The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-03-04
BriStOw Calls on Secretary Dick
ins0n to Explain.
Governments Share of Panama
Traffic Charges Reduced.
PACIFIC MAIL LINE.
Threatened to Withdraw Unless
Its Terms We're Met.
The Government Was Afraid to
Call the Bluff.

Washington, D. c.. March 4.-The
investigation into the contract now ex-
fsting between the United States gov
ernment and the Pacific Mail Steam
ship company is disclosing some very
startling facts.
The government now owns, in addi-
ton to the Panama railroad. the Pan
anna Steamship company, which oper-
ates a line of boats from Colon to At
lantic coast ports in the United States.
1t was for hauling freight and pas
scngers 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 1t now re-
ceives 80 per cent.
Senator Bristow called the attention
of the senate committee to the ad-
vance and asserted that it was UP to
Secretary Dickinson to explain matters.
Mr.. Bristow called B. N. Baker, a Bal
timore shipbuilder. before the commit
tee to tell how he offered to put an
Independent line of vessels on the Pa
cif1c coast to take the place of the
Pacific mail line and handle the Pan
anna traffic at less than the old rate,
and was turned down. by Secretary
Dickinson. His charges very naturally
caused the secretary of war to prepare
He came before the committee this
week prepared to clear himself from
the charge of unfairness. He began
by declaring that President Taft was
consulted by him. and that both of
them agreed that the government
would have to be fheld up by the
Pacific Mail line.
He said that shortly after he became
secretary of war the management of
the Pacific Mail line had made a de-
mand of a 20 per cent increase as their
portion of the joint rate.
Threatened to Withdraw.
"The Pacific Mail had threatened to
withdraw it's ships, and if this had
been done.'' he said, "it would have left
the government line without an outlet
on the Pacific coast.
IF the ships on the Pacific side had
been withdrawn feel that my position
would have been indefensible, and
therefore was forced to accept the
terms offered by the Pacific Mail,'' said
the secretary.
''I consulted with the president who
knew more about the canal affairs than
did, and we were not willing to take
the risk of calling the Pacific Mail
Steamship company's bluff"
Did you ever make an investigation
to determine whether the Pacific Mail
is controlled by the transcontinental
Hnes?" asked Chairman Flint.
Mr.. Dickinson replied that he had
seen President Schwerin of the Pacific
unpleasant interview. Schwerin in |
sisted, he said, that his steamship line |
was Independent of the Southern Pa |
cif1c, 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 it would be taking an /
enormous responsibility.
Asked to reply to the charge made hv |
Baker that he had rejected the Balti- |
more shipbuilders' proposal to put in an |
Independent steamship line, Secretary |
Dickinson produced the proposed con
tract to show his understanding of the |
offer. 1t Indicated that the company |
was to have an exclusive contract and |
many other favors that Mr.. Dickinson |
said could not be granted under the au- |
thority vested in him or any other |
member of the presidents cabinet
''The government he said again, I
"had practically been coerced by a |
serious situation into consenting to the |
demand of the Pacific Mail for 20 per /
cent of the joint rate"
The Surest way.
Several senators pressed the secretary |
of war for his opinion of the surest way /
to break up the Pacific Mail monopoly. |
He said that the surest way would be for |
the government to build ships and op-
crate them, but he would not say that
such q course would be the wisest way.
He said that the question was a legisla-
tive one and he did not care to indorse
government ownership.
I'VE sent for you to tell us what to
do" said Chairman Flint. THAT, L think
is what you would do if you were SEN
ator.''
Probably we have been trained in diff
ferent political Schools" said the secre- |
tary, but nave never believed it was /
the duty OF the government to furnish |
means of transportation. l have not be- /
lieved it wise for the government to en-
gage in that business, which can be best |
done by Individuals
Before concluding Mr.. Dickinson pro-
posed that the antitrust law be invoked /
to break up the monopoly which the Pa
cific Mail company and the transcontinen-
tai lines have on business between Pacific
coast ports and the isthmus of Panama
When 1t was suggested that suit under
the Sherman law might fail because of |
lack of proof that the steamship company.
operated an Independent line would |
be considered competitor of the South
arn Pacific railroad members of the com
mittee discussed the advfsability of recon-
legislation that would reach the
merger.
and Secretary Dickinson left the stand
after saying that he would investigate |
the whole subject of mail contracts char
tering steamships or any other means of
meeting the situation.