New-York tribune., 1907-06-20
OCEAN POOL ATTACKED.
SERIOUS CHARGES MADE.
Commerce Commission to Investigate
Hamburg-American Com pany.

Washington. June 19.-The Interstate Com
merce Commission to-day decided TO institute
proceeding of inquiry and investigation into the
affairs of the neutrality-suspicious. Packet Com
pany. which Is charged by Peter Wright & Sons.
general agents at Philadelphia Of the Cosnlo-
politan Shipping Company and the Cosmopoh-
tan lines. with pooling and maintaining nonop-
olies in restraint of trade. r>
The inquiry is expected TO be Of the most
stupendous and important ever undertaken. and
of character different from any that ever be-
fore has engaged the attention Of the commits
sion.
The inquiry will have TO deal with an alleged
combination between railroads in the United
States and the German shipping concern. and
therefore interests every American producer
manufacturer or shipper aspiring to introduce
his goods TO foreign consumers
According to the complaint on which action
was taken by the commission the Hamburg
American Packet Company has built up COM
pete monopoly of the eastbOund traffic orisi-
mating in Chicago. st. Louis. Kansas City.
Omaha Minneapolis. Duluth. Cleveland and
other manufacturing centres Of the United
States intended for interior ports or places on
the Continent OF Europe The complaint re-
views what il alleges to be unfair methods IN
sitting competition
The Cosmopolitan Shipping Company. of Phil
adelphia, which figures as the complainant.
onara+es lines to Rotterdam. Leith and Copen-
hagen. The charges aIlege that an ironclaid
trust in transatlantic freight carrying exists be-
tween the Hamburg American Packet Company
the North German Lloyd. the scandinavian
american Line and the Wilson CHulD line. and
that this pool apportions the volume OF tralne
each of its members shall carry. and from "aat
port or ports each line shall make its saiuoss'
thus involving the apportionment OF trafrc orig
inatfng in Western cities-both as 70 character
and annount-between the cities OF the North
Atlantic seaboard.
Charging that the Hanburs-American Pac-Nee
Company. in it's almost absolute control OF east
hound and westbound traffic between interior
points of the United States and Hamburg Is
monopoly in restraint Of trade. the complaining
company raises an international question mo
allegation is made that the foreign corporation
is backed by the German government, dictates
terms routes and rates TO shippers all over toe
United states who forward goods 10 6a4uc
ports diverIs freight TO and from American
its VIII. WlInOuI AeSakO " ~.-N
ural flow of trade. and uses coercive anu VIaA"-
ful methods TO crush competition
INVITATIONS OF COERCION
The statement fled by Peter Wright & Sons
saws that the Cosmopolitan freight services have
no desire 10 suppress legitimate competition and
adds:
We therefore. do not seek to have aiileilo-
rated any of the conditions which falr conipeu-
tion NAV innpose We do believe, however. tnae
nocIfng combinations and intulidations, the lat
Ter in certain instances approaching olachnaail'
even under the senblances Of competition, arc
not legitimate forms of competition FooEnEs
combinations and intimidaJions in their worst
forms have been encountered recently by tho
CosroopoIitan services They are the unlaW1uI
conditions, nasquerading under the su1se OF
competition which it is our purpose 10 enoeaNor
TO place before your honorable commission IN a
concise and chronological form
The charges are summed up as follows;
First-That the Hamburg-American Packet
Company is monopoly in restraint OF trade. ex-
ercisng through its contracts the power TO con-
troll traffic. both eastbound and westbound- be-
tween Hamburg and interior cities IN the United
States and 10 determine the rates and routes OF
such traffic
second-That the Baltic Pool of which the
Hauburg-American Packet Company IS the
controlling factor is combination in restraint OF
trade debating the percentages OF traffic from
interior cities of the United States 20 Baltic
points which shall flow through each Of the
North Atlantic ports mentioned. to the end tnar
each of the lines composing the pool may re-
ceive its allotted proportion Of the business and
no more.
Four other charges are made. divided as fol-
lows
That the enect OF the differentiaIs which place
American ports on an equality is nulliied by
the pools arbitrary division of the trafAc; that
the acts complained of are in violation or the
laws of the United States; that efforts 70 re-
habilitate the American merchant marine ara
haupered and rendered abOrtive by this uonop-
oily. and finally, that there is little in legis-
lation for the benefit Of the American shipping.
IF az the same time we allow our present laws
10 be violated by unscTupuious foreign cor
poration in its effort to suppress American COM
petition on land and sea
In connection with the complaint the Cosmo-
poIitan Line submitted copies of the combines
rebate form Of contracts. and IT is alleged that
these show that shippers are bribed and
squeezed to compel them TO submit the
monopoly. II is charged that the Hamburg
American Packet Company monopoly begins
with the state owned railroads In Germany.
which give the corporation rebates, and that
the company forces all European shippers TO
sign On ironclad contract providing for liberal
rebates in return for exclusive shipments by'its
lines This contract SAYS:
The rebate will be paid only to such shippers
as have. shipped all their goods bound from ports
between Hamburg and Rotterdam (both included
10 United States ports between Boston and New
port News tbOth included) exclusively by steam
ships of the undersigned companies by such
steamships have been approved Of by the
dersigned companies; provided always. that the
shippers have not been interested IN direct or in
direct shipments by any other steamers than those
mentioned. either owners of the goods or
agents. whether directly indirectly.
In other words. the HambUrg-American Com
pany. il is charged. arbitrarily fixed rates from
Hamburg Boston. New York. Philadelphia.
Baltimore Norfolk and Newport News and
tl,a nd tha