The Detroit times., 1910-12-17
TORS out Of business by. reduclng

petitors out OF business py reuue'"s
the rates 10 suit itself. =
What percentage OF the ois
freighters now tow with the Great
Lakes Coz" was asked.
Il suppose they all do" Mr.. Weine-
man replied. but the answer was
stricken out
MAYNARD Hagedon. who Is In the en-
ploy OF Congressman Henry McMoi
ran. in Port Huron. took the slaho
lust before the noon recess. lie iueh
titled a contract entered into between
the Great Lakes TowOing Co. ana the
lines owned BY Mr.. McMorran, cover
Ing the wear 1900 Attached TO- the
contract was this foot note, signed oy
the Great Lakes Co:
We further agree that. In case
this proposition is accepted and
the bills created under II shai
exceed the tariff OF other tug lines.
we will rebate and repay you any
such excess. ~,
The clause is countersigned by w,
A. Collier, general manager
The McMorran lines had contracts
with the Great Lakes people until lsos'
when the latter refused 10 renew the
contract. thus depriving the McMor-
ran lines of the discount. IL was
this action on the companys part
that led TO the starting OF the present
suit Mr.. McMorran had had trouble
with the company in connection WIN
the wreck OF the Newago, which ex'
plains the latter's refusal 10 issue
new contract. Mr.. McMorran made
comnlaint in Washington and William
L. Day. United States district attorney
i'm the northern district OF ONO, was
detailed TO investigate. He did So ana
ON the strength of what he discovered
recommended that the Great Lakes
company be prosecuted under the
sherman law Hence the present SUIT
The hearing will be completed Tor
the time-being Saturday AFTERNOON out
will be resumed Wednesday morning
and will probably take up the balance
OF the week.
f b. Hackett. the well-known Am
herstburg tugman, gave some inter-
esting testimony concerning his eh
periences with the towing trust, FRI
day afternoon. He declared that 70
per cent of the boats coming up from
Lake Erie had contracts with the
Great Lakes Co. He told how the
stifY competition of the alleged trust
had led him and his brother, DR.. q.
G.. Hackett, now Detroit dentist, 10
enter into a contract with the treat
Lakes people in 1905. whereby the
latter were to have entire controi Oh
the Hackett tugs, fixing the rates Tor
service and giving the Hacketts 10
per cent of the proceeds. the hac
ketts TO pay all expenses. me
Hacketts' share dwindled TO less than
half the scheduled charges, however,
after the expenses had been taken
out by the trust, in addition to the
% per cent 1t kept for itself, turned
back rebate of 20 and per cent
TO the vessel owners.
The contract arrangement proved
so improbable that the Hacketts re-
fused to renew il at the end OF the
first year, the trust standing out
against any concessions. Subsequent
ly Mr. Hackett built the modern tug,
"Hackett," which he figured would
put him In a better position TO meet
trust competition. but frequently
when he would go TO the aid OF a
stranded vessel, the captain would
refuse to employ him, preferring to
wait for one of the trust tugs. His
testimony was supplemented by that
OF DR.. Hackett. which was largely to
the same effect.
On the cross-examination OF F. h.
Hackett. Attorney Goulder brought
out that independent wreckers are at
work on the steamers Richardson
and Moreland, now on the bottom
but Mr. Hackett declared that the
trust tugs had first worked on the
wrecks and had abandoned them.
Martin Swayne. formerly of the
Swayne Wrecking Co, Cheboygan,
testified that his company had been
bought out by the Great Lakes Co.
He could not give the details OF the
transfer, he said, as Parker Bros, OF
Detroit, who largely owned the boats,
closed the deal.
Robert 0. Thompson, now Of the
Thompson Tug Co., Port Huron, told
how he had formerly tried to buck
the trust at the 500, with one boat,
and had lost out after one season.
The Maytham Tug Co. also tried 10
compete with the trust at that port,
he said, but with no better result.
Mr.. Thompson, at one time was man
ager for the Great Lakes company
at the 500. Ships that had contracts
with the Great Lakes company were
given the advantage of reduced rates.
he said. while those without contracts
paid full price. The trust usually
beat out the other tugs in the scram-
bic for the non-contract boats be-
cause OF their superior facilities and
more powerful engines.