The Birmingham age-herald., 1913-01-12
MORGAN MAY TESTIFY
OF A SHIPPING TRUST
House Committee Will Investigate
International Mercantile Marine,
Which Financier Controls

Washington, January 11.-An inves
ugation of the International Mercan-
tile Marine, the Sl20.000,000 American
corporation controlling numerous for
eign and American ship companies with
J. Pierpont Morgan as chief witness,
is contemplated by the House commit
tee on merchant marine in connection
with it's hearing of the so-called ship
ping trust. Mr. Morgan is said to have
organized this great company and to
control it's stock.
Chairman Alexander of the commit
tee announced today that Mr.. Morgan
probably will be subpoenaed immedi-
ately upon his return from abroad. z.
A. S. Franklin, vice president of the
White Star line, one of the important
companies connected with the Inter-
national Mercantile Marine, already has
been subpoenaed and probably will be
examined in the near future.
The Jnternatio Mercantile Marine
owns the entire capital stock of the
Oceanic Steam Navigation company
(the White Star lne), the Interna-
tional Navigation company (the Amer
ican and the Red Star lne). the Mis-
sissippi and Dominion Steamship COM
pany and the Brand North Atlantic
Steam Navigation company, and owns
the controlling interest in Frederick
Leyland & Co., with the shipping bus
mess OF lSUldN, IHllic u W. anu iNith-
ard Mills & co.
The combined salings of the vari-
Gus companies covers 45 services from
New York Philadelphia, Baltimore,
Boston, New Orleans, Galveston. Que
bee, Montreal and Portland to Liver
pool. Plymouth, southampton, London,
Havre, Cherbourg, Bremen and Ant
werp The corporation also operates
various fines in the distinctly foreign
service
Tells of Rate Agreement
How agreements as to rates and
service are maintained between steam
ship lines between New York and tho
far east and India was described to
the committee by PAUL Gottheil whose
firm represents a number of the largest
North Atlantic companies.
Mr. Gottheil was questioned at length
concerning alleged agreements among
all of the big North Atlantic lines in
Guiding the Hamburg American, North
German Lloyd, Holland American and
Red Star to divide the ports of Eu-
rope.
Witness insisted that while 1t was
entirely possible there was an under
standing by which one line would not
send its vessels to the port of an
other yet there was strong competi-
tion between the companies because
cargoes were destined for points be-
yond the ports at which they We're dis
charged.
The chairman asked about rates be-
tween Atlantic ports and the far east
and between Japan, China and the Philip
pine archipelago. He asked whether there
was a polling arrangement by lines be-
tween Atlantic ports and the far east
Witness Gottheil declared he had no df1-
mite knowledge but believed such agree
ments were still in existence.
Witness said a great many ships under
foreign flags probably were owned by
Americans. AS to traffic between the
United States and the Baltic ports Got
theil said the Scandinayian-America
Hamburg American, North German-Lioyd
ai,1 Wilson lines were in agreement TO
make the same rates and divide traffic-
qhe Norway Mexico Gulf line, witness
declared was in active competition with
the Scandinavian American line in the
trade to Copenhagen and Christiana.