New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-06
GULF LINE VICTIM
ACCUSES SO. PAC.
HOunded Out of Business
by Railroad, Steamship
Man TeStifies.

A story OF spies, business intriguing
and bribery was unfolded before Inter
state Commerce Commissioner Meyer
Yesterday by witness who declared
that the Philadelphia and Gulf Steam
ship Line had been bounded out OF
business by the Southern Pacific Rail
road.
Frederick S. Groves, one Of the orig
inal hackers Of the line, said that dur
Ing the three years they had competed
with the Southern Pacific they had been
excluded from the Southern Traffic As
sociation. their credit had been i'm
paired in every way possible and they
had found it impossible TO buy or char
ter steamers. They had been bounded
10 such an extent, re said, that they
were afraid to hire anybody for fear OF
taking on a spy from the Southern "a
cihc road.
"The persecution was systematic and
continuous" he testified. Other iines
not associated with the Southern "a
cifc. meanwhile, were not only friendly
to US. but gave us most Of their busl-
ness"
A letter written on the stationery OF
the Morgan Line. the right to oper-
ate which brought about the present
hearing, was produced by Mr.. Groves
10 bear out his statements OF sys-
tematic persecution. The letter bore
the signatures Of L. J. and r. J. Spence,
Of the Morgan Steamship Line and
the Southern Pacific road. in 1t an
offer was made 10 a private detective
Of 81 for manifests of the Philadelphia
and Gulf Steamship Line.
Mr.. Groves exhibited certain Keen
satisfaction when, in the presence OF
L. J. Spence. he told how he had
framed I'D" manifests and sent them
TO the Morgan Line Offices. where the
detective YVES paid the 81. He said tins
was done IN order TO get evidence of
this persecution, which he later sent TO
Washington for investigation. Nothing
had been done By the Federal officials,
however. although Attorney General
Wickersham was quoted as saying that
he had begun an investigation.
Mr.. Spence, when recalled to the wit
ness stand and asked about the alleged
manifest conspiracy, said that they had
sought these manifests and those OF
practically all their competitors.
That's the way we get the facts
showing where business is coming from
and where II is going" he said. u
didn't know that this man we got the
manifest from was O detective, but we'd
/ lust as soon get II from him as from
q doctor, o lawyer or drayman."
The Interstate Commerce Commits
eioner seemed greatly interested when
Mr.. Groves told Of the Intellectual eff
forts of his line TO get into the South
ern Traffic Association. The former
steamship official said that the Morgan
Line. owned by the Southern Pacific
road. appeared 10 control the organiza-
ton, and that when the final rejection
came back to him II was signed by
J. C. Stubbs, traffic director for the
| Southern Pacific.
"Do you know what person dissented
from the association admitting your
line ?" asked Mr.. Meyer when be learned
that but one voice had been raised
against its application for member
yes: Mr.. Spence was the strongest
antagonist Of our line" MI Groves an
swered.
The present hearing was brought
about by the application OF the South.
ern Pacific for such a construction OF
interstate commerce regulations as will
permit il TO continue to own and oper-
ate the Morgan line of steamships. MIR.
Groves and representatives of New Or
leans traffic organizations are opposing
the application on the ground that the
line is being used to kill competition.
During the evening session the
Southern Pacific road had its innings,
when Seth Mann, representing the
Chamber of Commerce of San Fran
cisco and nearly twenty other associ-