The Hawaiian gazette., 1908-12-15

reigned in business circles yesterday
when it was persistently reported that
Z. H Hartman had obtained control
of Or consummated a traffic agreement
with the American. Hawaiian Steamship
Company, and that an immediate ad-
vance of ocean rates on Eastsbound
commodities would be made lin pursu-
ance of the policy of the transcontinen-
tai railroads to put in effect, January
LIST, a horizontal increase of freight
rates affecting California terminals.
Business men were later transported
from state of high alarm to utter
SPECIFICATION by the confirmation of the
report that rates would be advanced
by the steamship company.
From A. NJ. Sutton, general freight
agent of the American-Hawaiian Com.
pany, was drawn an equivocal admis-
sion that an increase would be made,
which, in most particulars, would cor
respond with the threatened advance
of East-bound rail rates. There will
be no West-bound advances, according
to the freight agent.
Denies Traffic Agreement.
Sutton emphatically denied that the
increase would be made under a traf-
fic agreement with Hartman, asserting
that any intelligence indicating that
the railroad magnate had obtained con-
troll of the steamship line, or that he
had succeeded in effecting traffic ar
rangement, was entirely unfounded and
absurd. II. A. Jones, general freight
agent of the Southern Pacific Company,
said he knew nothing of such an agree
ment and that he thought the report
was unfounded.
1t is the opinion of business men,
however, that an arrangement of some
sort has been made, if the control of
the steamship line has not been actu-
ally >transferred. In support of this
opinion it is declared that the contem-
plated advance by the steamship COM
pany will correspond with the threat
ened increase of rail rates. Evidently,
the traffic men knew what they were
doing when it was first proposed to ad
vance rail rates and knew also what
to expect of the steamship line, it is
said. The confirmation of the contem-
plated advance by the steamship line
is commonly accepted as being indica-
tive of the fact that the transconti-
mental railroads had no fear of increas-
ing the differential in favor of the wa
ter route.
1t is asserted, furthermore, that, like
THE threatened rail tariffs, the advance
by the steamship line will affect only
California and California products. This
is regarded as conclusive evidence of
a traffic agreement between the rail
roads and the steamship company.
Where Advance Applies,
AS far as can be ascertained the con-
templated advance of water rates will
apply principally to several of Califor-
mia g most important commodities
dried fruit, canned fruit, canned salmon
and leather. 1t is the claim of the
officers of the steamship company that
but few commodities are shipped east
ward and that not more than three
expectations of leather have beer made.
Notwithstanding, there is great
anxiety in business circles, inasmuch
as it had been hoped to find relief from
the threatened advance of rail rates by
diverting all commodities which would
stand water transportation to the
American Hawaiian Company. The news
yesterday fell like bomb and it will
be some time before shippers recover
their shattered senses.
Business men have been facing a
grave situation since the matter of
freight rates was first discussed. 1t
has become more and more, from day
to day, common topic.
Looming through the clouds of
trouble and apprehension, however, has
been the ray of hope radiating from
the ocean and the ACKNOWLEDGEMENTS
line, the freight patronage of which,
it is said, has been increased gradually
and consistently. There has been a
great feeling of confidence in the steam.
ship company and all shippers have be-
lieved that if denied relief by the rail-
roads or the courts, they still might
find an outlet for the bulk of their
products through the steamship line.
Now, they seem to think that their last
hope has been blighted, as what is de-
scribed as a small advance will keep
shippers relatively in the position they
have hitherto occupied.
Effort has been made to establish the
authenticity of these reports, which, it
is said, first emanated from an officer
of the Southern Pacific. Company two
weeks ago.
Many Reports Circulated.
subsequently report was started to
the effect that the control of the Te-
huantepec railroad, which conveys the
freight of the American Hawaiian line
to the Gulf of Mexico, had, too, passed
to Hartman. This, and other reports,
were circulated freely. An effort was
made a week ago to confirm them at
the offices of the steamship company
and elsewhere.
DIANTrle TunrlIrMrn