Evening star., 1909-09-12
STEAMSHIP REBATES LAID BARE
WRONG CLASSIFICATION OF
SHIPMENTS CHARGED.
Government Investigation Complet-
ed-Facts to Be Laid Be-
fore Grand Jury.

Special Dispatch to The Star.
NEW YORK, September 1.-THE New
York World this morning prints two
pages Of expose of railroad rebating and
steamship lines in pool. Amazing alleged
conspiracies are revealed to the govern
ment prosecutors who will investigate it.
Acting on information and documentary
evidence furnished by the World. the gov
ernment has practically completed it's pre-
liminary investigation Of gross violations
OF the Sherman antitrust act, the act to
regulate commerce. the Elkins rebate law,
and existing features of the Wilson tariff
act by several transatlantic steamship
lines and railroad companies operating
within the borders of the United States.
While all definite information is re-
FUSED at this stage of the investigation
by the Department of Justice at wash
lngton, the department of interstate
commerce, and by the United States at
torney for the southern district of New
YORK, the World correspondent at
statements that several officials of the
steamship companies and railroads
have been subpoenaed to appear We'd
| nesday, September 10, before the fed
eral grand jury that convenes in New
York next Tuesday.
guarded both in Washington and New
York Application to the Department of
Justice and to the United States attorney,
Henry A. Wise. and assistant United
States district attorney, John w. H. Grim,
for the names of these officials elected the
information that no public announcement
will be made regarding the case until the
grand jury has concluded it's labors.
The offenses which Attorney Wise and
Mr.. Grim. acting In cooperation with the
re nf ho INF toto
mission, have been investigating are of
the gravest and most sweeping character.
The evidence in their possession shows
that the offenses have been committed
within the last three years.
Regarding the payments of rebates al
legged, the offenseS charged are:
l. That payments of rebates have been
made to the Holland-American Steam
ship Company, operating line of trans
atlantic passenger and freight boats be-
tween Rotterdam. Holland. and American
ports. by railroads. under secret agree
ments and private arrangements In vio-
lation of the Elkins rebate law as
amended.
shows to have been guilty of these of
fenses are the Central of Vermont the
Wabash. the Ontario and Western, the
New York Central. the Baltimore and
Ohio, the Chesapeake and Ohio. the
Erie. the Chicago. Milwaukee and ST.
pany. These railroads are declared to
have paid rebates to the HollandAmer-
ica Steamship Company during the
years 1907, 1908 and 1909.
THAT there exists a conspiracy in re-
straint of trade in violation of the Sher-
man antitrust act and under agreements
negotiated between the Holland American
Steamship Company, the Cosmopolitan
Shipping Company. the Hamburg Ameri-
can Packet Company, the North German
Lloyd Steamship Company. the Metro
politan Steamship Company, the Wilson
line. the Russia and East Asiatic Steam
ship Company. the Scandinavian Ameri-
can and Red Star line, the purpose of
such agreements being to regulate ocean
freight rates to the detriment of shippers
B. That the Holland-America Steamship
Company has resorted to the wrong classi-
fcation of shipments and unlawful certifi-
cation of weights of the shipments in vio-
lation of the act to regulate commerce and
with intent to defraud the government.