New-York tribune., 1907-06-22
SHIPS In SECRET PACT.
WORK OF CONFERENCES" !"
Rates Controlled by Ironclad Rules-
Contracts 1gith Railroads.

the steamship companies which seek to keep ticket
agents from doing business for any line in the
combination obtained yesterday from man
who says he was formerly connected with one, of
the conference members and is familiar with their
methods of procedure
Each company in the conference is obliged 10
deposit a bond Of 5000" said this man. 'as a
guarantee that it will adhere to the rule of the con-
eren>e. 1t is the business of the secretary to look
INTO all violations of the rules and get an explana-
ton from the offenders Fines are sometimes i'm
posed Tor violations of the rules. OF course, none
or the three conferences would go so far as to
Te1use admission to a new line. but they demand
mat the line shall live up to these and shall
obey all the rules of the conference.
Generally the conference makes as high rate
as possible for the new line. 1t may be that the
,ate Is so hgh that the line cannot expect to get
business away from other lines with which it might
compete. This. of course, is to the advantage of
'he members of the conference covering the same
points as the new line. Sometimes the companies
cannot reach any agreement TO rates and the
conference is temporarily suspended The Anchor
Lime, Tor instance, may want to cut the rate
certain kind Of traffic 81 The other lines object
II the Anchor Line should insist carrying out its
cuI without the sanction of the conference 1t
would be Disseminated against by the of the
conference all over the United States.
The rules governing the conference agents are
tAceeulhsIy strict Each agency in this city has to
deposit $3.50 to bind itself to keep any rule that
may be promulgated. If any violations dis
covered the agent is called on for an explanation.
and II 1t is not satisfactory he is often fined and
sometimes his agency taken away from him. The
following order sent out on the letter head of the
Transatlantic Passenger Conference. dated NOvem-
ber 1905. gives idea of how that organization,
which is composed of a combination of the North
Atlantic, the Continental and the Mediterranean
conferences. works;
To all Members Of the Conference: It is re-
ported that all lines have agreed to disqualify
Hotu & Co. at all of their several offices. Lines
are required TO cancel this agency a once?
This was signed by Sidney f Morse. acting
secretary OF the Transatlantic Passenger Confer
ences. This same man, acting as secretary Of the
Continental Conference, sent the following letter to
the Franklin Savings and Trust Company. Of Pitts
uvhi hold ticx in Anrf1
Complaint has been preferred, supported by
affidavit. that there was purchased at your office
Ticket Agency. Frank ZOtti & Co, No 1OS Green
Wich street New York. in violation OF Rule :, Con-
ference Circular No. Y. copy enclosed The order
IN question Is In my possession. and as this is q
test case, You are requested 10 refund the gross
amount, namely $50 So TO me. and the order Will
be returned to you. Your explanation in the form
Of an affidavit IS requested within seven days
steamship agency was rebuked by the secre-
tary of the conferences for advertising 10 sell
tickets on the French line 81 cheaper than any
other agent.
Please advise me how you are able to do this ="
wrote the secretary. You should Immediately con-
form all advertising TO the strict letter Of the
ference rules, and are to notify you have done
so, The matter will be presented at the next meet
ing OF lines for their action. when II is expected
your reply Will be at hand"
The tone Of all these letters shows that the
secretary acts with authority. There is evidence
10 show that the Western Passenger Association
not only recognizes the steamship conferences but
holds meetings with them. The immigrant busi-
to tho various railroads by the Trunk Line Asso-
citation and the Western Passenger association
At a meeting OF the advisory committee. Immigrant
bureau. Of the Western Passenger Association held
I'm this city the latter part of May an effort was
made 10 control the immigrant business handled
through Galveston and New Orleans
The advisory committee thought that some Of the
lines not In the Western Passenger Association.
notably the Missouri, Kansas & Texas and the
Chicago & Great Western were getting more than
their share Of immigrant business originated in
I,rIropa bv the agencies OF Frank ZottI. They in
fivg haf hey
slider it IN accordance with their obligations TO
,,.r, .ro ,,,r,ic,raftop orders OF Zotti After n
conference with the steamship companies the rail-
roads were informed that negotiations were pend
ing that would have the effect Of controlling the
business and that any OF the steamship agencies
found be dealing with Zotu or operating 9hqer
his outside arrangement" would be disqualified
At this same meeting protest was made be-
cause some If the members OF the Trunk Line AS
sociatiou paying commlSst1 1ns - the Russian
Volunteer Fleet. the Scilian-Amertcan Line and
Lloyd Sabaudo. which were not members OF the
steamshiu conferences showing a connection be
tween the railroad and the steamship coInoiha-
lions The following, from the minutes of the ad-
visory committee shows how they control or
allot immigrant business:
AN intercsted line made a statement that when
Peter Mcdonnell was accepted as an agent Ct the
Immigrant bureau Il few years a,,o Tart or the
understanding upon which he came i as tfat he
should give the Missouri Kansas & Texas a Ger
tain amount OF business; that this amount was
left indefinite. pending decision Of the advisory
committee as to the allowance that should be made;
tbst tba Missouri Kansas & Texas business had
portlon ana that. while Mr.. Mcdonnell was un-
derstood to be reporting all of his business 10 the
bureau the Missouri. Kansas & Texas business
was not being reported. there was no Under
standing to that effect, hence II appeared desra-
bic that some better understanding s1oiid be ar
rived at in order bring about more satisfactory
control of the traffic if practicable
1t Is understood that some of those Interested In
rbe Russian Volunteer Fleet, one of the steam
shin companies said 10 be Disseminated against by
The companies In the conferences are seriously con-
sdering the advisability of taking the question 10
rliCl De
cal law 10 prevent the other companies from dis
crtrnnatinR against 1t because 1t does not care 10
live nm TO the rules of the steamship conferences
and therefore is not allowed membership in that
body.