The Washington herald., 1907-06-20
FEAR GERMAN SHIPS
Hamburg Steamers Accused
of Sitting Competition
DICTATE RATES TO AMERICA
Philadelphia Company Files Scnsa-
iOna1 Charges Against Alleged
Trust-DecInres Kaiser's Govern
ment Railroads Assist in Intimi-
dating Shippers-Rebntes Given,


\ case Of unusual Importance. involv-
ing alleged violations Of the act to reg
ulate commerce and the act aimed at
combinations In restraint Of trade. In
which a question is raised bearing on
our international relations. was yester-
day brought 20 the attention of the In
terstate Commerce Commission. The
case is expected TO attract widespread
attention, calling as it does for a 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-defving pool in New York
City, which dictates the rail and ocean
routes by which freight for 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 it diverts freight to and from Amer
lean ports at its own viii without regard
to the natural flow Of trade, using CO
ercive and unlawful methods to crush
competition"
The Cosmopolitan lines disclaim objec-
ton 10 competition. But it adds:
we do believe. however. that pooling.
ter in certain instances approaching
blackmail-are not legitimate forms Of
competition"
IN It's summary OF charges, among
other things. it says: There is little use
in legislation for the benefit Of American
shipping if az the same time an unscru-
puloUs foreign corporation is allowed 20
violate our present laws in IT'S 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 10 submit 70 the
monopoly"
According to the complaint the Ham
burs-American Company's monopoly be
gins with the state-Owned railroads in
Germany. which give the corporation re-
bates. Then. it is alleged. the company
forces all European shippers TO sign an
iron-clad contract providing for liberal
rebates in return for exclusive shipments
by It's 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
which Atlantic port each shipment shall
g. 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
sF..
ports on the Baltic"
The powers exercised by the Baltic
pool the complainant continues. are dam
gerous to the commercial welfare Of the
United States
No sooner had the Cosmopolitan estab-
li5hed its Philadelphia Copenhagen serv-
ice last year. the complainant says. than
the trust demanded its Withdrawal II
made no difference that shippers wanted
the line. in that il meant commercial ad-
Tantages to the city Of Philadelphia.
Take it of" was the command
Has Immense Tonnage.
The complainant declares that the
power Of the Hamburg-American may he
judged from the fact that the tonnage
of its vessels is greater than the tonnage
Of all the steamships Of the United States
large enough for traus-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 to protect its citizens from
the consequences Of such overpOwering
monopolies, and the resulting restraint
Of trade. The Hamburg-Americ Packet
Company has persistently and cOntlnu-
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 The lny-as+igatio,