New-York tribune., 1920-08-31
u. S. Accuses
ia Firms of
Trade Plot
tcentinusd frsm page one,

broker or forwardcr to become a mem
ber of the association unless he would
swear to and be subject to the con-
stitution and bylaws Of the organiza-
ton
Agreeing to control and dominate
through the organization and rules Of
the New York Produce Exchange "the
members of said Steamship Freight
Brokers' Association by requiring all
applicants ~for membership therein to
become members of the New York Pro-
duce Exchange"
Agreeing ITO coerce or compel, and
coercing or compelling, members of
said Steamship Freight Brokers' AS
scciation to observe, comply with and
live up to the said agreements, rules
and regulations of the Steamship
Freight Brokers' Association and of
the New York Produce Exchange"
TO restrain, prevent and eliminate
all competition in said trade and com
merce."
"By divers other means and methods
not specifically determined upon by
said defendants, but to be decided upon
by them as occasion might arise, all
intended and calculated in furtherance
OF, and to effect the object of said
conspiracy to restrain the aforesaid
interstate and foreign trade and COM
merce."
Effort at Monopoly Charged
The second count charges the steam
ship companies and their individual
representatives with "unlawfully, know
ingly and willfully" engaging in "con-
spracy to monopolize the aforesaid
trade and commerce." The means by
which the objects alleged were attained
are similar to those recounted in the
foregoing.
The indictment and suit, coming as
they o.d at the same time, we're not
surprising to officials of the defendant
lines. Their comment was given gen
eral expression in the statement COM
piled last night at the request of The
Tribune by Mr. birmingham, counsel for
some of the transatlantic lines, and one
OF the attorneys representing the
Transatlantic Associated Freight Con-
ferences. He said:
This is suit in equity brought by
the United States against Walter
Moore and other members of the
Steamship Freight Brokers' Associa-
tion, and also against a large number
of steamship companies and some of
cree declaring that the Steamship
Freight Brokers' Association and the
Transatlantic Associated Freight Con-
ferences are illegal and in violation of
the Sherman act, and seeks an injunc-
tlon against any discrimination what
ever against freigh. brokers not mem
bers of the Steamship Freight Brokers'
Association. The petition charges that
this association excludes from mem
bershlp any person not a member of
the Produce Exchange or associated in
business with such Produce Exchange
member, and charges the steamship
companies with refusing to pay brok-
erage fee to any freight broker not a
member of the association.
"The grand jury has also returned
an indictment against some of the
same defendants for alleged violation of
the Sherman act.
All Documents Produced
"More than year ago the United
States Attorney for this district re-
quested the secretary of the Trans
atlantic Conferences to produce the
minutes of the conferences and all
agreements, correspondence and docu-
ments relating to freight brokerage.
This request was complied WITH al
though pursuant tNthe shipping act Of
/ 1915 all minutes and agreements had al
ready been transmitted to the Shipping
Board at Washington in regular course.
During the war most shipments
moving from United States ports were
for government account, and there was
no need for the service of freight brok-
, ers, but since the war, with the in
crease in shipments for private account,
ship brokers have resumed their func-
tions. There has been for several years
conflict between the Steamship
Freight Brokers' Association of the
Port of New York and another associa-
tion of steamship freight brokers. The
principal objection of outside brokers
to this association seems to have been
that it's constitution limits the mem
bership to persons who were either
members of the Produce Exchange
themselves, or were connected in bust
ness with a member of the Produce
Exchange.
"It is important. not only to the
steamship lines, but to shippers and
merchants, that the business of freight
brokerage should be in the hands of
responsible persons, and the require
ment of membership in or association
with the Produce Exchange seems a
reasonable provision"
j. H. Thomas, vice-president Of the
International Mercantile Marine, told
Tribune reporter last night that liti-
cation similar to that begun yesterday
had been the subject of agitation for
two years or more by disgruntled
freight brokers who failed to qualify
for membership in the Steamship
Freight Brokers' Association.
1t was his impression, he said, that
any forwarder or broker who was "all
right" was permitted to join the asso-
citation.
Aimed at Orderly Business
"My recollection" said Mr.. Thomas
''is that the association was formed
simply with the idea of conducting
business in an orderly manner.
although l have not gone into the
matter, having only been informed this
afternoon that the indictment and suit
had been entered, the litigation proba-
bly, is due to the agitation of these dis
satisfied brokers during the last two
years or more"
None of the steamship companies is
a member of tt forwar!cr,' ana brok-
ers' organization, Mr. Thomas said.
Harry Fowler, of Caldwell & Co..
member of the Steamship Freight
Brokers' Association, said he saw no
possible basis for the Indictment, and
did not know who might be primarily
rcarc nsible foc the charges of con-
sp,racy. He added TIA. nc did not