The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1910-03-01
PACIFIC MAIL
BLUFF COWFD
BOTH OF THEM
Taft and Dickinson Backed Up
on Schwerin's Threat to
Withdraw Ships
War Secretary Would Invoke
Antitrust Law to Break
Up Monopoly

| WASHINGTON, Feb. 2S.-Secretary OF
antitrust law be invoked to break up
the alleged monopoly by which the Pa
! cifc Mail steamship company and the
| Hartman transcontinental lines con-
troll business between Pacific coast
ports and the isthmus of Panama.
| When it was suggested today that
suit under the Sherman law might fail
because the steamship company, oper-
ated as an independent line, might be
considered a competitor of the South
ern Pacific railroad members of the
senate committee on interoceanic canals
| discussed the advisability of recon-
mending legislation that would reach
the merger.
THAT INDEPENDENT LINE
The hearing today was held to give
the secretary of war opportunity to an
swer the criticism of Senator Bristow
that the government was giving aid to
the transcontinental railroads by not
encouraging the establishment of an
Independent steamship line on the Pa
cif1c coast, as proposed by B. 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
Dickinson said could not be granted
under authority vested in him or any
other member of the presidents cab
met.
The statement had been made by
Dickinson that he had practically been
coerced by a serious situation into con-
senting to the demand of the Pacific
Mail company for 20 per cent of the
joint rate. The Pacific Mail had threat
ened to withdraw its ships, and if this
had been done, he said, it would have
left the government line without an
outlet on the Pacific coast.
HELD UP BY sCHWERIN
IF the ships on the Pacific side had
been withdrawn / felt that my posi-
ton would have been indefensible, and
therefore / was forced to accept the
terms offered by the Pacific Mall said
the secretary. 81 consulted with the
president, who knew more about the
canal affairs than L did, and we We're
not willing to take the risk of calling
the Pacific Mail steamship companys
bluff
did you ever make an investigation
is controlled by the Hartman lines?"
asked Chairman Flint.
Dickinson replied that he had seen
President r. p. Schwerin of the Pacific
Mail only once and they had had an UNI
pleasant interview. Schwerin insisted.
he said, that his line was independent
of the Southern Pacific, and upon that
point they could not agree.
The secretary took the position that
OF he
whole policy of the government and
that any government official who would
countenance it would be taking an enor-
nous responsibility.
SUGGESTS FEDERAL COMPETITION
Several senator's pressed the secre-
tary of war for his opinion of the
surest way to break up the Pacific
Mail monopoly. He said that the surest
way would be for the government to
build ships and operate them, but he
would not say that such course would
be the wisest. He said that the ques
ton was a legislative one and he did
not care to indorse government owner
ship.
I'VE sent for you to tell us what to
do" said Chairman Flint. That, /
think is what you would do if you were
a senator
probably we have been trained in
different political schools said the sec
rotary, but 1 have never believed it
was the duty of the government to fur
nish means of transportation. I have
not believed it wise for the govern
ment to engage in that business.
which can be best done by individuals"
No decision was reached on this sub
ject and Secretary Dickinson left the
stand after saying that he would in
vestigate the whole subject of mail
contracts, chartering steamships or any
other means of meeting the situation
POSTMASTER NAMED-washington Feb 2S-
Abraham Clevenger today appointed post
master at Caruthers Fresno county vice n