New-York tribune., 1920-10-08
Hamburg Line
Long Foe of
U. S. Shipping
Sought to Crush American
Service to Copenhagen;
Interstate Commerce Com.
mission Is Appealed To
Terms of Trade Dictated
Producers Here Forced to
Submit to German Co. to
Get Their Goods Abroad

How the Hamburg American Line
worked against American shipping be-
fore the war is shown by the records
Of the Interstate Commerce Commits
SION. Not only did the line seek to
dominate the trade of Germany with
the United States, but that of the
Scandinavian countries as we'll. At
lsmpts Of an American company to
establish a line 70 Copenhagen were
net with warnings followed by threats,
and these proving of no avail other
methods were resorted to-
Writing of the Hamburg company
in 1908 III his book, The Ocean Car
Ters Professor j. Russell Smith. OF
,ae University of Pennsylvania. said:
The Hamburg American company
Acne may really be considered as q
vast and strong conference, the only
difference being shat 1t is all owned
5y one fra rather tAan managed bv
conference Of owners, and its solditv
IS therefore absolute. 1t dominates
the German and Scandinavian trade
With America. having its own lines TO
al ports 81 Importance from Mon
at Hamburg to Baltic and Scandi-
nayian por.s. Any small lines that
from tine to time go to Hamburg do
so by Is consent.
Strangulation Fund Used
"The great force of its competition
arises from The fact that, having fifty
seven services in nearly all parts of
the world it is in the identical posi-
ton Of an american trust which kills
a small riva by doing business at q
oss in his small territory while it is
making profit in the otter 90 or 90
per cent Of its own territory. and
with this profit can pay dividends and
also maintain q stranc ulation fund
"Ife German companies, in guard
irg their territory from competition,
have not only driven and kept rivals
away from their own ports, but in the
las. forty years the establishment of
services to Scandinavia has been re-
garded dc an undue and u 0cTmlssihle
encroachment, because It might carry
directly the Goods now handled by
transshpmont through Hamburg and
Bremen, especially Hamburg"
1t was in the face OF these condi-
tons that the firm o. Peter Wright &
Sons, Of Philadelphia, one OF the old
est AID most reliable in American
shipping. undertook to inaugurate d
line from phladel lphia to Copenhagen.
What followed was brought out in the
complaint in The case filed with the
Interstate Commerce Commission.
Hamburg American. Company repre-
sen,2tiyos, as soon as the service was
begun. advised tine American firm to
!, PIP. s--
The service was maintained. however,
and severe and damaging competition
followed by the German lines and by
new ores created especially for the
purpose.
Terms Dictated to Shippers
In the complaint to the Interstate
Commission It was stated that the
Hamburg company had established
such system Of robates that through
its financial penalties shippers were
not permitted to ship goods, whether
they We're interested directly or indi-
Tecty, either as owners of the goods
or Is agents, except by lines Of the
Hamburg American Packet Company or
by such lines as it might direct This
contract, when made With q German
IorwarGlAg q agent, covered what mer-
cnanaise &c might handle for any or
all OF his foreign or domestic princi-
pals, no m@tter b. what route CT
J routes he may have been Instructed by
tnc bona ilde owners Of sucl merchan-
dlse to forward their Goods to ulti-
mate ordinations in the United States.
In other words the complaint con-
unued, the iiambusg-American Pack
E, Company not only secured the right
10 IL.
/ hamburg to the nited States North
Atlantic ports, but. in like manner,
qeIenptorily demanded as we'll the
Fgnt to name The steamship lines by
when the shipper should forward
relgnt IRON bremeN or Rotterdam to
inc SAID United States North Atlantic
ports thereby preventing the shipper
rom sending his merchandise by any
o'Aer lines than those specifically des-
gnated by the Hamb g American
Packe. Companv
, Foreign Centre' 'E~'rtai,cl
The Hamburg f..aerican Packet
company, aftes years Of aggressive
'sctcs, stands the absolute dictator
o. the German-Amcrican trade. No
Sseamship company in the United
s'a'es, OF elsewhere, dares to question
mS ioity supremacy; such temerity
would be followed Immediately by at
~Mpted determination.
Ihus company foreign in its con
.foi dictates the rates. the line, the
manner, the method, the routes and
s'egy other condition Of trade and
Naltic, to which the United States
Producer, manufacturer or shipper
must humbly submit if he aspires tc
introduce his goods to the foreign con
sumer VIA the three most northern i'm
PVIisnt Continental ports"
None Of the statements were in any
way ,disproved by the rebuttal of tn,
ppaMourg company attorneys" say.
rfoiessor Smith. "The Interstat,
SOmmerce Commission did moth
.IS to question or determine theil
wfrectness, because the complaint VIZ:
oSm'ssed in March, 1908, on the
grounds OF lack of jurisdiction to con
.r0l the ocean lines in any ALLEGED
restraint of trade The Hamburg
spmpany Is therefore allowed to g
VI undisturbed in its steady accretior
services and virtual control o
u POI ITYCtT