Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-06-05
SUES 4SH|P TRUST
Government Files Action
AGAINST Brazil Lines.
REBATING Is ONE CHARGE
Conspiracy to Destroy All Compe.
tition Also Alleged.

NEW YORK. June 5.-The national
government filed q civil antitrust suit
in the federal district court here today
against steamship interests alleged to
have monopolized the transportation of
, passengers and freight between the
United States and Brazil.
Sweeping charges of granting rebates,
fixing arbitrary and unreasonable rates
and entering into conspiracies, combina-
tions and agreements in violation of the
Sherman law are made against the
Prince line, limited: the Hamburg lines
and the proprietors of the Lamport and
Holt line.
Charges Combination.
For five years, the government says,
these steamship lines and certain Of their
officers or agents, who are named as IN
d.vidual defendants. have combined and
conspired to destroy all competition in
the traffic between the United States and
Brazil
Through the instrumentality of traffic
and pooling agreements and conferences
for concerted action. it is charged. dates
OF sail ng have been appOrtiOntd, profits
div ded, freight rates fixed and discrimi-
nations leveled at sh ppers who refused
to patroniZe the defendants exclusively.
The court is pet toned to declare the
dliSkeu COIlDlHdUOH d FeSITdHI Oh 4fduc
in violation of the Sherman law and to
forbid the vessels of the defendants enter
ing or clear ng any port of the United
States as long as the contracts, agree
ments and practices of which the govern
ment complains are continued.
The government app les for a series of
injunctions prohibiting all parties con-
cerned from granting rebates or bonuses,
from fixing iates and from elimina ting
competition among themselves or de-
g @ ba of RI An int
locutory injunction is sought to restrain
the steamship lines from continuing their
alleged unlawful methods during the
pendency of the suit
The fol owing are named i'm the bill as
defendants: Prince Line. Limited: James
Knott of NewcaStle-on-Tyne, Eng and !;
| Paul :. Gerha'd. Francis j. Zimmerman,
Charles +. Gerhard Harry Connor of
Iy, Arthur Cook. &. Sidney Jones of Liv-
erpool. owners of the Lamport and Holt
Line; +: ederick T. Busk. Lorenzo Dan
iels, William Gein of New York, Ham,
| burg American Packet Line. Hamburg
South American Line, Paul Gottheil,
William Sickel. Thomas A. Sparks WI
helm. Voelkens, Fl. w. Voelkens. w. L..
Walter, Robert Fl. Goodwin, Clement H.
Belts and Henry II. Garvan of New York.
Filed by Attorney Wise.
The petition in equity was filed by
\ lult<u otdtts <tttOihSS w iSc VI view VI n
on behalf of Attorney General Wicker
sham. In addition to the Attorney Gen.
| eral and the district attorney the bill
was signed by James A. Fowler. assistant
| to the attorney general. and Stanley d.
| Montgomery. special assistant to the
attorney general, who investigated the
case and who will have charge Of the pro-
ceedings
The defendant lines, which are incor-
po, ated in Europe, make regular round
trips between New York and Brazil and
one-way trips between Brazil and New Or
leans and other American ports. Their
monopoly of the bus ness. the petition as
serts, Is complete except for lone small
independent line. the Lloyd Bra :ileire.
operating steamsh ps with in.requent
sailings,' and a small and decreasing
number of tramp steamers plying at ir-
regular intervals
Alleged Relating System.
Under the system of rebates. 1t is de.
| clared, shippers receive 10 per cent re.
turn OF the amount they pay III freigh,
! rates provided they give for certain
periods all their transportation business
to the defendants, who are alleged to hav,
sought to coer>e h ppers an destroy com
petition by refusing altogether to carry
goods for those who declined TO ship ex
clus. vely by the defendant carriers.
A written traffic agreement in further
ance of the alleged unlawful combination
was signed at London February IA. 1908
according to the petition. This corpora
tive ARRANGEMENT is still in effect, tn,
government charges.
/ A written pooling agreement. the gov
ernment declares, was negotiated July 8
4 1908 While this was terminated June
1 80. 19t9 the pc .ition charges another
n, ol;ny agreement was entered into dur
ing I at year which is believed to bt
similar to the discarded instrument
Regular meetings of the defendants
known as the London conference, II !.
alleged have been held in London foi
the purpose of establishing arbitrar,
schedules of dates of sailing. Represen a
tives of the defendants. it is added. have
held weekly meetings in New York. knowr
as the New York conference, wher'
freight rates have been fixed and In som,
instances preferential treatment author
ized to particular shippers.