The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-03-31
STEAMSHIP POOL
WILL Be ATTACKED
United States Will Sue Under
the Sherman Law
TRUST LAW VIOLATED
Fact That Vessels In the Pool Touch
at American Ports Is Basis for
the Suit Which VIII BE
Instituted
TRUST LAW VIOLATED

Washington, March 30-Suit in equity
under the Sherman antitrust law is to be
instituted by the department OF justice
against what is known as the European
steamship pool, on the contention that 1t
is an arrangement in restraint of trade.
The fact that the vessels owned by the
steamship companies forming the pool or
a number of them, touch at American
ports. is basing of the proceedings against
them under the Sherman law, as that
statue gave the government jurisdiction
TO punish violations of the law affecting
both interstate and foreign commerce.
Most of the companies involved in the
proposed proceedings are foreign corpora
tons
The matter has been under advisement
for a long time, and it is expected the
suit will be instituted in New York. the
American headquarters of most of the
lines involved in the pool. United States
District Attorney Henry A. Wise. who
has been conducting the inquiries on be-
half of the government, probably will
direct the suit
The grand jury's investigation it is said,
developed the fact that the pooling ar
rangement embraced the transportation
of both passengers and freight On the
American side of the Atlantic, it was
charged that the arrangement has Its
ramiflcatio in the shape of rebating by
railroad companies Because of the pecu-
liar conditions affecting the situation the
government was put to considerable
tai m hipb
to base charge
The investigation is said to have de-
veoped a case embracing the whole of
the immigration traffic from every coun-
try in Europe. The operations of the pool,
also. it was charged. seriously interfered
with the work of American steamers ly-
ing at American ports awaiting cargoes,
the foreigners undertaking them and get
ting the traffic.
What seemed at first to be a case Of
limited scope as the investigation pro-
ceeded, developed into one having many
qualifications. In some respects, it is said,
the issue has a counterpart in the Amer
lean Tobacco trust cases. in which several
of the foreign companies were involved.
w ME the government GdiiiiOA Wins SAAe
TO dissolve foreign corporation il may
Institute proceedings Affecting its opera
tons as practiced in American territory
and if the corporation is found guilty of
violation of the provisions of the Sherman
law. the government can secure an in
junction TO stop such illegal acts.
When the government first started an
inquiry last autumn into charges OF vio-
lations OF the Sherman law by the pool
the case involved a few steamship lines
and railway companies in the United
States having their eastern terminus in
New York city. AS it progressed its scope
broadened with the result that the opera
tons of three great steamship pools were
being looked into Five indictments
were returned which included the resi-
dent officers of one Of the lines under in
vestigation. When the government first
heard of an alleged agreement with the
railroads in this country to the west the
trade was supposed to be confined TO salt
fish from the northern parts OF Europe.
Later il was ascertained that immigrants
as well as merchandise of nearly all
kinds were handled the same way.