The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1909-09-14
MAY PROSECUTE
STEAMSHIP LINES
GOVERNMENT INVESTIGATING
TRANSATLANTIC COMPANIES
South American Lines Are Also To
BE Investigated To See II They
Are Violating Law.
RESTRAINT OF TRADE CHARGED

Washington, Sept. 14.-1n afficial
circles here more than ordinary in
terest Is expressed over the investi-
cation in New York into the alleged
illegal operations of the trans-Atlan-
tic steamship lines, especially the
Standardization. The charges that
these lines have entered In conspira-
cies with certain American railway
lines in restraint of trade; that re-
bates have been paid them by some
railroads and that they have laid
themselves liable to prosecution un-
trust law did not come as surprise
to those who had followed the pro-
ceedings in the Cosmopolitan ship
ping case before the interstate com
merce commission.
The proceeding was brought by
the Cosmopolitan Shipping company
of Philadelphia against the Ham
burg-American Packet company and
other transatlantic steamship lines.
1t alleged that freight for Europe
had been lessened by a pool ON the
part OF the defendants.
The interstate commerce commits
sion Investigated the complaint thor
oughly. and as some of the evidence
appeared TO show violations of the
Sherman antitrust act. turned over
the entire mass of testimony to the
department of justice.
The opinion of the interstate COM
mission in the case was, In brief,
that il had no authority over the rate
operations of transatlantic steam
ship companies. provided IL was not
shown positively there was viola
ton OF commerce act. The opinion
of the commission appears to indi-
cate that there was no such viola
ton. The case was dismissed.
Lawyers Opinion.
In the opinion of lawyers who
have been consulted, the likelihood
is that the proceedings are likely to
be instituted against the steamship
company under the Sherman anti
trust act. with a view to bringing TO
book their American agents.
Attorney John II. Marble. of the
interstate commerce commission IS
assisting District Attorney Wise of
New York. lie has been identified
with many similar proceedings.
The pooling of the steamship lines.
II is charged, has wide qualifications.
Even the South American steamship
companies have been brought into
the investigation, the charges affect
ing particularly the coffee trade,
which is one of the predominatins
factors in the freight traffic be-
tween the United States and South
American countries. The inquiry as
to the alleged combination of these
South American companies Is with n
view to developing the possibility OF
Violations of the Sherman antitrust
law. the Elkins law or other federal
statutes. and IL the investigation. so
far incomplete, sustains the charges
a prosecution that will follow largely
the lines of the transatlantic case
viii NC pltHotu ny Nht bof'i hhA'hNs
South American Lines.
The investigation OF the South
American steamship lines is not as
well developed as the transatlantic
case. and the department OF justice
officials are observing the utmost
reticence.
II was learned, however, that the
assistant district attorney at New
York city was here about a week ago
and had a conference with officials
of the department of justice. The
governments new crusade is prob
ably the first of the kind in which
the department has instituted n
prosecution for acts In restraint OF
foreign commerce under the Sher-
man antitrust law of 1890, based
on the one explicit phrase cor with
foreign nations" in the law, that act
penalizing restraint OF commerce,
fixing a punishment of $1,000 fine
or not exceeding one years imprison-