New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-06-11
new LAWS KILL
PACIFIC mail CO.
Canal Act and Seamen's
Bill Force Oriental
Line to Quit.
WILL SELL FLEET
OF THIRTEEN SHIPS
Cost of Operating Would Wipe
Out Profits-RiSe in
Stocks.

Through inability to comply with the
Seamen's bill and continue TO meet
Japanese competition in the Pacific
Ocean. and because of the Panama
Canal act which prohibits steamship
Zines controlled by a railroad company
70 carry freight and passengers be-
tween Pacific and Atlantic ports via
the canal. il is the intention Of the
engagement Of the Pacific Mail Steam
shin Company 20 sell its vessels as
soon as possible and then dissolve.
This means the end Of the only Amer
lean steamship line on the Pacific.
A rise Of 81, points in the company's
stock on the exchange yesterday was
attributed 70 the fact that, because o.
ths European way, ships are more val.
liable to-day II they can be operated
under other than United States regu-
lations. Of the outstanding capital OF
So0.000,000 more than Sll,OOO.OOO is
held by the Southern Pacific Company.
The steamship company now owns thlr-
teen vessels. with book value OF SIl,-
$4,000.
Because Of the passage Of the PAN
anna Canal act the Pacific Mail COM
many was forced 20 cancel an order for
four big steamships, to cost Sl2,OOO'OOO.
The management announced, however
that II would continue TO keep ships IN
onera.ion between the Orient and the
Pacific Coast in competition with -FOUR
big Japanese lines heavily subsidized
bv the Japanese government. The pas
sage Of the seRmen's act, prohloltlhg
employment of Oriental crews, how
ever. has made this impossible.
In a table compiled by the company
!. is shown that the total increase IN
wages and cost Of feeding crews which
would result by operating under the
seamens act would amount to SeJ2,-
O42 for coastwise trade and 2O,o42
for deep sea traffic. The company has
ALREADY announced that il would cease
10 sail its ships across the PACING
Ocean or November ?. r. P. Schwerin,
yice-president and general manager
said TO a Congress committee recently;
III YOU had struggled for twenty
wears. as | have; taken a line that w3s
Fl go 600 in debt. doubled its traffic
by slow. hard labor. raised Sl2,OOO,OOO
10 build four 37,000-ton ships to put
into the trade from New York TO the
Philippines. and you were defeated by
Congress through the canal bill and
the seamen's act. think you would ne
a little discouraged.
81 have given twenty years OF my
life. morning. noon and night, TO see
the American flag on the ocean. and II
those four ships had been built would
have had four more for the coast OF
South America and four more equal TO
the Imperator. all under the American
flag. As il is, l am done with the
American flag forever. ! would not
raise my hand to raise a dollar for
the American flag. ! have no inter-
est in the shipping business. @m
about to retire"
Mr. Schwerin pointed out that the
Panama Canal act killed the Pacihc
Mails traffic for the Atlantic Coast,
and that the seamen's act put an END
10 the company's Pacific Ocean busl-
ness. which was all there was left to
kill.
The Pacific Mail Company's report
for the year ended April 80, issued
Yesterday, showed a gross income OF
Sl046.89l, compared with S849,699 the
previous year. Deductions from gross
income left q net income of SSeS,4Sl,
an increase of S177,641. The increase
in business. the report says, is entire
lv attributable TO the operations oil
the transpacifc line due TO conditions
brought on by the European war.
Many Of the ships of the oelllgerents
were taken out of service, as result
of which the company was able TO OBJ
tain larger proportion OF the trafnc'