New-York tribune., 1907-01-31
STEAMERS.
Relations scith Pacific Mail En-
planned by General Manager.

San Francisco Jan. 30.-At tO-day's hearing of
the Hartman merger case before Interstate
Commerce Commissioner Lane. W. A. Bissell
assistant traffic manager OF the Santa Fe system
and director in the Western Pacific Railroad
conceded. under OATH that the Santa Fe and the
Southern Pacific managements observing
unwritten agreement, whereby they share about
equally the citrus fruit traffic of Southern Cali
fornia. each scrupulously avoiding any intru-
sion into the others territory after the fruit has
been packed
r. a. Graham. OF New York. formerly man
ager of the Oregon Oriental Steamship Company,
agreed 10 produce evidence letter which he
testified, he had received from Benjamin Camp
bell. traffic manager Of the Oregon Railroad &
Navigation Company. peremptorily cancelling
traffic contract between the two companies be-
cause the latter road had acquired fleet of
steamships. and refusing longer 10 give Graham's
company traffic or the OF the Oregon Rail
road & Navigation Company's piers at Portland
or rail rates other than the full local traffic
r. p. Schwern. general manager OF the Pa
ciio Mail Company. testified that besides tho
feet OF steamers owned by the company. the
Pacific Mail operated the Mongolia and the Man
churia, which are owned by Hartman person
ally and that Hartman charged the Pacific Mail
$4,000 a month for the OF the steamers. the
money being sent to New York
Mr.. Schwerin testified that the San Francisco
and Portland Steamship Company. OF which he
is president. had recently increased steamship
rates. and that at the Same time the Southern
Pacific raised its rate TO Portland. Commits
sioner Lane brought out the fact that the raise
of steamship rates followed a conversation
the subject with Traffic Manager Luce Of the
Southern Pacific.
Mr.. Schwerin volunteered the statement that
there was no real competition between the rail-
tho he sta GIVE
better service and get more freight than they
can handle without solicitation. This statement
he aeterward modified applying only pres
ent temporary conditions.
Mr. Harriman's lawyer. r. c. Lovett. then
took Schwerin in hand. He explained that the
basis for the difrerental between railroad and
steamer freight rates is the additional security
OF rail transportation. The dfferential is 60
cents a ton, which Commissioner Lane seemed
to regard too great
The discontinuance Of the Santa Fe's trans
pacific steamship line out OF San Diego and
Schwerin's alleged efforts 10 induce Paul Nor
ton TO give the Pacific Mail the Santa Fe's
freight business were next adverted to by At
torney Lovett.
Mr. schwerin said absolutely that no CONVEX
sation OF his with Paul Morton was responsible
for the discontinunnce of the Santa Fes San
Diego Line The service was stopped because IL
did not pay, and the Pacific Mail afterward got
the freight business through mutual arrange
ment for the exchange OF business.
Mr. schwerin stated that all transpacifo
freight could be moved without coming TO San
Francisco at all. owing to the railroad facilities
on the north. The Pacific Mail is willing TO
make concessions 10 get Santa Fe business. he
said and for this purpose also Il makes
through freight rate from Hong Kong to Chi
cago -
Mr. schwerin said that he did not consider
Mr. Hartman, or the Southern Pacific. in
deavoring 20 get business His freight arrange
nents with the Southern Pacific he made with
J. G. Stubbs and he said Hartman had moth
ing 10 do with them.
Inquiries into the affairs Of the Portland and
Asiatio Steamship Company. belonging to tho
Oregon Railroad & Navigation Company.
Hartman property. developed the fact that its
| monthly steamers are operated at a loss and
have been for the last four years. except during
the o-Japanese War. The Oregon Railroad
and Navigation Company maintains the line to
hold its rail traffic This year said Mr.. Schwer-
in, the Pacific Mail has lost half a million dol
! lars II would lose like the Northern line every
year II it depended on freight: IT was the pas
senger business that made II pay.
General Agent Shotwell Of the Gould lines test-
fed that the business he was able TO get for
the Denver & Rio Grande and connecting Gould
lines was 80 per cent less than he got prior to
1901. since which year, he said, the Southern Pa
cnc has been devotng its efforts TO procuring all
the business II can for the Union Pacific, which
controls il. To this cause he attributed the
great slump In Gould business eastbound from
the Pacific Coast
Answering a question by Commissioner Lane,
witness said that he found the business obtained
by the Southern Pacific invariably goes to the
Sunset or the Union Pacific route. He thought
the Southern Pacific was neutral as between
these two routes. The test. he said, applied TO
both freight and passenger traffic.