Los Angeles herald., 1909-10-07
NO END SIGHTED
IN RATE FIGHT
ALBERT SCHUBACH SAYS THAT
He IS SATISFIED
WILL KEEP UP LOW FARES AS
LONG AS HE MAKES MONEY
Small Probability That Southern Pa.
clfic Will Take Hand in Battle
by Putting on "steamer
Trains"

ave are making money and, as
long as we continue to make money
we viii continue our present rates be-
tween here and San Francisco said
Albert Schubach of Schubach and
Hamilton, operators of the North "a
cific Steamship company. when
ever we begin to lose money we Will
raise our rates to a figure where we
can make money, irrespective OF what
any of our rivals may do. we are IN
the field to stay, but we are also In
it to make money"
Judging from the statements of Mr..
Schubach and his partner, William
Hamilton, who also is in Los Angeles
az present, the rate war on between
the North Pacific company and the
Pacific Coast Steamship company VIII
not cease for many day Mr.
Schubach declares he can operate his
three ships, the Roanoke" the st.
Croix' and the Elder" for one-thlrd
the cost of the operation Of any OF
the three larger ships Of the Paclhc
Coast company, and for about han the
cost of operation OF the smaller boats
He saws the smaller boats on which
the fare TO san Francisco is now
1885, are not in competition at all
TIE rate on the Governor and
president is S5.S5 the same as on
the three ships Of the North Pacific
line.
.coording 10 Mr.. Schubaeh the
president burns an average of 1l5
tons of coal & day This coal costs
about IS a ton. delivered under the
boilers. The st. Croix," one Of the
North Pacific line steamers, burns 200
barrels of oil day. at a cost OF about
90 cents a barrel. This would make
the fuel cost Of the President in
the neighborhood OF sS75 day as
against $3.50 a day for the "St. Croix."
The president has a greater Capac-
ity and, if filed every trip, the fuel
cost would be cut. However, the diff
ference in carrying capacity does not
offset entirely, the difference in fuel
cost. so that the est. Croix" always
has a shade the better of the fight.
Another thing which gives the North
Pacific company an advantage Is the
difference in the number of the crews
of its vessels Mr.. Schubach says his
ships carry a complement of half the
size of any of the Pacific Coast YES
sells. In other words, the entire op-
Grating expense of the North Pacific
vessels is half that Of the Pacific
Coast vessels.
Appeal for Aid 1
It is understood that the Pacific
Coast company has appealed to the
Southern Pacific company to aid in
the fight. The plan to put on what
are known as steamer trains" or
trains leaving at the same hour as the
steamers sail. beating them to the
destined point by many hours. When
the North Pacific company put three
steamers into the service and made
the low ra.e on each steamer, the
steamer train" plan was shelved.
In order to compete with the present
water rates between San Francisco
and Los Angeles, it would be neces-
s-ry for the Southern Pacific to make
a rate of less than So for the one
way trip. This would be ruinious,
and for that reason no marked reduc-
tion for the through fare probably
will be made. If the through rate is
cut, it will necessitate a change in
the entire local tariffs, something
which the Southern Pacific is loath
to do. 1t therefore seems unlikely
that any cut in the rail rates will be-
made now.