The San Francisco call., 1909-02-12
Bates Discusses Project

Bates Discusses Project
After consultation with numerous
ship owners and freight forwarders
and others with a knowledge Of the
business I am Of the opinion that pro-
vlded interest in the new line could be
divided throughout the community,
particularly among interested shippers.
and guaranteed capital Of say
s250.OOO procured. the new line could
be established and with the co-opera-
ton Of shippers be made a paying
proposition long before the Completion
Of the canal"
It is estimated by Bates that an aver
age rate Of something over s1L7o a
ton must be paid on cargo from San
Francisco to New York in order TO al
low the government TO meet expenses
on its part Of the haul. For carrying
the cargo by rail across the isthmus
and from Colon by boat to New York
the government would receive so per
cent OF the through rate. This rate is
below the present steamship tariff and
e big cut under the rail schedule.
For the present the government would
be willing TO assist the independent
line by DETECTING to it where possible
the haul from the isthmus to San Fran
cisco on westbound freight Bates ex-
pressed the belief that a profitable
trade could be built up between Pacific
coast points and Galveston. New Or
leans. Mobile and other gulf and south
Atlantic ports. He figures also that a
trade for California products could be
arranged at Panama
Assistance Offered
Bates opens his report by telling Of
the assistance rendered him in Wash
ington by William r Wheeler. He
mentions also that he found Secretary
Of War Wright, who has control of
canal affairs, willing and eager to assist
the California shippers Bates re-
ouested Wright to make a new division
OF the rate giving the proposed inde-
pendent line IS PEI. cent of the through
traffic. This was found impossible IN
der the agreement Of the United States
government TO maintain an open door"
policy for all nations across the 18TH
mus, giving all lines like treatment.
Speaking Of a possible advantageous
arrangement. Bates says:
However. the secretary OF war did
our cooperating dispatch line be-
tween san Francisco and La Boca, the
Panana railroad company would divert
20 our. lire all freight carried from
New York and consigned TO San Fran
cisco which might not be specially
routed via Pacific Mail This agree
ment was made with the idea of fur
thering the interests Of both shippers
and consignees and would only hold
good in the event Of the Pacific Mail
or other competitors Of the proposed
new 'line not putting on a direct ser
vice. Further. that if a second or third
dispatch service be put on. in CON-
petiuon with the new line, the freight
would be forwarded by the first vessel
leaving La Boea."
Fact and Figures
After speaking of the high port
charges Of SI.Z5 per ton at La Boca
and the general cost Of service. Bates
proceeds:
Il am assured that the cost to the
government OF hauling cargo from Co
Ion to New York is not over $3.50 per
ton, which. added TO the railroad cost.
would mean that an average rate of
something over s1I.7o must be paid on
cargo from San Francisco TO New York
through its so per cent equity. to come
out even These figures are. of course.
based on the assumption that the Pa
cifc carrier can operate at a minimum