Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-01-09
Has Shipping Trust Over
Commerce of Seas,
British and German MOn0poIIes
Control Ocean Says Witness.
testimony Before House invesiIgat.
ing commi'tee-.0ther Witnesses,

| SiipplhS combina ton that
'oi.oiiied the commerce of the seas
VIII stronger grasp than any combi-
,io'toi' "tilch ever existed in the trada
nes@eeh me states, was presented to-
uas, 10 the House merchant marine
marine committee. Shippers told of
peiilg at the mercy OF the combination.
| me FORMER agent of one so-called
conference or combination lines re-
lated The methods Of keeping ihdepend-
cit lliies out OF the trade. pooling prof
It's and of dividing territory.
! " Il. Douglass, of the New York
| exporting firm of Arkell e. Deuglass.
declared that combination Of Ger
man and British lines existed. con-
trolling the ocean, and that the steam
sllp managers in London were able to
| direct the course of trade at their will.
| Allerton d. Hitch, secretary and
| treasurer of Hagenmeyer Trading Co.
Of New York, trading with Brazil. de-
| clared that the only Independent line to
i South America was the Lloyd Brazilei-
70 Line, end that THIS inc was mad
| equate and improperly manned.
! john G. Seager was the only repre-
/ sentative Of a conference line to tes-
tify. For several years h. was agent for
the Prince Line at New York He
! stated that his line, the present Ham,
! burg South America Line, and the
Lampsrt & Holt Line have been in n
combination since 1895. The witness
explained that the combination had a
system of deferred rebates, and pooled
the freight and commission profits
| We frequently got instructions to
put on Fighting boat. = Lir. Seager
81, ssrVsfe
berth boat with rates so low as to
drive competitor out of business. The
leFs WAS divided pro rata among the
lines
| Mr.. Seager also stated that a gem
tleman's agreement existed between
the lines.
Mr.. sseager said his connection with
the Prince Line terminated about 1906
when the district attorney in New
Ycr9 bsgan investigating the methods
of the steamship lines. He further de-
clared that many regular attorneys adj
vised that the methods were in viola
ton of the law. and even Senator Root
ard Secretary of state Knox, both then
in private practice, gave similar adj
vice.
William Lowrey. South American
agent for the American Mail
Line, which it is said was driven out
of business by the trust testified that
large shippers declined to use the new
line for fear of losing their deferred
rebates from the European lines. He
suggested a statute excluding from
American exports European ships Civ
ing such rebates, as a remedy for the
situation.
No hay hui hp Don ma
the benefit of British ship owners I'M
less this government aids an American
! marine" said he.
Representative Humphrey said he
had been told that Royal Mail Line
official boosted that the company in
| tended to get a monopoly of lines on
the Atlantic and Pacific to South
| America before the Panama canal was
| finished.
."rhe idea that the ocean is free is
about as big a fallacy as exists in
America" testified William H. Doug
lass. of Arkell and Douglass. of New
York, exporters to South America and
Europe The steamship lines, German
and British were in combination, hav-
ing the ocean under stricter control
than any combination ever did any
with the statement that his firm was
supposed to give its business to the
Houston Line.
what would happen if you gave
your business to other lines?" Repre-
sentative Alexander asked.
I'VE may ship by other conference
lines, but if We did very much the
Houston would probably lose interest
in our business
He declared the rates extremely high
and extremely prejudicial
1.-The men, who sit in London controll-
ing these lines can throw contracts for
goods to any country they please, SIM
ply by lowering or raising rates. Mr..
Douglass testified. I'VE are at their mer-
cy unless we go into the steamship BUSH
ness ourselves without knowing the Vi
cissitudes of trade as our New Orleans
friends did 10 their sorrow
Mr. Douglass believed the German.
English. and other foreign countries had
International agreements by which they
parcelled out ocean ports of the world
without particular regaru TO the nation
ality of the operating company.
He said African and Australian trade
was arranged on the same basis as
in the United States and Australasian
Steamship Co. but did not ship his goods
by that line. Business was divided among
various lines by sgentleman's agree
ment." he said There were no rebates
in the Australian trade.
Trade to India. China. Japan and other
Eastern nations, said Mr.. Douglass. had
agreements giving practically uniforms
Al linz
made special rates for big shipments OF
certain kinds.
Don't they make special rates to the
Harvester combine and the Steel
trust?' asked Representative Hnmph-
rey.
Eyes. think so. aud to the STANDARD