The San Francisco call., 1909-02-07
RAISES RATES
BETWEEN CITY
AND NEW YORK
American=Hawaiian Steamship
Company Announces In
creased Tariff
Will Give Impetus to Plan for
Independent Line to the
ISthmus
Hartman Able to Prevent Real
Competition by Holding Key
to Coast Shipments

After increasing it's rates between
San Francisco and New York and sub
sequently announcing their eancelIa-
tion, the American Hawaiian steamship
company has finally authorized a def
mite advance in its tariff schedule. The
new rates will apply on about half
the staple articles that enter into its
trade. The increase will run from
cents a hundred on some articles to 10
cents a hundred on others.
The positive announcement of the ad-
vance was made yesterday by G. W.
Cook, Pacific coast manager OF the
company Cook admitted that the
higher schedule came as a sequence OF
the increase in rates by the transconti-
mental railroads.
This announcement will give an i'm
petus to the plan TO establish an indie
pendent steamship line between San
Francisco and the isthnus of Panama
The American Hawaiian line operates
from Pacific coast points to New York
by way of the Tehuantepec railroad.
There is an exclusive contract by which
the railroad transports to the Atlantic
side all freight delivered at the Pa
cifc terminal by the American
Hawaiian, company.
HARTMAN HOLDS KEY
1t has been stated that z. H. Har-
riman has procured an interest in the
Tehuantepec railroad. and thus holding
the key to coast shipments by that
route has been able to prevent real
competition with his transcontinental
railroads. This report has never been
confirmed, but it has been popularly
supposed, on the face of conditions, that
Hartman had reached an understand
| ing with the ACKNOWLEDGEMENTS COM
pany.
BE all this as it may. the shippers
of California have come to the con-
clusiOn that they can bring about real
competition with the Hartman lines
| only through the establishment or an
independent or a government owned
line of ships between the Pac1nc coast
and the Panama railroad
The traffic offered the American
Hawaiian company is more than II can
we'll accommodate 1t has taxed the
capacity of the Tehuantepec railroad
In order to facilitate the movement
of freight that line Is now making
plans to transform its double track
system into a four track service.
EXPECT MORE TRAFFIC
II is apparent that the owners OF the
Tebuantepec railroad expect to handle
an Increasing traffic. for $65,0O0.oO0 has
been expended recently for terminal
facilities.
The railroad is owned Jointly by pri-
vate interests and the Mexican gov
ernment. 1t is a portion OF these private
interests that Hartman Is said TO nave
secured. but in any event the Mexican
government holds the upper hand. The
| largest private owners are S. Pearson
| &. Son. Sir Weetman d. Pearson is
nresident and maintains his of1ce at 4o
/ Lime street, London John 3. Body.
the vice president, has his office in the
CITY of Mexico. The line is 1SS miles
long, with a Pacific terminus at Sahna
Cruz and gulf terminus at Coatza-
coalcos.
PAN-AMERICAN FIGURES
The Tehuantepec connects with the
Pan-American road at San Geronimo.
1t is generally understood that Harri-
man owns the Pan-Amertcan, which
eventually will give him road from
Seattle to Panama The extension OF
the Southern Pacific in Mexico is des-
tined ultimately TO connect with the
Pan-American.
BY this it may be seen that Hartman
has figured either on joint control of
the Tehuantepec or an alliance with It
For the Pacifc-Atlantic traffic. the
American-Hawaiian steamship com
pany has come to rely upon Its Te-
huantepec connections. With an inter
est in the Tehuantepec, Hartman
company for the through rates can be
quoted only with the approval OF the
Tehuantepec line. All shipments from
here to New York move under quoted
through rate. There is no division OF
the tariff for steamship and rail service
REASON FOR INCREASE
In discussing the matter last night
C. w. Cook. Pacific coast representative
Of the ACKNOWLEDGEMENTS company.
said that his understanding was that
the Mexican government and not Har-
riman controlled the Tehuantepec line.
He answered the criticism that the
American Hawaiian company had raised
its rates with the statement that the
government lines running to Panama
had done the same. The government
has based its charge on the through
transcontinenta1 railroad rate. The
government has quoted a through rate
from san Francisco to New York 80 per
cent under the transcontinental rate on
carload lots and 40 per cent under the
railroad rate on less than carload lots
This rate it shares equally with the
steamship company transporting the
freight between Panama and San Fran
/ CISCO When the transcontinental
roads advanced their rates the govern
ment rate advanced automatically.
| As an Illustration OF the differences
between the transcontinental rates and
the American Hawaiian rates. Cook
cited the tariff on lumber II is carried
by the transcontinental railroads from
Pacific coast points to New York at
about s26 per 1000 feet. The bare rate
/ bv the steamship line is $11.25, but the
necessary additions for transferring
cargoes bring it up to SIS per 1000
feet. This is about the ratio through
out the list
The increase by the American-Ha-
1 waiian company covers practically the
same articles on which the railroads
raised their rates.