The Hawaiian gazette., 1915-01-19
.COASfRATEsRA|sED.
.T0MEETsH|PC COSTS
Panama Service First Based Too
Low Says President Of
American-Hawaiian Line
,(FrOn Monday Advertiser, )

HIF y " -r1-1 ~ = y ~ ~ -
IL has cost mors than was anticipated
10 operate The ships Of the American
Hawaiian steamship Company in the
coast-to-coast service using the Pan,
ANA Canal This Is the reason, says
George s. Dearborn, president Of the
company, for the advance In rates, and
not any combination between steam.
ship companies engaged In the trade.
Mr.. Dearborn says:
tour original rates were experiment.
al and placed on a low. scale. We could
not determine at the start whether
they would be sufficiently remunerative
TO pay for the cost Of operation. This
we have found from the experience Of
the ave months has been more than
we anticipated.
An Evsntful Year
Z q Altogether II has been very event
ful year for the American Hawaiian.
In April we had to withdraw from the
Tehuantepec ronte prematnrely owing
20 the Mexican troubles and the land
ing Of the American troops at Vera
Cruz. As there was no other trans.
isthmian line available, we had to re-
sumo our old service by way Of Ma
gellan until the canal opened. This
was from May 1 until the middle Of
August. We were able to divert the
ships on the way, and managed to get
"A little freight passed through the
canal on barges Of the Panama Rail.
road. .E@ AZ,
pSince the opening Of the canal we
have used II continuously with twenty
steamers of our feet. The cafgoes
have been satisfactory both ways, but
the quiet business in the East prevent,
ed any exceptional cargoes, and i'm
provement in the west-bound move.
ment only began as money became more
easily obtainable in December. In the
east bound traffic the cargo offering was
plentiful, but We had the competition
of twenty-five steamers Of tho other
lines.
Six Steamers Chartered
"Some little delay was caused by the
slides in the canal but no serious in,
terruption has taken place. The bigger
ships grounded on the mud bottom of
the canal, but never 50 seriously as to
require drydOeking beyond the ordinary
overhauling. 3a.
"Six of our steamers have now been
fitted with refrigerating equipment up
to 1900 tons capacity, so that they can
carry Californian fruit. spFf
x Gin the Hawaiian trade there are
prospects Of q large pineapple crop and
larger shipments Of sugar.
There has not been strong enough
demand to employ all our ships in the
trade, and we have consequently char;
tered out six Of our steamers. Two
have been engaged in South American
trade, two others have been chartered
for carrying cotton to Europe and two
others for carrying horses across the
Atlantic. - 4, NJ ( a $ &. =
Concerning the ship purchase bill
President Dearborn said II seemed 10
him that nothing could be accomplish,
ed by the plan proposed that would
give the relief expected under the cir
cnmstances. IL the ships were to bs
built this would require TOD much time
The purchase Of ships narrowed itseli
down TO buying the German vessels
that were laid up here. IL they were
made over to private ownership It was
clear that underwriters would charge
higher rates to meet the war risks Il
which they might be subjected. ~