Evening star., 1909-09-13
OCEAN FREIGHT PACT
Alleged Conspiracy of Steam
ship and Railway Lines.
OFFICIALS ARE RETICENT
Cases Before Grand Jury in New
York.
INDICTMENTS EXPECTED SOON
First Prosecution for Acts in Re-
straint of Foreign Com
merce. &
OFFICIALS ARE RETICENT
INDICTMENTS EXPECTED SOON

merce.
In Official circles here more than ordf>
nary interest is excited over the investi-
cations in New York into the alleged ille-
gal operations of some of the transat-
lantic steamship lines, especially the Hol-
land America line. The charges that these
lines have entered into conspiracies with
certain railway lines In this country In
restraint of trade; that rebates have been
paid them by some American railroads.
and that they have laid themselves liable
to prosecution under the terms of the
Sherman antitrust act did not come as a
surprise to those who had followed what
was known as the Cosmopolitan shipping
case before the interstate commerce com
mission.
That proceeding was brought by the
Cosmopolitan Shipping Company OF Phil
adelphia against the Hamburg American
Packet Company and other transatlantic
steamship lines. 1t is alleged that the
ocean lines named had entered into an
arrangement with American railroads by
which the bulk Of European freight sent
to this country was handled by the
steamship companies in the pool, to the
detriment of the Cosmopolitan company.
which also operates a line Of transatlan-
tic steamers.
The interstate commerce commission
Investigated the complaint thoroughly,
adducing a mass of testimony bearing di-
rectly on the allegations of the complaint.
Some OF the evidence taken appeared ~
involve some OF the defendant lines in
violations OF the Sherman antitrust act.
The entire mass Of testimony was turn
ed over to the Department OF Justice for
such action as 1t might determine to un-
dertake.
Opinion Of Interstate Commission.
The opinion OF the interstate commerce
commission in the case was, in brief. that
it had no authority over the operations OF
transatlantic steamship companies as 10
any rate of arrangements they might
make, provided it was not shown posi-
lively that there was violation of the
interstate commerce act. The opinion of
the commission appeared to indicate that
there was no such violation, as the case
was dismissed.
What bearing the testimony taking in
the Cosmopolitan case had on the present
case is not known. Except In an aca-
demfc way. the interstate commerce
commission has no knowledge of the pres
ent inquiry. Judge Martin A. Knapp.
chairman of the commission, said today
that the proceedings had been instituted
by the Department of Justice and that
the commission was not cognizant of the
details.
One OF our attorneys, said Judge
Knapp, because of his familiarity with
kindred proceedings, has been designated
to assist the district attorney at New
YORK In the matter, but further than that
l know no more than has been publish.
ed in the newspapers
Proceedings Under the Sherman Law
In the opinion of lawyers who have been
consulted, the likelihood is that the pro.
ceedings are to be instituted against the
ocean steamship lines under the Sher.
man antl-trust act, with a view to bring.
ing 10 DOCK the American agents of ths
ocean lines. Whether they can be held
determined.
Attorney John H. Marble of the inter-
STATE commerce commission is assisting
District Attorney Wise of New York He
has been identified with many proceedings
OF similar kind. being associated with
Commissioner Lane. who has direction OF
criminal prosecutions instituted by the
commission.
1t was suggested today that the visit Of
Commissioner Lane to Europe this sum-
mer probably has something to do with
eign steamship lines. He has been
abroad for nearly two months and II is
known that he has been conducting in
quir1es into the freight rate situations in
E-uAOpSdu countries ana into the opera
tons or the continental railway lines and
the ocean steamship lines with respect to
the traffic with the United States 1t is
likely that Commissioner Lane will arrive
mere In the near future. but the precise
date of his arrival is not known
The pooling Of the steamship lines. il is
charged. has even wider ramifications Not
only are the regular transatlantic lines
involved In these various charges, but the
South American steamship companfes
nj irxra
that is being carried on very quietly by
the government The charges affect par
ticularly the coffee trade. which is one OF
the predominating factors in the freight
traffic between the United States and Bra
I'll and other countries on the South
American continent The inquiry as to
the alleged combination of these South
American companies is with view to- de-
velOping the possibility of violations Of
the Sherman antitrust law, the Elkins
law or other federal statutes. and if the
investigation, so far incomplete, sustains
the charges that have been presented.
prosecution that will follow largely the
lines of the transatlantic case will be
pressed by the government.
The investigation of the South Amer.
ican steamship lines is not as well devel-
oped as the transatlantic case. which has
been going on for six months or more,
and the territory and field Of influence
are by no means so broad, but the allie
cations are of a startling character and
IL sustained by the investigation promise
very important developments.
officials Are Reticent.
The Department Of Justice officials are
observing the utmost reticence and so far
have refused to give out any information
bearing on the subject. Wade H. Ellis.
the assistant to the Attorney General,
who is In charge of the antitrust and in
terstate commerce litigation Of the gov
ernment, was asked regarding the
charges today. He expressed surprise
that the matter had become public and
declined to say anything on the subject
1t was learned, however, that the as
sistant district attorney at New York
was here about fortnight ago and had
a conference with officials of the De-
partment of Justice regarding the cases
now before the grand jury. The meeting
was kept very quiet, but the whole sub
ject is said to have been talked over at
that time. What the details of that con-
ference were are not known. but IL is evi-
dent that the New York district attor-
ney's office got instructions to proceed
with the case before the grand jury and
that il any indictments are returned by
the grand jury they will be not only
ogairc3 the various companieS themselves