New-York tribune., 1903-06-12
STEAMSHIP LINES SUED.
Exporters Say South african Lines
Violate Sherman act

The complaints of exporters to South African
ports that they being overcharged in freight
rates and that combination existed among certain
South African steamship lines to force Shippers 10
use those lines and prevent competition in the
South African carrying trade took concrete form
yesterday when suit against these lines alleging
an unlawful combination. violating the Sherman
act and restraining trade and commerce between
the United States and South African ports was
filed in the United States Circuit Court The COM
plainants are Adelbert Thomson. Gustav A. Fod-
ders, Heinrich J. Riedel and Edward H. Muller,
comprising the firm Of Thomson & Co, Of No. 90
Wall-st The respondents the Union Castle Mail
Steamship Company, and Cayser, Irvine & Co, OF
Great Britain, Barber & Co, New-York agents; the
BurckuaIl amship lines and Donald Currie & Co,
Of Great Britain. Norton & Co. New-York agents,
and the Hansa Steam Navigating Company. of Ger
many. Funch Edye & Co New-York agents, the
agents here also being named as respondents.
The complaint declares thai some time prior TO
December. 1885. when the transportation trade be-
tween American and South African ports began
20 increase. the respondents entered into traffic
agreement after uniting under the title OF the
South African Steam Lines. TO discriminate in
charging freight rates, and distributed ong ship
pers South African ports circulars announcing
that those who would not submit 10 the terms Of
the agreement would have pay higher freight
rates than those who complied with them. The
rates enforced under these conditions. the COM
painants assert higher than the tariff rates.
and than proper.
Those shippers who forwarded all their ship
rnents by these lines, the complaint. received
q rebate. being forced TO make a statement on jan
uary 81 and July 81 OF each year. showing all the
merchandise shipped over the respondents lines,
and declaring that they have not directly in
directly made shipments - South African ports by
any other line. Nine months thereafter. if the
shippers in the time remained loyal they
receive a rebate of 10 per cent.
It is further alleged that in 1901 the Hansa Line
and Funch Edye & Co. offered TO transport rner-
chandise 10 South Africa at lower rates. but that
the other respondents requested and allowed the
Hansa Line to become a party to the agreement.
The couaplainants say that the respondents have
At no time dispatched regular steamers to South
Africa at stated days Of sailing, but have placed
steamers in berth receive general cargo only at
such times and for such ports in South Africa as
they deemed best for their own gain.
The COMPLAINT estimates that S,5o00D repre-
sents extortionate amounts received in excess and
rade by the difference between the rate charged
by the combination and the lower rate. said to be
a reasona BILE rate.
Another cause OF complaint, according to the
petition is that the Prince and Houston lines. since
the spring of 1902 offered to carry freight to South
Africa at rate lower than that of the respondent
lines and that TO prevent this competition the
latter while they ostensbly lowered the rate. and
e,,o,,-oed that they would pay the greater differ
encA arising 1herefrom by so-called special COM
mission exacted in reality higher rate Rebates
were Maid only 10 such shippers as were loyal
and where the consgnees well were loyal" to
the defendants and the difference between the
higher and lower rates only computed on
those steamers coming into direct competition with
the Prince and Houston lines.
The complainants cite two instances when they
o4fsra5 70 ship on the respondents steamers, 100
aud sa tons of freight, and in which the respond
ents permitted only 15o tons in one instance and
1no in another TO be forwarded at the lower rate
and charged the higher rate for the remainder
The complainants claim sl650o damages
= said that Thomson & Co. represent the South
American export trade and that the action is TO be
fougbt through TO court OF last resort as test