Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-06-20
Interstate Commission Will In
vestigate Hamburg-American
Steamship Company
,RoNcLAD TRUST is ALLEGED
Shippers Said to Be Bulied and Bribed
Into Submission to the Combine -
Backed by the Kaiser = A Blow at
American Marine.

washington, June 20-The interstate
commerce commission today decided to
institute a proceeding of inquiry ana
investigation into the affairs of the
Hamburg American Packet Company,
which is charged by Peter Wright d
Sons. general agents at Philadelphia OF
the Cosmopolitan Shipping Company
and the Cosmopolitan Lines, with
pooling and maintaining monopolies
in restraint OF trade. The inquiry 10
expected to be one of the most stu
pendous ever undertaken and OF
character different from any that ever
before has engag ed the attention Of the
commission.
The inquiry will have to deal with
an alleged combination between rail-
roads in the United States and tne
German shipping concern and there
fore interests every American produce
err, manufacturer or shipper aspiring
to introduce his goods to foreign con-
sumers.
According to the complaint on which
action was taken by the commission
the Hamburg American Company has
built up a complete monopoly of the
east-bound traffic originating in Chi
cago, ST. Louis, Kansas City Omaha,
Minneapol Duluth, Cleveland and
other manufacturing centers intended
for interior points or places on the
continent of Europe. The complaint.
| reviews what it claims TO be unfair
methods in sitting competition
The Cosmopolitan Shipping Com"
pany of Philadelphia, which figures as
the complainant, operates lines to Rot"
terdam, Leith and Copenhagen Inc
| charges allege an ironclad trust III
| trans Atlantic freight carrying exists
between the Hamburg American Pack
ct Company, the North German Lloyd
1 Scandinavian American Line and the
Wilson (HulD Line, and that this pool
apportiol1s the volume of traffic each
of it's members shall carry and says
| from what port or ports each line shall
make it's sailings, thus involving the
apportionment of traffic originating in
western cities-both as to character
and amount-between the cities of the
North Atlantic seaboard.
| In charging that the Hamburg Am
| erican Packet Company in its almost
absolute control of east bound and
west bound traffic between inferior
| points of the United States and Ham
burg is monopoly in restraint OF
trade the complaining company raises
an international question. The allie
. cation is made that the foreign corpor-
alton is backed by the German govern
ment, dictates terms, routes and rates
! 10 shippers all over the United States
who forward goods to Baltic ports, di-
verts freight to and from American
ports at its own will without regard to
| the natural flow of trade, and uses CO.
ercive an unlawful methods to crush
| competition.
! In addition to these charges it is
alleged that efforts to rehabilitate the
American merchant marine are hamp-
cred and rendered abortive by this
monopoly, and that there is little use
| in legislation for the benefit of Amer
lean shipping, ''if at the same time we
allow our present laws to be violated
by an interruptions foreign corporation
in it's efforts to suppress American
competition on land and sea-"
In connection with the complaint the
Cosmopolitan Line submitted copies of
the combines rebate form contracts,
and it is alleged that these show that
shippers are bribed and squeezed to
compel them to submit to the monop-
oily. 1t is charged that the Hamburg
American Packet Companys monopoly
begins with the state owned railroads
in Germany, which give the corporation
rebates, and that the company forces
all European shippers to sign an frort-
clad contract, providing for liberal re-
bates in return for exclusive ship
ments by it's lines.