The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-01-07
CONTROL OF
SHIPPING BY
TRUST ALLEGED
Congress Probes Charge of Dom
nation to and From
States
CARGO FOR RETURN TRIP
is REFUSED IN BRAZIL
Threat Made There to Put
Americans Out of Business
Boycott Alleged

WASHINGTON, Jan. THE house
merchant marine committee began its
probe OF shipping today delying to
ascertain whether shipping trust
dominates commerce TO and from the
United States. Numerous witnesses,
/ mostly owners or agents OF foreign
and domestic shipping lines with
headquarters in New York. were on
hand 10 testify. The investigation,
which will probably continue for a
month or more. will ondeIvor 10 dis.
cover the inner workings OF every
phase OF the water tra:hc combine
over seas. and on the L.land lakes
and waterways.
Methods uf foreign AMI domestic
lines engaged in foreign commerce in
fixing rates, their correction With
railroad lines warcho sing firms.
towagc floats and light,Iage com
panies, will be Thoroughly sifted
Special efforts will be- made to dis
cover just what interest the great
continental lines have In the big over
sea freight and passenger carriers, and
10 what extent foreign 1T 4rests have
subsidized or may own a2y vessels en-
gagged IN foreign commerce.
The committee may hold its hear
ing at any place 1t decides y The most
convenient for all concerned, and II
is empowered 10 force tho presence of
witnesses with any papers il may de-
sire.
Following the oral hearings. an an
alytical report and recommendations
for remedial legislation will 1e sent
TO congress.
The workings OF the alleged Brazil
ian shipping pol, controlling all ex'
ports. including coffee. out OF Brazil
ian ports, formed the first phase OF
the investigation. The hearings on
the Brazilian situation with its rela-
tons to the alleged coffee combine,
will consume at least week.
Sidney Storey, OF New Orleans
president OF the defunct Mississippi
Valley, South America & Orient
Steamship line, and yice-president OF
the Panama-American Steamship COM
ipany, was the first witness today.
1 Storey declared that because Of his
7
familiar with the great war. com
I merciaf rivals of the United States
were waging against us
1T was openly declared in business
circles by our foreign rivals in Brazil
! that we would be run out OF business
in five months" Storey exclaimed.
He testified TO alleged boycotttng OF
4 HIS line TO Brazil harbors.
Storey prefaced his testimony by re-
lating the history of the Mississippi
/ Valley. South American and Orient
Steamship line, which he started In
1910. Previously he had visited Brazil,
and received from the government
warm commentator and promise oil
support. This pledge was made in a
| formal communication, the witness
said, and Brazil later sent two ENJOYS
to investigate the new line.
In June. 1911, Storey said. the final
plans OF the steamship company were
approved by the Brazilian congress
In June, 1912, the Panama-Amerlcan
Ifine launched with-thFee- char
tered British tramp ships. The trans
ports started with heavy cargoes-but
were unable to obtain cargo al
Brazil, and came back empty.
The witness said he had been
warned by capitalists that IL would be
impossible to run an American line
successfully, because of the strong for
eign pool that would compete with II.
Our company decided to withdraw
the line until such time as tire gov
eminent would protect us Storey
continued. Our line was a civic eff
fort. No man could buy more than
$500 worth OF stock.
Our idea was TO disseminate this
stock among shippers In the Missis-
sippi valley, and make this the initial
effort at restoring an American mer-
chant marine.
Brazilian shippers. he declared.
feared the Lamfcr. and Holt. Prinz
Line. Lloyd company, and Hamburg.
South American lines SO greatly that
they were afraid to fight them.
Annually, thousands or wealthy
South Americans go abroad and mil.
lions In commerce are reaped by
Europe because OF their tarnsporta-
ton facilities. Storey declared.
South Americans want TO come to
they are not induced.
Mail deliveries from the United States
are unspeAkable. In most cases mail
goes first 10 Europe. and then to
South America Letters have writ
ten have been nine months on the
way"
The witness charged that even the
cables and press were subsidized.