The San Francisco call., 1909-02-16
SCHWERIN TRIES
TO INTIMIDATF
ISTHMIAN ROAD
Threatens ReprisaIs if FavOrS
Are Granted Independent
Steamer Line
Announces Plan TO Defect COf=
fee Trade From Panama to
Tehuantepec Road
ffarriman's Man Makes Last
Effort to Maintain Trans
pOrtatiOn Monopoly

pOrtdtl0n NlOnOpOly
:. - %Advices from Washington brought
the information yesterday that R. P.
= schwerin. vice president and general
= 'iYnanage- Of the Pacific Mail steamship
company, had, threatened reprisals
sagainst the Panama railroad in case
.:any. favors were extended to the in
dependent line of steamships which
tl1e- san. Francisco merchants propose
10 establish. Schwerin has endeavored
50. Use the coffee trade as q club and
he h8s announced that he will defect
st 10 tire isthmus of Tehuantepec IN
Jess given protection" by the Panama
. .Taltroad, This trade is said to be
! @gorth $500, coo year.
=. She activity OF schwerin is prompted
by. the desire Of E. H. Hartman to
. ;lnslntain his monopoly on transporta-
- .r}op from. san Francisco. He controls
@le Pacific Mail company and has used
.si1 as a: buffer. rather than as a real
useful carrier. At Harriman's dicta-
.-tieR,. Sc1pTerin, began his campaign as
aoen: as: it was announced that H. S.
: Bates had. gone TO washington TO make
:srfangements for the independent serv-
Ice. Schwerin followed in Bates foot
E 81 ops. and has vigorously opposed every
move made For the relief of the local
-$lIippsrs.
scHWERIA'S FINAL EFFORT
-: Eya ties has returned to San Francisco,
I. , IL ~sclrwerih tarried at the national
+ c.aI.It43 10 make a fnal effort to
= tl4Rsart the SAN Francisco businessmen.
..z.fter Bates had made an agreement
with. the Panama railroad and the
5'aq1ama steamship company, both owned
1y- i Ire. United States government, by
=. 81 Eieh the. independent line could be
..ass9red.:of proper connections and the
aeeessatE rates. Schwerin went before
the men in control of the federal lines
ana demanded protection" AS an
4tiJaa tlIrr he let 1t be known that un-
: less the Pacific Mail was left unmo-
p. .<ested- he. would give battle to the
.lstl{naie.n route by shipping over the
TeiuaJgfepec railroad.
2: Bates. il appears, had been aware of
D. llfsaL c--rlNerln was Following
70 lriTal LIr.1he east. His report to be sub
= rl}tted TO. the local shippers will show
that: le ihas. taken into account the ac-
.. :riTlties of the Pacific Mail. He has
b called a meeting of the Interested ship
pers- 1o1: THURSDAY, February Is. in
the roDms Of the chamber Of commerce.
when Ire Wiu set forth in detail just
.-sYhat lie. hopes 10 accomplish. At that
lpeetfng the Projected line viii be dis
1cUssed; and If enough capital is willing
=. TO GO o-opsrate il viii be established
withogt delay.
. REPORT COVERS SUBJECT
Bates said Yesterday that he did not
desire. 10 :enter into any controversy in
regard 10 the action OF the Pacific Mail
end referred TO his report as amply COW
s-elifrg> the gtoubd on this subject
r.. r. laye looked. into the matter very
-f5Oroughlv,' said. "and viii submit
nay REPORT az the meeting called for
'l.l 4rsday. I do not wish TO appear as
ma king any predictions as TO this serv-
Ice, but. I believe that If the shippers
60 QpeE rate an Independent service can
:: lie maintained a existing rates. 1t will
:: cepend largely on the shippers. II they
are willing to stand by this line and not
be drawn 10 other steamship companies
!: by low rates that may be temporarily
established, j think il could be made a
s5sccess."
:. fine report to which Bates referred
showed that the Pacific Mail had in
- reality carried comparatively little
freight between san Francisco and New
York. During the year 1903 II carried
=. from San Francisco for New York but
1s 900 tons. During the same year it
carried to San Francisco only $4,000
4 asls OF freight originating in New
:t-ork. Its purpose was merely to hold
tho seas against competition with the
.ttansconunental railroads
GOOD EAST BOUND TRADE
- TIE company has an east bound trade
Of some dimensions, however, between
:the ports OF Mexico and Central Amer
sica and the gulf and Atlantic ports.
:Out or this traffic the Panama railroad
sand the Panama steamship company
have received $500, 600 a year Ii is the
loss OF this sum that Schwerin threat
!: eled.
Iii has long been understood: however
=. that the Pacific Mail works on CONNER
cial and not sentimental lines. For thar
p. reason II is believed that it would have
given its trade to the Tehuantepec line
aQng before this were not the isthmian
route to its advantage. At any rate its
threat is not taken seriously in san
= francisco.