The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1913-01-17
SHIPPING TRUST
CONTROLS OCEAN
Territory Divided and Profits
Are Put In Pool.
German and British Interests Dom
mate Fighting Boats" Sent
to Kill Competitors.

/
| about ga shipping combination that
controlled the commerce of the seas
with stronger grasp than any com.
bination which ever existed in the
trade between the states" was pre-.
sented to the house merchant marine
committee.
Shippers told of being at the mercy
of the combination. The former
agent of one so-called conference" OF
combination line related the methods
of keeping independent lines out OF
the trade, of pooling profits and Of
dividing territory.
w. H. Douglas, of the New York
exporting firm of Arkell & Douglass,
declared that combination of Ger
man and British lines existed control
ling the ocean, and that the steamship
managers in London were able to di-
rect the course of trade at their will.
Allerton D. Hitch, secretary and treas
urer of Hagenmeyer Trading company,
of New York, trading in Brazil, de-
clared that the only Independent line
to South America was the Lloyd Bra
zileirio line, and that while his firm
used it to an extent, it's steamers were
slow and that its officers, government
al appointees, were not trained.
John C. Seager, former representa-
tive of conference line, testified that
for several years he was agent at New
York for the Prince line. He said his
lines, the present Hamburg South
Amerika and the Lamport & Holt
lines; were in combination.
"When did the combination start?''
inquired Representative Alexander,
chairman of the committee.
"About 1895 or 1885, was the
reply.
The witness explained that the COM
bination had system of deferred re-
bates and pooled the freight and COM
missions.
"You mean it pooled the profits?''
inquired Representative Humphreys.
eyes, SIR" Mr.. Seager replied.
"We frequently got instruction to put
on fighting boat Mr.. Seager fur
Their testified.
"That is, to put in the berth boat
with rates so low as to drive a compe-
titor out of business. The loss was di-
vided pro rata among the lines"
Mr.. Seager also said there was a
"gentleman's agreement" by which
the Booth line took the trade in terri
tory between Pernambuco and the Am
AEON, and the conference lines the ter
ritory south of Pernambuco.
"The policy was, you must not play
in my yard and l won't in yours, but
if you do I will bring down my family
and break up your yard, - he said.
William Lowery, South American
agent for the Pan-American Mail,
which it is said was driven out of bus
mess by the Crust" testified how
large shippers declined to use the new
line for fear of losing their rebates
from the European lines. He sug-
gested statute excluding from Amer
lean ports European ships giving such
rebates.
eve have built the Panama canal
for the benefit of British shipowners
unless this government aids an Amer
lean MARINE" said he.
"The idea that the ocean is free is
about as big a fallacy as exists in
America, testified William H. Doug
las, a lagre New York exporter to
South America and Europe.
"The steamship lines, German and
British, are in combination, having
the ocean under stricter control than
any combination ever had any trade
between the states. The men who sit
in London controlling these lines car
throw contracts for goods to any coun-
try they please simply by raising OF
| lowering rates. -