New-York tribune., 1911-01-05
Government Attacks Atlantic
Conference for Conspiring
to Restrain Trade.
SUES UNDER SHERMAN LAW
Various Lines Admit Agreement
Dividing Steerage Traffic
Authorities Estimate at
$55,000,000 Yearly.


eral Wickersham. instituted proceed
ings yesterday in the United States Cir
cult Court for the dissolution Of the At
lsntic Conference, a combination Of the
principal steamship lines carrying pas
sengers and freight between the ports
Of the United States and those of Eu-
rope.
A representative Of one of the largest
steamship companies included In the
suit said that the proceeding was a
friendly suit in equity agreed on several
months ago by the steamship companies
and Mr.. Wise, and that the suggestion
came from the steamship companies in
order that IL might be determined
whether their method Of doing business
was in accordance with the laws OF this
country.
He admitted that there was an organi-
cation known as the Atlantic Confer
ence, composed OF the steamship lines
named in Mr.. Wise's complaint This
combination. he said, fixed the rates not
only for steerage passengers. but also
for both first and second class passen-
gers sailing in both directions. and also
apportioned the traffic among the va
rious lines In the combination and fixed
a penalty for any line carrying more
than its proportion OF the traffic, which
provided compensation for those lines
not receiving their full share OF the busi-
ness.
Continuing his explanation Of the suit.
he said:
This case had its inception In the re-
batting charges brought against the Hoi-
land America Line more than year
ago. In the investigation Of these
charges there was revealed letter from
Adrian Gips. agent of the Holland
America Line, in which he said that cer-
tain rates must be kept strictly conf
DENTAL. as they were made In violation
of the general agreement. This gave
the government it's first intimation that
there was a rate agreement among the
transatlantic steamship companies.
Grand Juries investi tisated.
"After the disclosures made In this let
ter representatives OF several OF the COM
panies were called to the United states
Attorneys Office and closely questioned
Following this, there were Investigations
bv the two federal grand juries Of Feb
ruary and March last, and every attempt
was made by the government to indict
some of the officers of the steamship
conpanies. No indictments could be Sc
cured
AFTER these attempts by the govern
ment had failed, the steamship compa-
ntes. through the foreign consuls In this
citv. went to the United States Attorney
and asked II something could not be done
to determine whether their business, as
conducted under the agreement or the
Atlantic conference, was legal. They said
that il It was not, they wanted 10 make
such changes as were necessary 10 con-
form with the law.
"As a result of this conference with
Mr.. Wise It was decided that a friendly
suit in equity should be brought against
the steamship companies, 10 which they
would demur and the matter would then
be before the courts for settlement. All
the rates, however. have been made in
Europe. No agent here has the power TO
fix a single rate.
1T is true that the traffic has been
apportioned among the various lines in
the combination. and when IL is found
that one line is carrying more than its
share Of the traffic that line is fined.
These fines are divided among the lines
that do less than their share Of the busi-
ness. And another way Of equallzins
the traffic is by raising rates on lines
that are getting an excessive proportion
of the business, passengers being thus
diverted from one company to another.
ut is true also that our rates have
been changed frequently and suddenly TO
conform TO those OF some competing line;
but this is all done on orders from the
other side. The Uranam Line is the one
that has given us the most trouble in
this regard. We have been unable 10
find out who owns that line; but We
have found that when we made rate
of $50 from some European port TO New
York its ships would suddenly appear In
that harbor and offer rate of $50.
while its agents got commission OF
from So to So a passenger. as against 4
commission of 81 TO our agent. In such
a case the only thing for us to do was
TO meet their rate.
"The committee appointed by Congress
investigated our business and questioned
the officers of our companies closely.
CONGRESS Committee Satisfied.
when they were through they told US
they did not see, as plain business
proposition, how we could conduct our
affairs in any other way than as We
did"
The action brought yesterday ny
United States Attorney Wise under the
sherman antitrust law was directed
against the following steamship COM
NAMES and certain OF their officers: The
Allan Line Steamship Company. Limited.
British corporation. and its agent
Bryce J. Allan, of Boston; the Interna-
tional Mercantile Marine Company.
New Jersey corporation. which holds
and votes majority OF the outstanding
capital stock OF the International Navi-
CATION Company. the Dominion Line. the
Red Star Lire and the White Star Line
and owns the American Line Jointly with
the International Navigation Company. a
British corporation. which Is also a de-
fendant in the suit. and Philip A. $.
Franklin and John Lee, vice presidents