The news-democrat. (Providence, R.I.) 1906-1909, 1907-06-20
AMERICAN TRADE
1T MERCY Of 4
FOREIGN TRUST

Washington. June 2O.-Acting on a COM
plaint that the Hamburg American Pack
ct company, backed by the government,
dictates terms. routes and rates TO ship
pers all over the United States who for
ward goods TO Balti cports. diverts freight
to and from American ports at It's own
will without regard To the natural How or
trade and uses coercive and unlawfui
methods TO crush competition, the inter-
state commerce commission Is about To
begin the most stupendous inquiry IL mas
made In it's whole existence.
The Cosmopolitan Shipping company or
philadelphia which operates lines To Rot
terdam, Leith and Copenhagne. hgures as
complainant i'm the case and charges that
an ironclad trust exists between the Ham
burg American Packet company, the
North German Lloyd, the scandinavian
American Line and the Wilson (HulD
Line, and that this pool apporuons the
volume of traffic each OF Its members
shall carry, and for what port or ports
each line shall make it's sailings, thus IN
yolving the apportionment of traffic ori-
ginating I'm Western cities, both as 10
character and amount. between the ciues
of the North Atlantic seaboard.
IL IS charged that the combination con-
trolls absolutely 81 per cent OF the rtaHlc
from interior American cities 10 contl-
mental European points, and the comoi-
nation by prejudice or malicious pol
icy can divert traffic to or from any one
or all OF the ports OF Boston, New YORK.
Philadelphia, Baltimore, Norfolk ana
Newport News.
The Cosmopolitan alleges that efforts TO
rehabiltate the American merchant ma
rine are hampered and rendered abortiye
by this monopoly and that there Is littie
use in legislation for the benefit OF the
American shipping "if at the same time
gntaf Iax a
lated by an unscrupulous foreign corpora
ton in its effort to suppress American
competition on land and sea-"
In connection with the complaint the
Cosmopolitan Lines submitted copies or
the combines rebate form OF contracts
and il is alleged that these show that
shippers are bribed and squeezed 10 com
pei them to submit TO the monopoly. III
Is charged that the Hamburg American
Packet company's monopoly begins with
the state-owned railroads In Germany,
which give the corporation rebates ana
that the company forces all European
shippers TO sign an ironclad contract pro-
viding for liberal rebates In return Tor
exclusive shipments by its lines
The first contract shown names Ham
burg and Rotterdam as European ports
and Boston and Newport News as Amra-
can ports, and agrees that rebates Will
be paid TO shippers as have shipped ali
their goods between the ports named
exclusively by steamships OF the under
signed companies, provided, always, that
the shippers have not been Interested In
direct or indirect shipments by any other
steamers than those mentioned either as
owners OF the goods or as agents. whether
directly or Indirectly"
According to the complaint, revised
forms have supplanted this rebate con-
tract and extended the monopoly. 1t IS
charged that under the existing contract
which European shippers have to sign
they must ship every pound OF freight
for Boston. New York, Philadelphia, Bal
timore, Norfolk and Newport News ny
trust" lines, whether they go through
German, Belgian or Dutch ports. or the
routing of which can be I'm any way con-
trolled by the merchant. Further, II is
charged that the merchant who ships one
by an independent line can
not ship any at all by a line in the COM
bination.
Summing up It's grievance. the Cosmo-
poiitan Lines allege further:
For the year 1906 every one OF the
sailings Of line steamers from Hamburg
to the six United States North Atlantic
ports was by steamers of the Hamburg
American Line or by vessels controlled
by It, The Hamburg American Is able
to arbitrarily control the import trade
of the principal American seaports with
Germany. This company dominates
through its manipulation of rates the In
terchange of commodities between Ger
many and the interior of the United
The complainant asks the commission
whether this domination Is wholesome
and whether IL Is not such menace to
the trade of the United States as TO de-
mand supervision or regulation by the
United states government.
Continuing, the complaint says:
mot q pound OF freight can move from
any interior city OF the United States via
the six great Atlantic ports TO Hamburg
without the permission of the Hamburg
American Packet company Thus a COM
pany foreign In Its control dictates the
rates. the line. the method, the routes and
every other condition of trade and traf-
10 TO which the American producer, man
ufacturer or shipper must humbly sub
nit"