The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1908-11-06

literally, Mr.. Schwerin explained that
he used that as figure of speech
and that he hoped such contingency
would not arise, though he did not
deny that time might bring about such
state of affairs unless some remedy
Tor existing conditions can be found.
"We will continue on our schedule,
and if the business is there we will
handle it and fight for it, explained
Mr.. Schwerin. eff the freight is not
TO be had-if the ships go out empty
it then will be up to the board of di-
rectors to decide what course they win
pursue. -
Rivals Literally Subsidized.
That the Pacific Mail Steamship
Company's two principal rivals on the
Pacific ocean, the Canadian Pacific
| Steamship Company and the Togo XII
sen Kaisha Company, are subsidized
literally by their respective govern
ments has been known for some time,
and by virtue of their subsidies they
have cut deeply into the Pacific Nails
| business.
BY arranging with the great trans
| continental railroads of this country a
working basis for carrying transpa-
| cific freight either way on through
rates, the Pacific Mail has been able
to compete for some share of the bust
ness.
A factor in this arrangement was
that the initial shipper made the rate
for both land and sea. On business
going to the Orient the railroad made
the rate and got the lions share, ac-
cording to the understanding of ship
pers. On business coming from the
Orient the Pacific Mail Company made
the through rate, of which it got
remunerative portion.
This arrangement, it is said, worked
satisfactorily until the Interstate Com.
mcrce Commission insisted upon know
ing exactly what proportionate pats
of these rates the transcontinental raj
roads were getting, and how their share
of such transpacifc rates compared
with their domestic rates for carrying
, the same kind of freight the same dis
| lance on the same rails between points
J in the United States.
"The public at large has no idea of
: the amount of freight that goes from
this country to the Orient by way Of
the Atlantic ocean and Suez canal,''
said Mr.. Schwerin yesterday. "Ws
always have been in competition with
the Suez route, and practically all the
freight going by that route is carried
in foreign bottoms-mostly German au.l
British vessels-and they all are sub
sidized.
"Owing to their subsidies they are
l able to allow the railroads bringing
them freight from points in the inte-
a rior, like Chicago and Pittsburg, full
interstate freight rates. AS conse-
I quence the Interstate Commerce Com
! mission never has had any opportunity
8 to interfere with through ratings from
3 interior points to the Orient via the
L Atlantic and the Suez canal.
!. "Another thing, the crews of those
3 ships are all Singalese and Koreans, and
3 the low wages paid to them figure in
3 the low rates. So our competition with
2 the foreign vessels on the Atlantic sea-
2 board, with their cheap crews and gem
8 erous subsidies, always has been a hard
0 proposition.
Fight for Every Cargo.
< son the Pacific ocean also we are in
/, competition with two strong lines, both
!. subsidized by their governments, and
4. we had to fight for every bit of freight.
< AS long as we could cooperate with
y our transcontinental railroads, on the
basis of the initial shipper making the
= through rate, we have been able to get
/, a share of the business But the new
(, rule of the Interstate Commerce Com
+, mission makes it impossible to con.
=, tinue ON that basis.
. "Suppose hundred pounds of ma.
n chinery is being shipped from Kansas
INitJ " oh thtouBh fatC.
The Interstate Commerce Commission
4 requires the railroad hauling that
:, freight from Kansas City to this port
/, to publish its share of that through rate,
and at the same time requires the rail-
. road to publish its domestic rate for
. hauling from Kansas City to San Fran
N cisco or nearby points another hundred
!. pounds of the same kind of machinery.
< NATURALLY the railroads decline to do
that. Anyone can see what the result
ultimately would be. If the railroad g
4, portion of through rate to the Orient
. should be found to be less than the
: railroads domestic rate on the same
), kind of freight, domestic shippers inn
mediately would clamor for the rail
: road IS lower figures ON export business.
g sit is no wonder that the railroads