No. 208.
Mr. Daggett to Mr. Frelinghuysen.

No. 153.]

Sir: I have the honor to inform you that the Pacific Mail Steamship Company’s steamers plying between San Francisco and Australia continue to deliver the public mails at this port, but decline all passenger and freight traffic between San Francisco and the Hawaiian Islands.

This singular proceeding is regarded with general dissatisfaction here, and is manifestly the result of some business arrangement between that company and the Spreckels firm, controlling the Oceanic Steamship Company. As the financial strength of the former forbids the presumption of coercion in the matter, it is probable that a satisfactory consideration has been the moving power, possibly to the extent of the subsidy of $2,000 per trip ($48,000 per annum) which the Legislature has been asked to vote the Oceanic Steamship Company. But whatever may [Page 288] have been the controlling motive or consideration, it cannot but be considered unfortunate for Hawaii that individual power has been found to be competent to so embarrass its commerce and choke its channels of trade.

I am, &c.,