because Of frequent
b-eakdowns. etc of rendering satisfactory service.
This has been frequently called 70 the attention OF
Mr. Schwerin. and that Official promised Mr..
Shonts. when the latter chairman OF the 18th
mian Canal Commission To construct ind commits
sion ships Mr Shorts also had interview
with E II. Hartman. a result Of which ne
wrote to Secretary Ta.c that Il subsequently, re-
ceived the impression from statement made by
Mr Hartman that they would probably push for
ward these ships to completion. but the
service have received and the position taken by
the Pacific Mail. as Indicated show that
they are not cooperating in the spirit indicated
There is evidence in the files Of the Canal Com
mission in support Of tire charge that the Pacific
Mail company has shown desire 70 furnish salts
factory service and that II hindered the natural
growth Of transisthmian business. This company
has also been opposed to the shipping bill This
bill. which passed both houses OF Congress last
session and finally talked to death in the
closing hours, it being still IN conference, pro-
vided a subsidy Of S6iJ.OOO a year for q line
ming between san Francisco Panama Peru and
Chilli M Schwerin. who was IN Washington Al
the time said that he did not want such n sub
sfdy as line would not he willing 70 submit It's
affairs TO federal supervision and 10 comply with
such provisions for frequency and rapidty of ser
vice as would be necessary 10 obtain the subsidy.
while would be opposed the subsidy being paid
TO any other line which would compete with tho
Pacific Mail 1t now appears. according 10 the
statement OF Mr.. Schwertn that this policy has
resulted in losing for his company considerable
portion Of the business - formerly did with South
American ports or course. no foreign steam
ship company could, under the coastwise laws com
pete with the Pacific Mail company on freight or
nasse1qe- business between New York and San
Francisco but the Atlas Line, which IS owned by
the Hamburg American company, has established a
line OF steamers between New York and Colon,
stopping at various West Indian ports. and is said
TO be doing profitable business The inability to
get freight and passengers for the west coast Of
South America properly handled by the Pacihc Mail
conuanv has led 10 the establishment or the KOS
mos Line between Panama and South American
norts This line which is believed to be owned,
o- at least backed by the Hamburg American peo-
nIe has according to MI Schwerin, obtained al
T7ost ALI the business between Panama and the
south and that is said 20 be one of the reasons
ri,,ar nv Nj Schwerin for abandoning his line.
n, course II the Pacific Mail company suddenly
abandons its line It will result in considerable en-
barrassment for the government as II VIII De dlI-
o,+ 70 charter steamships with which 10 establish
federal line pending the time when new fleet
can he built but in the opinion OF Canal Commits
sor officials II would be better TO suffer such in
convenience than TO have the Pacific Mall com |
panv continue its present policy
Y Is understood that Mr.. Bristow will have his
report completed and ready for submission TO Mr
Taft as soon as the Secretary returns 10 Washing
ton. but should the Pacific Mail company take
tir,a nv the forelock Mr.. Schwern has tntl-
mated It will the Canal Commission may be COM
naed to act even before Mr. Taft returns from the
Orient Mr. Bristow has found great demand for
an rp-to-date service between San Francisco and
other Pacific ports and the principal Atlantic |
rorts and his report will probably confirm the as
sertIons OF the Panama Railroad officials that not
only would such d line pay satisfactory profit but
# would nlI d long felt by shippers. The
line could probably be sold at good profit after the
conpleton Of the canal If It should be considered
undesirable for the government longer to Own and
operate it.
PRESIDENT ON MURDER OF WALKER.