The Washington herald., 1907-06-20
FEAR GERMAN SHIPS
Hamburg Steamers Accused
of Sitting Competition
DICTATE RATES TC AMERICA
Philadelphia Company Files Sensa-
honRl Charges Against Alleged
ment Railroads Assist in Intimi-
dating Shippers-Rebates Given.

y case Of unusual importance, invoIv-
Ing alleged violations Of the act to reg
ulate commerce and the act aimed at
combinations I'm restraint Of trade. in
which question is raised bearing on
our international relations. was yester-
day brought to the attention of the In
terstate Commerce Commission. The
case is expected 10 attract widespread
attention, calling as it does for de-
oision affecting traffic carried on be-
tween the States. and between Ameri-
can ports and European ports. The COM
plainant is the Cosmopolitan Shipping
Company, Of Philadelphia. operating
the Cosmopolitan lines. 1t charges the
Hamburg American Packet Company
with pooling and maintaining monop-
olies in restraint of trade"
The Philadelphia concern in its COM
plant charges that the defendant is a
monopoly in restraint Of trade. in its
almost absolute control of east-bound
and west-bound traffic between inte-
rior points of the United States and
Hamburg, and, further that it main
tains a law-defying pool in New York
City, which dictates the rail and ocean
routes by which freight Tor Baltic
ports shall be shipped. the percentage
Of traffic each steamship line in the
pool shall carry. and the percentage Of
export business that shall pass through
Boston. New York. Philadelphia. Balti-
more, Norfolk, and Newport News.
German Firm Dictates Here.
In other words, the charge is made that
this great foreign corporation. backed BY
the German government. dictates terms.
routes, and rates 10 shippers all over the
United States who forward goods TO
Hamburg and Baltic ports, and further,
that il diverts freight 70 and from Amer
lean ports at its own will without regard
70 the natural flow Of trade. using CO.
ercive and unlawful methods TO crush
competition"
The Cosmopolitan lines dlsclaim objec-
ton 20 competition But it adds.
We do believe. however. that pooling
combinations, and intimidat.Ons-th lat
ter in certain instances approaching
blackmail-are not legitimate forms Of
competition"
In its summary Of charges. among
other things, it says: There is little use
IN legislation for the benefit Of American
shipping if ar the SAME time an unscru-
pulous foreign corporation is allowed to
violate our present laws in its efforts to
suppress American competition on land
and sea"
Rebate Contracts Made.
In support Of the charges. the Cosmo-
politan lines submit copies OF the trusts
rebate forms of contracts. showing how
shippers are bribed and squeezed by the
combine to compel them to submit 10 the
monopoly"
According 90 the complaint. the Ham |
urg-American Company's monopoly be /
gins with the state-OWned railroads in 1
Germany. which give the corporation re- /
bates. Then, it is alleged, the company
forces all European shippers to sign an /
ir0n-Cl7d contract providing for liberal |
rebates in return for exclusive shipments /
by its lines.
It is charged that by means Of frequent /
reports and comparisons of records IN |
New York the volume Of traffic is care
fully regulated the pool dividing It among
its members and arbitrarily deciding by 4
which Atlantic port each shipment shall /
20. The complaint says.
1T is able 10 come into the very center /
Of the United States and apportion the |
traffic originating in our Western cities /
both as to character and amount. be- |
tween ports on our Atlantic seaboard and I
ports on the Baltic"
The powers exercised by the Baltic F.
pool. the complainant continues. are dan /
gerous 90 the commercial welfare Of the f.
United States
No sooner had the Cosmopolitan estab- /
lshed its Philadelphia-COpen serv-
ice last year. the complainant says. than
the trust demanded its withdrawal II /
made no difference that shippers wanted .
the line. in that it meant commercial ad-
vantages 10 the city Of Philadelphia.
Take it of, was the command.
Has Immense Tonnage.
The complainant declares that the
power Of the Hamburg-American may be
judged from the fact that the tonnage
of its vessels is greater than the tonnage
Of al the steamships Of the United States
large enough for trans-Ocean voyage.
The complainant concludes as follows:
The Interstate commerce act. the
Sherman antitrust act, the antitrust
amendments Of the Wilson tariff act. and
other similar laws or the United States
were intended 20 protect its citizens from
the consequences Of such OverpOwerng
monopolles, and the resulting restraint
Of trade. The Hamburg-American Packet
Company has persistently and continu-
Ously violated the laws"
The Interstate Commerce Commission
has ordered an inquiry into the charges
made IN the complaint, and hearings in
the matter will probably be held in New
York later In lie inNastieatinn