The San Francisco call., 1910-06-12
RUIN OF RIVAL
FORESHADOWED
BY SEA Fight
New Company CrippIes Fleet of
Bates & CIlesebrOugh and
Cuts Rates
Victims of Move Say That
Local Shippers Viii Sup-
port Their End of II

With the sole purpose Of putting out
Of business the firm Of Bates & Chese-
brough, 50 THAT shipping rates between
this port and New York can be raised,
y. S Bates charged yesterday that
the American -EIa waiian steamship
company had established a competi-
tive line 10 ply via the straits of
Magellan, clOaking its close affilia-
ton with the name Williams. Dimond
d Co.
As a preliminary TO the rate war
that win ensue the Dimond company
has taken over two of Bates & Chese-
hroUgh's steamers and has put up its
shinSle on the merchants exchange
board announcing its advent in the
field
Williams. Dimond & Co are the San
Francisco agents Of the American
Hawaiian steamship company AMI in
addition 10 this connection with the
big trans0ceanic line, Bates says. the
freight rates now being offered ship
pcrs indicate a direct attempt TO take
the traffic away from the owners of the
clipper line.
TWO SHIPS CHANGE OWNERS
The steamers J. L. Luckenbach and
Lyra, now of the Bates & Chese-
brOugh feet, VIII deliver their present
consignment and then go into the serv-
ice of Williams DimOnd q Co. The
change came when the clipper owners
sought TO renew their contracts with
the owners of the steamers. They
were overbid by Williams. Dimond &
Co. and both steamers were chartered
10 make their return voyages for the
new firm.
Bates x Chesebrough have been the
only shippers operating a line around
South America in the domestic trade.
The principal advantage of this route
is that there is no rehandling of car
goes before the destination is reached.
Bates SAYS that this feature and the
rates offered have resulted in traffic
swelling until the 100 600 tons per an
mum mark was passed and the business
Of the American-H Hawaiian line via Te-
huantepec isthmus was effected in vol
ume.
FLEET - SUPPLIED
According to Bates. the big company
then started n by cripplng the fleet
Of the clipper line by taking two of
its steamers, and is now following up
that move with sweeping reduction in
existing rates, a reduction which Bates
Tehuantepec charges.
"A powerful corporation like the
American-H Hawaiian company, worth in
The neighbOrhood Of fifteen millions
said Bates, 'can afford to maintain
ruinous rate indefinitely. even at great
loss, If il believes the trade in its en-
tiretv will ultimately come to it.
BY the very first move made 10y the
new line ii is beginning operations at
of 1af fc
in the price it must have chartered
our steamers for.
after a canvass conducted by my
self among many of the large shippers
of this section I think / am justified
in stating that the competing line viii
not obtain the support of Ca lifornia
shippers 10 the extent of material
damaging our business. Businessmen
see in the move the hand of the Amer
ican-Hawaiian company to secure a
monopoly of the trade and later dictate
rates.
PACIFIC MAIE BUSY
The only other line that operates
between the points we touch at is the
Pacific Mail steamship company. but il
Is running at capacity, which in any
event is limited. so that it is clear the
move is directed only against us.
A $4,000 company such as ours is
could not hope TO successfully cope
with the American Hawaiian were it
not for the fact that those shippers
who have helped us to build up a busi-
ness of 1905 eco tons Of cargo annually
have assured Us they viii continue their
support To them it is evident that
once the American-Hawaiian succeeds
in forcing as from the field it will not
continue q service in direct competition
with its trans-Tehuantepec route. un-
Jess the shipping rates of the latter are
adhered to.
There is no legitimate reason for
cutting rates in opposition TO itself.
for II has not enough freight to keep
Il busy on its other line The Williams
Dimond company is its San Francisco
agent. so the move is palpable one"