New-York tribune., 1915-10-16
W'ADOO WRONG.
SAYS SHIP OWNER
Julius Kruttschnitt, Pacific
Mail President, Attacks
Secretary of Treasury.
DENIES CANAL ACT
CAUSED FLEET SALE
Seamen's Bill Alone TO Blame
for Giving Ocean Monopoly
to Japan, He Declares.

In reply 70 recent address Of Sec
retary McAdoo, in which he attacked
the officials OF the Pacific Mail Steam
ship Company, julius Kruttschnitt,
president Of the company and director
Of the Southern Pacific Company, the
controlling organization, issued
statement yesterday criticising Mr.. Nc
Adoo and contradcting outright sew
eral of his statements.
The particular remarks of the Sec
retary of the Treasury which have
aroused Mr. Kruttschnitt were made in
a speech in New York on October II.
81 am tcld." the Secretary said at that
time. that the seamen's bill was not
the handspring for the transfer of the
Pacific Mail vessels The Panama
Canal act. which denied railroads own
ing competitive steamship lines the
right to operate them through the
canal. and the present abnormal rates
for cargo space on tho Atlantic, when
made il possible 10 sell the ships at
more than their real value, were, un-
derstand, the true cause Of their sale.
Denies Canal Act Caused sale.
To this accusation Mr.. kruttschnltt
replies:
'The Secretary Of the Treasury init
mates that the provisions OF the
Panama Canal act, forbidding railroad
owned ships from going through the
canal. is "A contributing cause. 1t IS up
TO him 10 explain what possible connec-
ton there can be between the Panama
Canal act and a sale, not of ships en-
gagged in the Panama Canal trade, but
OF separate feet, always engaged IN
trans Pacific trade
"The company is censured,' he says,
because it gave no adequate notice
that the La Toilette bill would cause
il : discontinue its trans-Pacifc line.
That the inevitable consequence OF the
massage Of the seamen's act would be
the forced discontinuance OF its steam
ships on the Pacific was valnly pointed
out By the representatives OF the "a
ciGc Mail TO Congressional committees
az numerous hearings during the eleven
wears that intervened between the date
Of the first introduction Of the bill and
its final passage Finally the head of
the Pacific Mail, on July IL, 1914, as
last resort. wrote a formal letter 10 the
same effect 10 the President OF the
United States.
Saws Warning Was Treated as Bluh.
1T was shown at that time that the
inability of the Pacific Mail TO operate
under the restrictions OF the seamen's 8
bill was not based on a rough esti-
mate of the increased expenses. but
was accurately ascertained by an
analysis of the payrolls and the other
expenses of operation which would be
affected by the provisions of the bill.
All these remonstrances, warnings and
notices were treated as bluff and
now are regarded as never having been
made.
"The stockholders OF the Pacific
Mail" Mr.. Kruttschnitt continues. in
cluding t. larg number of minority
stockholders for the Southern Pacific
owns but little more than a majority
of the shares-have unanimously con-
Cured in the conclusion of its man
aging officers, that the requirements OF
the seamen's bill left the company no
alternative but TO withdraw its ships
from the Pacific Ocean. IL remains TO
be seen whether the other parties in
terested, the shippers and public gen
orally, can be persuaded TO pass by the
obvious caIse and ascribe the disap-
pearance Of American ships and the
monopoly of the japanese on the Pa
cifc Ocean to the stupidity of the own
ers of American ships or 10 the self
destroying conspiracy formed by them
for the purpose Of discrediting the au-
thOrs of the seamen'S bill.