The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-01-05
Government Brings Suit In Equity
Against Ship Companies Which
Have Agreement Re-
sardins Rates.
INJUNCTION IS ASKED
Contract Made In London Two Years
Ago Whereby Certain Conn
panIes Divide up the
steerase Traffic.

ment has brought suit in equity in
the United States Circuit Court OF
New York under the Sherman act
which is now more than twenty years
old, to restrain British. German,
Dutch, Russian and American pas
senger-carrying Atlantic lines. mem
bers of the Atlantic conference, from
entering or clearing from the ports of
the United States at all unless they
abandon an agreement as to steerage
rates alleged to have been entered
into in London in 1908, and described
as monopolistic.
The Sherman act declares that ev-
cry contract, combination or conspir-
acy in restraint of trade with foreign
nations. as well as between states, is
illegal and that everybody who enters
into it may be fined $4,000 or impris-
oned year, but the practical way OF
enforcing the law in this case
against the British and Germans, for
instance, is deemed to be the closing
of the potts Of the United States to
their ships by means of civil pro-
ceeding.
The defendants named are the Allan
Line Steampship Company, Limited,
maintaining the Allan line, the Inter
national Mercantile Marine Company,
a. New Jersey corporation, controlling
! the American line and others, the IN
1 ternational Navigation Company, Linz
tied, maintaining the American line;
!, the Anchor line (Henderson Bros.
Limited; the Canadian Pacific Rail
| way Company; the Cunard Steamship
/ Company. Limited; the British and
North Atlantic Steam Navigation Co.,
Limited, maintaining the Dominion
!! line: the Hamburg-American line; the
1 Holland American line; the North Ger
man Lloyd line; the Red Star line; the
Russian-American line, and the White
/ Star line
1 The individuals named are Bryce J.
1 Allan of H. & A. Allan of Boston,
agent for the Allan line; Philip A. s.
Franklin and John Lee. officers of
the International Mercantile Marine
Company; William Coverley, agent for
the Anchor line; Charles p, Summer,
agent for the Cunard line Emil H.
Boas. resident director of the Ham
4 burg-American line; ADRIAN Clips,
4 agent Of the Holland-American line;
j Gustav H. Schwab. Herman c. Won
4 Post and Gustav H Schwab, Jr., of
Oelrichs & Co. agents OF the North
German Lloyd and Alexander E. Jonn-
son Of A. E. Johnson & Co., agents for
the Russian-Amercan line
The petition alleges that these de-
PENDANTS are engaged in combina-
tion and conspiracy to destroy all
competition among themselves in the
business of transporting third-class or
steerage passengers between ports in
the United States of America and port
in Europe, and also are engaged in de-
stroyine competition by all persons
and corporations other than them
selves.
The contract upon which the action
is based is alleged to have been en-
tered into in London on February ),
1905. Under this contract the defend
:, ant steamship l,ras with the eXcep-
ton of the Russian-American line,
are alleged to have formed themselves
into the Atlantic Conference. Under
the terms of the contract, it Is alleg-
ed the parties thereto agreed to di-
vide up the steerage traffic forwarded
by them, each line receiving a percen
tage of the total and that each agreed
not to carry steerage passengers in ex
cess of the allotted percentage
penalty of $50, it is alleged, was
prescribed for every steerage passen
ger carried in excess of the allotment
the forfeit TO be divided among those
companies which had not carried theil
share.
Further provisions of the ALLEGED con
tract are that whenever line carries
more or less than its agreed percen
tage of traffic. ii shall raise or lowe
its rates to make its business NEE
the agreed percentage and if this ey
pedient does not have the desired
effect. more drastic measures shal
be taken, 1t being provided that wher'
J ii is possible the percentage shall b.
adjusted by raising, rather than low
ering, rates.