The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-03-01
IT'S BLUFF WORKED
IN NIFTY MANNER
Pacific Mail Threat Was Too
Much for Secretary
Dickinson.
EVEN PRESIDENT Baked
DID NOT WANT TO TAKE CHANCE
OF HAVING THE GOVERNMENTS
WESTERN COAST OUTLET EN-.
TIRELY CLOSED UP.


Washington, March 1.-Secretary of
War Dickinson proposed that the anti
trust law be invoked to break up the
monopoly which the Pacific Mail and
the Hartman Transcontinental have
of business between the Pacific Coast
ports and the Isthmus of Panama.
When it was suggested that suit UNI
der the Sherman law might fail be-
cause of lack of proof that the steam
ship company, operated as an indie
pendent line, would be considered a
competitor of the Southern Pacific
railroad, members of the senate COM
lnittee on interoceanic canals discuss
ed the ACCESSIBILITY of recommending
legislation that would reach the merg-
er.
The hearing yesterday was held in
order to give the Secretary of War
opportunity to answer the criticism of
Senator Bristow that the government
railroads by not urging the establish
ment of an Independent line on the
Pacific Coast as proposed by H. N.
Baker, of Baltimore
Secretary Dickinson produced the
proposed contract to show his under
standing 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 grant
ed under authority vested in him or
any other member of the presidents
cabinet.
BIuffed by Pacific Mail.
The statement had been made by
Mr.. Dickinson that he had practically
been coerced by serious situation
into consenting to the demand of the
Pacific Mail for 20 percent of the joint
rate. The Pacific Mail had threaten
ed 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been withdrawn I feel that my posi-
ton would have been indefensible,
and therefore I was forced to accept
the terms offered by the Pacific Mail"
said the secretary. Il consulted with
the president, who knew more about
the canals affairs than did, and we
were not willing to take the risk of
calling the Pacific Mails bluff
did you ever make an investiga-
ton to determine whether the Pacific
Mail is controlled by the Hartman
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 insist
ed. he said. that his steamship line
was Independent of the Southern Pa
cific. and upon that point they could
not agree.
Too Great Responsibility.
The secretary took the position that
an exclusive contract would reverse
the whole policy of the government,
and that any government official that
would countenance it would be taking
an enormous responsibility.
Several senators pressed the secre.
tary for his opinion of the surest way
to break up the Pacific Mail mono
poly. He said the surest way would
be for the government to build ships
and operate them. but he would not
say that such a course would be the
wisest way. He said that the cues
ton was a legislative one, and he did
not care to indorse government own
ership.
I'VE sent for you to tell us what to
do" said Chairman Flint. '"That,
think, is what you would do if you
We're senator"
Probably we have been trained in
different political Schools said the
secretary, but l have never believed
it was the duty Of the government tc
furnish means of transportation.
have not believed it wise for the gov
eminent to engage in that business
which can be best done by indiyidu
ais"
No decision was reached on this
subject and Secretary Dickinson lef,
the stand after saying he would in
vestigate the whole subject of mai
contracts. chartering of steamships OF
any other means of meeting the situa