The San Francisco call., 1909-11-07
Steamships Operating on Coasts,
Rivers and Lakes Owned by
Supposed Competitors
Reports From ALI Parts of Coun-
try TO Local Bureau Show
Domination Complete
Congress VIII Be Asked to End
Combination of Two Classes
of Carriers

THAT the steamship companies op-
Grating on the coasts, the rivers
- and the lakes of the United States
are under the complete control OF the
railroads has been revealed through an
investigation begun by the local traffic
bureau This domination is so wide
spread that it has practically nulIifad
water competition. The conditions to
which this relationship has given rise
arc regarded as so grave and of such
deep concern to the national govern
nent that congress viii be asked TO
intervene
While # has been known in a gen
eral way that here and there the rail-
ways dominated the waterways never
before has it been shown that this
exercise OF authority stretched from
the Atlantic to the Pacific, from the
lakes 70 the gulf. lacing the states
along the navigable water courses.
Competition ThrottIed
The facts have been assembled by
william r Wheeler. manager of the
traffic bureau OF the merchants ex-
change. He struck the first note CT
warning IN his annual report few
weeks ago when he cited, this growing
danger. AS a remedy he proposed that
congress should prohibit the owner
ship OF railroads OF competing water
carriers.
wheeier's suggestion has been given
ready response throughout the country.
II found echo IN St Louis, CAL
weston. Chicago, Baltimore and New
York. From every important center |
came the same complaint-that water
competition had been throttled by rail-
road control Of the river. lake and
ocean carriers. 4
The proposal that the rail carriers
be barred fom the competitive water
traffic has found ready acceptance. In
fact the matter has been deemed Of
such pressing Importance that it is to
be taken up by the national Industrial
traffic league at its session in Chicago
November IL
Opposition Is Crushed
The national industrial traffic league
is the central organization of she
traffic associations in the United states
and represents the interests of the
shippers in nearly every state in the
union.
The reports from the east and south |
tell Of the same conditions that obtain |
on the Pacific. The railroads maintain
their own steamship lines both on the
sea and the rivers in order to keep the |
rail rates high above the natural figure.
From the shipping league of Baltimore
came the following:
''The coastwise traffic, as far as The
east coast is concerned, is absolutely
and entirely controlled by the COM
petitive railways, and they do not hesi-
tate, II an attempt is made to put on
any steamers. to crush them out with
out any consideration whatever"
Chicago Traffic Controlled
The Chicago association Of commerce
has reported to Wheeler that .he
traffic of its waterways is under The
thumb of the railroads Here is the
statement Of the association:
All except about 35 canal boats in
freight service on the Erie canal are
now under direct control Of the rail-
roads. The canal boat owners are or
ganized into union and there is much
to support the claim that this
union acts in harmony with the rail-
roads. refusing to have any dealings
whatever with independent lake boats
that seek to give a through lake ana
canal service in competition with the
rail owned lake lines.
You, of course, are familiar with the
fact that all the coastwise steamship
lines, except the Clyde line, operating
from New York, Boston, Philadelphia
and Baltimore to South Atlantic points
are owned and controlled by the rati-
ways: that the Morgan line of steam
ers, operating from. New York to Cal
weston, is a part of the Southern pa
cihc system and that there is every
reason 10 believe that the Mallory line
is merely an alleged competitor of .he
line
Railroads Dominate Canal
The letter concludes with the sug- :
gestion that the railroads be forbidden
10 operate steamship lines except as
an aid toward reaching desired destina-
tions. This is in accord with wheeler's
view and would prevent the ownership
Of steamer lines merely to nuilify COM
petition.
The Chicago association calls stten-
ion to the report Of the Chicago har-
Dor commission for 1903. This report /,
points out at length how the railroads
control the lake traffic. or the Erie I
anal traffic this report says:
But. it viii be asked. what about