The Detroit times., 1910-12-17
ALLEGED TOWING
TRUST IS GIVEN
HARD JOLT
Capt. c. A. Sinclair, Former General
Manager of Great Lakes Concern,
Says 1t Has Monopoly in Nearly
Every Port.
Government Will Seek To Show That
0stensible Competitors Are Really
Part OF Octopus.

That the Great Lakes Towing 20,
known as the towing trust, enjoys a
monopoly OF the harbor towing bus'-
ness In practically all the ports or
the Great Lakes except Two Harbors
anu Milwaukee, was, in substance,
the testimony OF Capt. G. A. Sinclair
OF Detroit, formerly general manager
of the Great Lakes Towing Co, be-
| fore Special Examiner Burton C..
Miller in the United States circuit
| court rooms. Friday morning.
| Capt. sinclair was the first or
more than score OF Witnesses who
| will be examined here in connection
with the governments suit 10 dis
solve the alleged towing trust as be
ling i'm violation OF the Sherman anti
| trust law. The taking OF testimony
began with Fridays session and Will
continue here for several days. after
which the officials will continue the
hearing in some other port. William
IL. Day, United States district attor-
|ney for the northern district OF
Ohio. and a live wire is in charge
|of the examination for the govern
|ment. He is assisted by T., p. Cham
berlin. special assistant. and II. j.
Lins, special agent OF the department
|of Justice, who gathered much OF the
evidence against the defendant com.
|pany The trust. so-called, is repre-.
scented by Harvey u. Gouder and
Herman Kelley. both OF cleveland
Capt. Sinclair's testimony, consid-
|ering the fact that he had been re
garded as a hostile witness by the
government. and referred TO as such
| by Mr.. Day during the examination,
| wac something of a surprise
ut is better than | expected by
| far" said Mr. Day with Il smile at
the conclusion of the morning ses.
|sion.
Mir Goulder was plainly disconcert.
| ed, and exhausted all his resources in
an effort 10 secure a mod fcation of
| the testimony from the witness. but
| with poor success. Capt Sinclair was
the only witness examined during the
morning
In an effort to show that the Great
Lakes Towing Co had competition in
| all the principal ports. Attorney
|Goulder enumerated long list OF
concerns. reading from a marine di-
|
he knew of these concerns. but de
clared that very few OF them had
anything to do with towing the big
boats in and out of harbors. except
as they could pick up n job here and
there. During his term as general
manager of the company, which was
bin 1903 and 1904. the company. ne
Testified, had contracts with practical
M1u hn 10 ~ n lnly
requiring tow service.
Mr.. Goulder named number of
ports where there were no Great
Lakes Towing Co. tugs Among them
The mentioned Presque Isle
None there. are there" he asked
"They couldn't make expenses IL
There were" was the reioinder
But there are other tugs at that
|port?'
"Oh, yes, fish tugs
The inference from the captains
Testimony was that the Great Lakes
concern did business only where it
was profitable 10 do business. and
that, in the ports where II operates
Ut enjoys practically a monopoly.
Capt Sinclair did not give up this
Information voluntarily by any means.
w udl duiillSSlONS tt Illdut were
forced from him, but when he had
once made a statement, he stood by
it. Most OF the testimony was high.
BY interesting, a. tending to show the
workings OF the trust.
The government claims that many
of the smaller companies. which ap.
pear to be operatin IN competition TO
the trust, including some oil those
operating in the Detroit river. are
really part OF the combine, the
IGreat Lakes concern owning all but 4
flew shares Of the stock in each in
Stance. Mr.. Day will try to show this
before he gets through The COM
petition. therefore, Is merely blind,
the government contends.
Mr.. Day forced Capt. Sinclair to
tell of conference between the Great
Lakes Towing Co. and the Lumber
Carriers' association, held in Detroit
lin 1904, when the latter complained
THAT the rates charged the lumber
barriers were too high and the Great
Lakes Co. granted reduction. Soon
latter this, he admitted, most OF the
independent companies went out OF
business, either because they were
gobbled mp by the big corporation or
because they could not meet the Great
Lakes rates. Among the companies
he mentioned as having been taken