Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-05-29
Against American Shipping In
terests, Says c. S. MeIIen.
HELD AN AID TO CANADA
That Country Should Pay United
States, He Says.
SEES DANGER OF MONOPOLY
Protests Ban on Vessels Owned by
American Railroads, Predict
ing Loss Of Millions.

Canada or its railroad and steamboat
corporations ought to pay subsidy to
the United States for the legislation
adverse to American shipping interests
in the Panama canal bill passed by the
democratic House. in the opinion of
Charles S. Mellen. president of the New
York, New Haven and Hartford rail-
road, expressed before the Senate COM
mittee On interoceanic canals today.
If 1 had the power to produce the
situation which will be brought about
by this BILL" he told the committee, II
could retire from business after one
interview in Montreal. The title of this
bill ought to be changed, and it should
be called a bill to promote the develop
ment of Canadian ports and to hinder
the development of United States ports
Incentive to Monopoly.
In its present form. President MelIen
told the committee. 1t contains the great
wise trade of the United States and will
act to the suppression of competition and
the maintenance of high rates All these
results will come largely from the prohi-
bition in the bill against the ownership of
water lines by railroads. for the direct
ASSaAS III thdt 10 " dliOW OdO-OWhcu
lines of Canada to go through the canal
without competition from railroad-oWned
lines of the United States.
He declared that the bill if enacted into
law would work disaster to New England
business interests, in whose behalf they
were forced to gain control of a great
number Of boat lines. He placed the sum
OF $2o.OOOOO as conservative estimate
OF the money his railroad had invested in
steamship lines
Mr. Malfon declared hot n
was only one of the unfortunates affected
by this bill. He told of the many boat
lines his road operated, among them
being the Merchants and Miners Steam
ship Company, of which his railroad
owns one-half of the stock; the New Eng
land Navigation Company, the Hartford
and New York Transportation Company
and various other lines operating from
New York to points in New England. He
denied that these water lines were taken
over for monopolistic purposes.
New England Situation.
Mr.. Mellen argued that the situation
in New England manufacturing districts
presented such difficulties that they were
forced to control these boat lines In the
interest of their shippers, giving them an
express service at freight rates. He said
that his railroad bought a half interest
In the Merchants and Miners steamship
steamship combine in order that the New
England manufacturers would enjoy the
low rates to southern points.
If railroad-owned boats generally are
allowed to operate through the canal, in
Mr. Mellen's opinion. competition will be
promoted and rates will be lowered.
Danger Pointed Out.
1t was pointed out to him by members
of the committee that the railroad boat
lines might wipe out competition by low
rates and then, with no competition, in
crease rates at will. President Mellen
said he would prevent that by law that
would not allow the rates to be increased
after the competition has been wiped out.
He was asked how he could explain
the unanimous appeal OF business men
in California and Washington that rail-
road-owned steamers be not allowed to
use the Panama canal
They have an idea they will be in
terested in some steamship lines"
think. land want to wipe out the COM
petition with railroad-owned boats"