The Pensacola journal., 1913-01-09
DIRECT COURSE OF
TRADE AT WILL
Former Agent of One of the
Lines Tells of the Cornbi-
nation That Existed When
He Was in the Business,
of the System of Deferred
Rebates and How Profits
Were Pooled.
RY Assoc1ArEp PRESS.

Washington, Jan. s.-Testimony
shout the shipping combination" that
controlled the commerce Of the seas
with a stronger grasp than any COM
bination which ever existed in the
tIade between states was presented to-
day TO the house merchant marine
committee. ". H Douglass, of the
New York exporting firm Of Arkel and
douglass declared that a combination
~ German and British lines existed,
ccntrolling the ocean, and that steam
ship managers in London are able to
erect the course Of trade at will.
John Seagar, former agent for the
Prince Line at New York, one OF the
sa-calIed trust lines" testified that
his line. now the Hamburg South
american Line and the Iamport &
Iolt Line are In a combination and
hat they had a system Of deferred re-
gttes and pooled the profits. Seagar
esigned in 1905.
- FEARED LOSING REBATES.
William Lowry, South American
gent for the Pan American Mail,
which il is claimed was driven out OF
business by the trust" testified how
ssrge shippers declined to use the new
inc for fear OF losing their rebates
rem the European lines. He suggest.
q ssazlltE excluding from American
7offs Ear0pSan shins ezxlne such re-
a1es -. u tor the ii aifi1akion.
we have built the Panama canal
-or the benefit OF British ship owners
unless this government aids an Amer
lean marine" said he.
Representative Humphrey said he
had been told q Royal Mail Line Of
.ieial had boasted that the company
intended to get a monopoly of lines on
he Atlantic and Pacific to South
america. before the Panama canal was
'nished.
OCEAN ls NOT FREE.
The idea that the ocean is free Is
about as big a fallacy as exists IN
America" testified william II. Doug
lass OF Arkell & Douglass, large ex-
portors to South America and Europe.
The steamship lines, German and
british, were IN combination, having
The ocean under stricte- control than
my combination ever had any trade
between the states, he added, and his
firm was supposed to give its business
10 the Houston Line.
The men who sit In London con-
trolling these lines can throw con-
tracts for goods to any country they
please, simply by lowering or raising
rates" Mr.. Douglass testified. I'VE
are at their mercy unless we go into
the steamship business ourselves with
cut knowing the vicissltudes OF trade,
as our New Orleans friends, to their
sorrow"
Mr.. Douglass believed the German,
English and other foreign companies
lad International agreements by which
they parcelled out ocean ports Of the
world without particular regard to the
nationality of the operating company
He said African and Australian trade
WAS arranged on the same basis as
south American trade. He was inter-
ested in the United States and Aus
. tralian Steamship Company, but did
rot ship his goods by that line. Busi-
uess was divided among various lines
" a "gentleman's agreement" he said
There were no rebates in the Aus
raIian trade, ne said.
Trade 10 India, China. Japan and
1ther eastern nations, said Mr.. Doug
ass, had agreements giving practically
inform rates.
Is there any competition in the In
liza or Asiatic or South African trader"
Is asked
No, not that I know Of" he said,
,dding that some little lines occasion
CContinued on PAGE Three)