New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-06
ATTACKS STEAMER POOL
Government Alleges Monopoly on
Traffic to Gulf and Brazil.
FILES SUIT IN EQUITY
Prince, Lamport & Holt and Two
Hamburg. American Lines
Made Defendants.

\ third suit in equity aimed to break up
an alleged monopoly In oversee transpor-
tation established by foreign steamship
lines was brought yesterday on behalf Of
the government by Henry A. Wise, United
States Attorney. This time the traffic In
VOWED was that between New York. New
Orleans and Brazilian ports, and the steam
ship companies named as defendants in the
suit were the Prince Line. the Lamport *
Holt Line. the Hamburg American Line and
the Hamburg South American Line.
The governments petition gave the OBJ
ject OF the suit as one to restrain the de-
PENDANTS from continuing their unlawful
combination and conspiracy to monopolize
and restrain trade and commerce in the
carriage Of freight and passengers between
the ports of the United states on the At
lantlc Coast and Mexican Gulf and the
ports OF Brazil The petition further asked
that the defendants be restrained from fur
Their acting under their unlawful contracts
and from entering hereafter into any fur
Their combination or conspiracy TO monopo-
lie and restrain the trade and commerce
described.
The first suit Of this kind was that
January. 1911. involving all the lines en-
gagged in transatlantic traffic. In February
1912. the government brought the second
action of this character aimed at the COM
bination OF steamship lines which carries
on the oversee trade between the Atlantic
ports Of the United States and Asia.
The individual defendants in the latest
suit are the officers and agents Of the four
lines iuvolyed-the Prince Line, Limited,
incorporated in England. represented here
by Paul s Gerhard q Co.; the Lamport &
Holt Line. also an English corporation,
with Busk & Daniels as their New York
agents: tho Hamburg American and the
Hamburg South American lines, both Ger
man corporations, being represented here
by William g. Sickel and the firm Of Furch
Edye a Co.
The means By which the four lines &C
complished their unlawful combination dur
ing the last five years the government
charged, were the traffic agreement. en-
tered into in London early in 1908, and the
pooling agreement" which was signed in
July Of the same year.
According TO the government the traflc
agreement provided among other things:
The I.amport & Holt Line. the Prince
Line. Ltd. and the Hamburg lines should
each receive one-third OF the aggregate
profits earned by all three of said lines on
freight carried I'm the trade ana coHhltICe
hereinbeforc described.
The then existing scale OF steeraRe rates
should be maintained by each or said lines
in the absence OF mutual agreement to the
contrary.
A committee should be organized in New
York composed OF the New YORK repre-
sentatives Of said lines. which should co.
operate with said defendant proprletors OF
said lines in carving out the provisions or
said agreement.
Some OF the provisions or the pooling
agreement were given by the government
as follows:
For fixing the total number of sailings
and apportioning them among the sAld
lines.
FOR the withdrawal Of the steamships OF
tho Hamburg lines then engaged IN the
traffic from Brazilian ports 20 the port OF
New Orleans, and that the defendant pro- pro-
prietors Of the LampCT; q MOTT Lane shouio
conduct all such traffic.
For "A system 81 rebates 10 shippers VINO
confined their shipments to the lines OF the
defendants might be- in combination:
For a tariff Of rates for the carriage OF
freight in the trade and commerce aIore-
said ana be adhered 70 by each OF the i,hf h,:
auv OF said defendant proprietors shouId
result I'm a penalty To such onendlnB de-
PENDANT OF from 100 TO 600
The government further charged that the
limos In this combination allowed system
~ rebates 10 induce shippers 20 send their
goods exclusively by those lines. and when
ever a shipper patronized other steamship
lines he was met with a refusal 70 accept
hts cargo when hc found IL more conven-
lon, to lend IL through one OF the DEFEND
ants steamships.
As a result Of thes" practices. the gov
.rnn.nt alleged, these four lines estao-
I,b.d complete monopoly OF the trahc
with Rrazil and have been able to fix aro-
.r,r,. and unreasonable rates for their SER
vices.
Charles r. pickle, was appointed exam
iner yesterday 10 TAX" testimony IN the
Governments suit against the Atlantic con-
ference No date was fixed by the judges
~ the United States Circuit Court OF APP
meals for the beginning OF the hearings.
Paul : Gerhard. head Of the Local.
agency for the Prince Line. defendant IN
the action brought by the government
said that he knew nothing of the petition
aled Yesterday by United States Attorney