The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-02-14
The OCEAN FREIGHT WAR.
Lone Star Line Is Making 40 Az.
aressivc Fight.
STRONG PROTEST AGAINST THE DEAL
The Railroads Accused OF Comb,n-
ing with the Mallory Line ON
Joint Through Rate.

Galveston, Texas. February 1.-the "a.
pers III the application OF the Miami steam
snip company, otherwise known ms the
Lone Star line, FOR an injunction against
the Santa Fe. International aud Great
Northern and Katy railroads, were received
here today ana filed in the United States
district court. The petition is a voluminous
one and sets out al great length all the
| relations that have been sustained toward
tue Lone Star line by the railroads since it
began business.
| IL Is iirst shown that the railroads men
toned are the only trunk lines In Texas
that reach and traverse the great South
west, territory from which large amount
OF freight originates and is shipped. all OF
said roads having terminals in Galveston.
The factis stated that the plaintiff steam
ship company has been engaged in the bust
ness of transporting freight between Gal
weston and New York only since July 10.
1897; that it is doing business as COM
mon carrier for hire; that its ships are
large and commodious. and that II has
proper sheds and other facilities Tor hand
| ling the business entrusted to its care.
Since July Is of last year 1t has done n
large business on exactly the same terms
as other steamship lines its relations With
the railroads being same as those sustained
by the Mallory line 1t is shown that there is
only one other steamship company--the
Mallory linc-doing an ocean business be-
tween Galveston and New York, and the
plaintiif claims to have the same facli-
ties for handling freight as are enjoyed by
Its competitor.
The petition next shows that il has been
and Is now the custom in the interchange
of freight for the line over which the
freight might be routed TO advance to the
line originating the some the charges on
such freight up to the time of delivery. In
case of freight originating in New York
City or elsewhere and destined TO points
along The said railroads IL has been The Gus
tom of the steamship line handling same
TO bill the goods through to destination the
railroads handling 1t paving 10 the steam
ship company the amount OF freight 1t earn
ed. On outward bound freight they were
billed through to destination by the steam
ship company. the railroads again laying
the amounts they earned.
The association known as the South
western Freight Bureau Is shown to be
Il combination OF railroad and steamship
lines. the rail lines embracing the chief
roads doing business in the Southwest. The
Southern Pacific company, the Morgan
Steamship company, the Cromwell Steam
ship company and the Mallory line are set
out as the steamship lines that are menl
bers of the association. The recent meet
ing of the executive committee of the bu-
reau in New York is discussed in the petit
ton, the action there taken being branded
a conspiracy against the Lone Star line. |
The resolutions there adopted, as well as
the notices each of the three offending
roads sent the Lone Star, are quoted, which
the plaintiff says means practically re-
fusal TO do business with it.
In the event their threat is carried out
the Lone Star says ii would be compelled
to prepay all charges, both on incoming
and outgoing freight, and alleges that such
condition would not apply to the Mallory
line Tor the reason that il is a member
OF the combination. To carry out such a
plan the petition alleges would be will
full violation OF the Federal statutes oh
the part of the railroads and to comply
with their order would prevent the Lone
Star from doing an interstate business. AT
any rate It would have to accept freight
at very low charge and would be giving
the Mallory line an undue advantage.
The charge is then made that the roads
have entered into an agreement TO do
business with the Mallory line after the
18th instant at a through rate which is
less than the combination of local rates |
and which is less than will be demanded
of the Lone Star They have agreed FUR
ther tnat III the case Oh lrelSnt OriBiHutiub |
outside of New York for carriage, of which |
the Mallory line or consgners of said |
freight would be required TO pay no more |
than 30 cents per hundred pounds. That |
the cost of such transportation to New
York so required shall be absorbed and |
all lines participating in the carriage OF
such freight shall pro rate the cost OF car
rage to New York with the Mallory line |
and the latter will be called upon to pay |
ony 30 per cent of such charge. This !
agreement applies TO all freight originals
ing outside of New York and imposes on |
tho Lone Star In its competition for such !
business the amount rebated to the Nal |
lory ms its pro rata Of the arbitrary paid
out in getting such freight to New York
Tho final charge in the petition Is that
the railroads have agreed with the Mallory |
line that for all freight transported by II |
from Galveston 10 New York or vice versa |
the Mallory line shall receive 30
Der cent of the through rate,
the balance to be pro rated upon an agreed
basis, This the Lone Star contends the
railroads will refuse TO do by IL.
The petition closes by asking for tenn
porary restraining order, which was grant
ed BY Judge Bryant and the final hearing
Will be had In Galveston on the 2lst In
slant.
There Is an impression here that the
roads will not fight the case Some
even contend that they want 10 do bust
ness with The Lone Star and have taken
This course merely 10 keep peace in the
ranks Of the Southwestern Freight Bureau.
All Dilicreuces adjusted,