New-York tribune., 1909-09-13
OCEAN LINES ON GRILL
SHERMAN Law INVOkED.
Department of Justice 4ctiue an In
UestigatiOn Here.

Washington. Sept. 12.-In official circles here
more than ordinary interest is excited over the in
westigations In New York into the alleged illegal
operations OF Of the transatlantic steamship
lines. especially the Hollspd-America Line Ihe
charges that these lines have entered into conspr-
acies with certain American railway lines In re-
stranf OF trade; that rebates have been paid them
by some railroads. and that they have laid them
selves liable prosecution under the terms OF the
Sherman antitrust set did not come as a surprise
60 those who had followed the proceedings IN what
was known the Cosmopolitan shipping case BEFORE
the Interstate Commerce Commission
That proceeding was brought by the Cosmopolitan
Shipping Company, OF Philadelphia, against the
Hamburg-AmeTican Packet Company and other
transatlantic steamship lines II is alleged that the
ocean lines named had entered into arrangement
with American railroads by which the bulk of Eu-
ropean freight to this country was handled by
the steamship companies in the pool 10 the detri-
of the Cosmopolitan company, which also oper-
afes a line of transatlantic steamers
The Interstate Commerce Commission investigat-
ed the complaint thoroughly. adducing a mass OF
testimony bearing directly 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 turned over 10 the Department Of
Justice for such action ii might determine TO
take. The opinion OF the Interstate Commerce
Commission in the was. in brief that II had
authority the operations OF transatlantic
steamship companies TO any rate arrangements
they might make provided it not shown posi-
fively thai there violation Of the Interstate
Commerce act The opinion Of the commission ap-
peared 20 indicate that there no such violation.
as the case was dismissed.
COMMISSION NOT INVOLVED.
What bearing the testimony taken in the Cosmo-
politan had the present case is not known
Except IN academic way, the Interstate Com
Fnerce Commission has knowledge Of the present
inquiry. Chairman Knapp said to-day that the
proceedings had been instituted by the Department
OF Justice and that the commission not cog
infant of the details.
''One OF attorneys" said Judge Knapp be
of his familiarity with kindred proceedings.
has been designated TO assist the District Attorney
New York in the matter, but further than that
1 know more than has been published in the
newspapers'
In the opinion OF lawyers who have been con-
suited the kelihood is that the proceedings are TO
be instituted against the ocean steamship lines
under the Sherman antitrust act, with a view to
bringing 20 book the American agents OF the ocean
lines.
John n Marble. attorney OF the Interstate Com
Tnerce Commission. is assisting District Attorney
Wise Of New York He has been identified with
many similar proceedings, being associated with
Commissioners Lane, who has direction OF criminal
prosecutions instituted by the commission
Il was suggested to-day that the visit OF Com
missioner Lane TO Europe this summer probably
had something TO do with the inquiry INTO me
Opers1ion OF the foreign steamship nhSS' slS Ho3
been abroad for nearly two months. and II Is
lrnoVn that he has been conducting inquiries into
she freight rate situations in European countries
and into the operations OF the Continental runway
lines and the ocean steamship lines, Win respect
IN the traffic with the United States 1t is likely
,bss Commissioner Lane viii return here IN the
near future.
The pooling Of the steamship lines il Is charged'
has even wider ramiacaaiOns. Not only are the
rss7Iar transatlantic lines involved IN these va
-io,,z charges hut the South American Steamship
oomnauies have been brought into an investigation
,hst A. beiug carried on very quietly by the gov
ernment The charges affect particularly uhe Ooie7
trade which is one OF the predomlhauns iaN'oi
An .be freight traffic between the United otales dh
sF7razu and other countries on the South American
--srIan, The inquiry as 70 the alleged COM
hinstjon of these South American companies -
with a view 70 developing the possiohty OF Eloia-
,soos Of the sherman antitrust law. lhe ElAiuS
lov or other federal statutes and II the ihNeslis
ION As vet incomplete sustsins the charges
prosecution that will follow largely tne iles % en
.ransatlantic case Will be pressed by the govern
ment.
OFFICIALS PROVE RETICENT
,r,a Investigation Of the South American steam
shin lines is not well developed @S INC -,
stlansie case which has been gong on loi -N
oDtl,s or more and the territory ana heio OF HI
a 60 ~, no means as broad, but the aless-
&C are of a startling character and, II sustalheo
tv the investigation. promise important ue'eioP
,nenfs Oficials Of the Department OF Justice @i'
observing the utmost reticence. WADE II EAilS' aS
sistant TO the Attorney General, who Is ia caai
os the antitrust and Interstate Commerce huga-
zion ~ the government, was asked regarolhs tiie
charges to-day He expressed surprise that the
matter had become public, and declined 10 say
anything the subject
II Was learned, however, that the Assistant DIS
triot Attorney at New York City was here aDout
fo,r.risht ago and had a conference with ofnelals
~ the DEPARTMENT of Justice regarding the cases
now before the grand jury. The meeting was
kent quiet, but the whole subject is said TO nave
heen talked over What the details OF that con-
serenee we're is not known. but it is evident that
,ba New York District Attorneys Office got in
st,1,ctions 10 proceed with the case before the
Grand fury, and that if any indictments are re-
turned they will be not only against the various
comnauies themselves. but also against certain
oeicials OF those companies by name.
The governments crusade along these lines
,rainst the transatlantic companies marks a dis
tfnct advance in the annals Of anfi-corporafion
litigation. Il is probably the first case in which
she Depsrtment Justice has instituted prosecu-
fon for acts in restraint OF foreign commerce under
the Sherman antitrust law Of 1880. The proceed
ing in this regard is based the explicit phrase
..or with foreign nations in the Sherman Law,
that act fixing punishment OF a t5.oo fine or not
exceeding one years imprisonment or both on
every person who shall monopolize, attempt to
ynonopolize or combine cOnspire with any other
person or persons 20 mOnopollze any part OF the
trade or commerce among the several states. or