The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1910-03-18

Washington, March THE investi-
CATION into the contract now existing
between the United states government
and the Pacific Mail Steamship COM
pany is disclosing some very startling
facts.
The government now owns, I'm addi-
ton TO the Panama railroad the Pan
anna Steamship company, which OPP
crates a line of boats from Colon TO At
lantic coast ports in the United States.
II was for hauling freight and passen-
gers from Panama across the 18TH
mus on the railroad and up TO New
York and other ports by boat that the
United States received so per cent Of
the transportation charges around
from Pacific coast ports to Atlantic
coast ports and for which it now re-
ceives 80 per cent
Senator Bristow called the attention
Of the senate committee 10 the advance
and asserted that it was up 10 Secre-
tary Dickinson to explain matters. Mr..
Bristow called b. y. Baker, a Balti-
more shipbuilder before the commit
tee To tell how he offered to put an in
dependent line OF vessels on the Pa
cihc coast 10 take the place OF the
Pacific Mail line, and handle Panama
traffic at less than the old rate. and
was turned down by Secretary Dick
inson. His charges very naturally
caused the secretary of war to prepare
a defense
He came before the committee this
week prepared 10 clear himself from
the charge Of unfairuess. He began by
declaring that President Taft was con-
suited by him. and that both Of them
agreed that the government would
have 10 be "held up by the Pacific
Mail line
He said shortly after he became
secretary OF war the management Of
the Pacific Mail lire had made de-
mand Of a 20 per cent increase as
their portion Of the joint rate.
The Pacific Mail had threatened to
withdraw its ships and IL this had
been DONE he said, 1t would have
left the government line without an
outlet on the Pacific coast.
IF the ships on the Pacific side had
been Withdrawn I feel that my posi-
ton would have been indefensible. and
therefore l was forced TO accept the
terms offered by the Pacific Mail" said
the secretary.
Il consulted with the president who
knew more about the canal affairs than
] did, and we were not willing 10 take
the risk of calling the Pacfc Mail
Steamship company's bluff"
Did you ever make an investigation
20 determine whether the Pacific Mail
is controlled by the transcontinental
lines?' asked Chairman Flint.
Mr.. Dickinson replied that he had
seen President Schwerin OF the Pacific
Mail only once, and they had had an
unpleasant interview. Schwerin in
sisted. he said. that his steamship line
was independent Of the Southern Pa
cihc, and upon that point they could
not agree.
The secretary took the position that
an exclusive contract would reverse
the whole policy Of the government,
and that any government official who
would countenance g would be taking
an enormous responsibility.
Asked 10 reply % the charge made
by Baker that he had rejected the
Baltimore shipbuilders' proposal to put
in an Independent steamship line, Sec
rotary Dickinson produced the pro-
posed contract % show his under
standing Of the offer. II indicated
that the company was TO have an ex-
elusive contract and many other favors
that Mr. Dickinson said could not be
granted under the authority vested in
him or any other member OF the pres
idents cabinet.
"The government" he said again
had practically been coerced by a Sc
rious situation into conserving to the
demand OF the Pacific Mail for 20 per
cent Of the point rate"