Los Angeles herald., 1910-03-01
PLAN TO BREAK
S. P.-STEAMSHlP
COMPANY TRUST
War Secretary Suggests
Sherman Act to Dis
solve Monopoly
FEDERAL LINE URGED
Dickinson Says Steamers
Operated by us. Would
Dissolve Merger
ASSOCIATED Pressl

WI ASHINGTON, Feb. 2S.-Secretary
wv of War Dickinson today pro-
posed that the antitrust law be
invoked to break up the alleged mo-
nopoly by which the PACIFIC Mail
Steamship company and the Hartman
transcontinental lines control business
between Pacific coast points and the
Isthmus Of Panama.
When it was suggested today that
suit under the Sherman law might
fail because the steamship company,
operated as an Independent line, might
be considered competitor OF the
Southern Pacific railroad, members OF
the senate committee on oceanic canals
discussed the advisability of recon-
mending legislation that would reach
the merger
The hearing today was held to give
the secretary of war an opportunity
to answer the criticism of Senator
Bristow that the government was CIV
ing aid to the transconinental ran
roads by not encouraging the establish
ment of an independent steamship line
on the Pacific coast as proposed py
b. M. Baker of Baltimore.
Secretary Dickinson produced the
proposed contract to show his under
standing Of the offer. 1t indicated the
company was 70 have an exclusive con-
tract and many other favors that Mr..
Dickinson said could not be granted
under authority vested in him or any
other member of the presidents cab
met.
Says He Was Coerced
The statement has been made by MT
Dickinson that he practically had been
coerced by a serious situation into
consenting to the demand of the IA
ciflc Mail company for 70 per cent oi
the joint rate.
The Pacific Mail had threatened to
withdraw it's ships, and If 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been withdrawn, / feel my positioIl
would have been indefensible, and
therefore | was forced TO accept the
terms offered by the Pacific Mail,
said the secretary. Il consuitea WIZ
the president, who knew more about
the canal affairs than l did, and we
were not willing to take the risk OF
calling the Pacific Mail Steamship
company q bluff
."Did you ever make an inVestleatioh
TO determine whether the Pacific Mall Is
controlled by the Hartman lines
asked Chairman Flint.
Mr.. Dickinson replied he mao seen
President Schwerin of the PACING Mai
but once, and they had had an un-
pIeasant interview. Schwerin insisted,
he said. that his line was Independent
of the Southern Pacific, and on that
point they could not agree
Objects to Exclusive Contract
The secretary took the position that
on exclusive contract would reverse the
whole policy of the government, and
that anv government official who would
countenance 1t would be taking an
enormous responsibility.
Several senators pressed the secre-
tary of war for his opinion OF the sur
est way to break up the Pacific Mall
monopoly. He said the surest way
would be for the government to bulld
ships and operate them. but ne Woulo
not say-that such course wouid pe
the wisest. He said the question was
a legislative one, and he did not care
to indorse government ownership:
1--WE sent for you to tell us what 70
do" said Chairman Flint. Ihat,
think. is what you would do II you were
senator, .s A..
"Probably we have been trained In
different political schools" said the sec
reta.ry. "but II have never believed II
was the duty of the government 10 tur-
nish means of transportation. l nave
not believed it wise for the government
10 engage in that business, which can
he hest done by individuals.
No decision was reached on this SUD-
loot and Secretary Dickinson left the
stand after saying he would investigate
the whole subject of mail contracts,
chartering steamships or any other
means of meeting the situation.