Arizona republican., 1907-06-20
COMMISSION
 GOES TO SEA
In the Investigation of Un. lawful MOnOpOIies
An Alleged Pool Made Up of Foreign Shipping Cor pOratiOns.

state Commerce Commission today de- cided to institute an investigation in to the affairs of the Hamburg -Ameri- can Packet Company, which is charg- ed by Peter Wright and Sons. general agents at Philadelphia, of the Cosmo- politan Shipping Company, with the maintaining of monpolies in restraint of trade. The inquiry Is expected to be one of the most stupendous ever undertaken, and of a character differ ent from any ever before the commits sion. The inquiry will deal with an al- legged combination between railroads in the United States and the German shipping concern and therefore, the interests of every American producer. manufacturer or shipper aspiring to introduce goods to foreign consumers.
 According to the complaint, the Hamburg American company has built a complete monopoly of eastbound traffic originating in Chicago, St. Louis Kansas City. omaha, Minneapolis. Du- luth, Cleveland and other manufactur ing centers intended for interior ports or places on the continent of Europe. The complaint reviews what it claims to be unfair methods in stifling com
 
 petition.
 The Cosmopolitan company of Phil adelphia. which figures as the com plainant. operates lines to Rotterdam. Leith and Copenhagen. The charges allege that an ironclad trust in trans Atlantic freight carrying exists be- tween the Hamburg American compa- ny, the North German-Lloyd. the Scandinavian American line. .the Will son line and that this pool apportions the volume of traffic each member shall carry. from what port or ports each line shall make sailings, thus in- volving an apportionment of traffic originating in western cities.
 The complaining company raises an international question. The allegation is made that foreign corporations. backed by the German government. dictates the terms, routes and rates to shippers all over the United States who forward goods to the Baltic ports and uses unlawful methods to crush competition. The statement says the Cosmopolitan freight service has no desire to suppress legitimate competi- ton and adds: We therefore do not Nfth tp nave dllN NOIhl- tions which fair competition may i'm pose. We do believe. however that pooling combinations and intimida- tions. the latter in certain instances approaching blackmail. even under a semblance of competition, are not le- gitimate competition
 Charges are made as follows: That the effect of differentials which place American ports on an equality is null lifted by the pools arbitrary division of traffic: that the acts complained of are in violation of the laws of the United States: that efforts to rehabili- tate the American merchant marine are hampered and rendered abortive by the monopoly. and. finally. that there is little use in the efforts for the benefit of American shipping. if at the same time We allow the present laws to be violated by interruptions foreign corporations in an effort to suppress American competition on land and sea"
 In connection with the complaint the Cosmopolitan line submitted copies of the combines rebate form of contracts and alleged that these show that ship pers are bribed and squeezed to com pei them to submit to the monopoly It is charged that the Hamburg Amer ican company's monopoly begins with the state-owned railroads of Germany. which give the corporation rebates. and that the company forces all Eu- ropean shippers to sign an ironclad contract providing for liberal rebates in return for exclusive shipments by its lines.
 It Is further charged that the mer- chant who ships one consignment by an independent line cannot ship any by a line in the combination. The complaint on which the Interstate Commerce Commission is asked to act alleges that when the Cosmopolitan established its Philadelphia Copenha- . gen service last year the combine demanded it's withdrawal. The Cos mopolitan refused and it is declared that an attempt was then made to drive the line from the field and be- cause of this attempt an appeal is made to the commission for an inves- tigation.