The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-18
FIGHTING STEAMER"
LETTER READ IN SUIT
Federal Expediting Court Hears
Final Arguments in
Pool Case.
SHERMAN LAW ATTACKED
Atlantic Lines Counsel Says
Antitrust Act Doesn't
Apply on Ocean.

Final arguments we're heard in the
United States District Court yesterday In
the Government suit to dissolve the trans
steamship lines united under the official
title Of the Atlantic Conference. The
arguments were made before Judges La
combe. Cox. Ward and Rogers. who sat
a. an expediting court, designed 20 elm
mate one step in the appeal that surely
will be made in the case. An appeal from
the decision of the expediting court would
20 direct to the United States Suprer-e
Court instead Of to the Circuit Court Of
Appeals.
The defendants named In the Govern
ment's suit. which was filed on March 4.
1911, arc the Hamburg. American Line.
the Holland America Line. the North
German Lloyd. the Allan. Anchor. white
Star. Red star. Cunard and Russian East
Asiatic lines. tho International Mercantile
Marine Company. the International Navi-
CATION Company and the Canadian Pacific
Railway Company.
The Government charges that the COM
bination was formed In London on Febru-
AIRY 6. 1905. under the name Of the Allan
tic Conference. for the purpose Of dividing
equally among the affiliated steamship
lines the passenger traific between Europe
and North America. Seventy-five per
cent. OF this traffic. involving $4,000. 900
In revenue. IL controlled by the confer
ence. or transatlantic shipping pool. ao-
cording to the Government.
"Fighting Steamer" Charged.
Not all Of the defendants named in the
Governments suit were among the orig
no M ~ rin "a IN, an
the Government says. were forced to be-
come members through tho rate cutting
war which the conference 10 said to have
carried on by means OF its lighting
steamers" Two lines-the Russian Vol
unteer Fleet plying between Libau. Rus
STA. and this port. and the Uranium Steam
ship Company-were driven out OF busi-
ness through these tactics. according to
the complaint. The Russian Line. II Is
alleged, held out until the fighting steam
ers'' cut too deeply into the steerage rates
and then fell into line by Joining the con-
ference.
The lighting steamers" IL Is alleged in
the complaint were vessels belonging to
conference lines which were selected TO
carry passengers at rates which the COM
peting lines could not meet. The sailing
OF these ships from the ports Of the COM
peting lines was widely advertised. Ac-
cording to the Government the money
lost to any conference line through this
cutting of prices was made up by the
assessment Of the other members OF the
conferences.
Fines were also imposed. it Is alleged.
on members of the conference who
carried more than their allotment OF the
steerage traffic. Afhr the competition
from any one port was eliminated. the
Government asserts. the prices would be
raised higher than ever.
Reads Letter to Court.
As an evidence of the competition
sitting intent OF the conference United
States Attorney Marshall read to the
court the following extract from a letter
written by the North German Lloyd to
Secretary Peters of the conference:
AS experience has shown that such
reductions influence strongly the Italian
eastbound business. We hope not only 90
ruin the business Tor the Italian Lines but
NJ the same time to increase the number
of returning Italians to such an extent
that little room will be left TO direct lines
for continental steerages."
Ex-senator John {. Spooner. chief
counsel for the defence. argued that ocean
traffic between countries was not subject
TO the Sherman law. Lucius H. Beers
representing the Cunard Line. thought
that the rule OF reason written into the
sherHiah law oy tne supreme SouTt Win
reference to reasonable" and ''unreason-
able" monopolles might apply in this case
In any event. Arguments were also ad-
vanced by y. Il. Beecher and G. Z. Bur-
lingham. representing the International
Mercantil. Marine Company.
The expeditlng court probably will give
decision some time in July. The Gov
eminent asks that the ships belonging
TO conference lines he prohibited from
entering the ports OF the United States
until the alleged combination IL broken up