sent out by the individual defendants to the agents throughout the United States for the sale of tickets for third-class steerage transportation on such lines. Owing to the above-described illegal and oppressive measures adopted in concert by the defendant steamship lines for the purpose of excluding said North West Transport Line from a participation in said traffic and effectuating the restraint and monopoly of the said traffic pursuant to the aforesaid unlawful combination and conspiracy, said North West Transport Line has at all times since the institution of its said service been prevented from obtaining a fair and reasonable share of said traffic and has been forced to carry such of it as it has secured at a financial loss. Further in pursuance of the aforesaid unlawful combination and conspiracy and to prevent other persons and corporations from engaging in the traffic covered thereby, the defendant steamship lines have agreed that no one of them shall continue in its employ as agent for the sale of tickets over its line, any person who shall act as agent for the sale of third-class or steerage tickets over any independent line in competition with said defendants' lines; this agreement is now in force and the measures provided for thereunder are to-day employed by the individual defendants within the United States and particularly in the southern district of New York for and on behalf of the defendant steamship lines, and particularly as a part of the above described illegal and oppressive attack upon the said North West Transport Line. Excessive and arbitrary rates are charged by defendants for steerage transportation. At all times since the formation of the aforesaid unlawful combination and conspiracy (and since the adoption of the aforesaid unlawful contract), and the institution of the practices herein before referred to as adopted in pursuance thereof, each and all of the defendant steamship lines, in pursuance of said combination, conspiracy, and contract, have arbitrarily fixed their rates for steerage transportation so as to bring about the arbitrary division of traffic herein before referred to and at the same time to maintain rates at that artificial level at which said traffic so monopolized may be made to yield the highest net return to them, and by such action in fixing said, rates they have deprived and are depriving the public of the benefit of the normal division of traffic between persons and corporations engaged in such traffic, according to the needs and convenience of the public, that would naturally have resulted from free competition among persons and corporations engaged in such traffic, and of the benefit of the lower scale of rates for such traffic that would normally have resulted from free competition among such persons and corporations, and of the benefit of superior facilities for such traffic that would normally have been provided as a result of said competition. Penal enforcement of the terms of the unlawful contract. Ever since the formation of the aforesaid unlawful combination and conspiracy (and the adoption of the aforesaid unlawful contract) each and all of the defendant steamship lines has been constrained to conduct its steerage business in all respects in compliance with the terms and provisions of said contract under duress of loss of membership in said conspiracy for failure to observe and carry out the provisions of said contract and of the consequent forfeiture of the money deposit made by it under said contract and of the exposure of such line to the combined attack upon it by all the other defendant steamship lines by the practices hereinbefore described. VI. MONOPOLY RESULTING FROM CONSPIRACY. By the aforesaid unlawful contract and the unlawful practices hereinbefore described, as instituted by the defendant steamship lines to effect the objects of the aforesaid unlawful combination and conspiracy, the defendant steamship lines have obtained and attempted to obtain a virtual monopoly of that part of the traffic of transporting steerage passengers in trade and commerce between the United States and foreign nations that was included within the scope and objects of said conspiracy, and at the date of filing this petition upward of 90 per cent of the total third-class or steerage passenger traffic between Europe and North America is carried in ships belonging to the defendant steamship lines, and upward of 75 per cent of such total steerage passenger traffic is regulated, limited, and restrained by means of the aforesaid unlawful contract of February 5, 1908. VII. PRAYER. In consideration whereof, and inasmuch as petitioner can only have adequate relief in the premises in this honorable court, where matters of this nature are properly cognizable and relievable, your petitioner prays: 1. That the aforesaid unlawful combination and conspiracy and the aforesaid contract entered into and continued by the defendants, as set forth herein, be declared illegal and in violation of the act of Congress passed July 2, 1890, entitled "An act to protect trade and commerce against unlawful restraints and monopolies," and the acts supplemental thereto and amendatory thereof, and that an injunction issue restraining and prohibiting the defendants and each, every, and all of them and their officers, servants, employees, attorneys, and agents from doing any act in pursuance or in furtherance thereof by the means herein described, or by any other means, and be required to desist and withdraw from all connection with the same, and that they and each of them be required and compelled to cancel and abate said unlawful contract. 2. That each, every, and all of said defendant steamship lines be enjoined, restrained, and forbidden either to enter or clear any of their ships or vessels at the port of New York or at any other port of entry within the United States of America or any of its possessions so long as it shall continue to operate pursuant to or cooperate with any of the other defendants under the aforesaid unlawful combination and conspiracy, or under or 'pursuant to any such or similar combination and conspiracy. 3. That the defendants and all and each of them, their officers, servants, employees, attorneys, and agents be enjoined and prohibited from further agreeing, combining, conspiring, and acting together to establish and maintain rules, regulations, and rates for carrying steerage passengers upon the several steamships operated by the defendant steamship lines, or any of them, between ports in the United States and European ports, in restraint of the trade and commerce of the United States with foreign nations, and from entering into or continuing in, or doing anything in aid of any combination, association, contract, or conspiracy to deprive the people traveling between points in the United States and European ports of such facilities and rates for steerage transportation as will be afforded by free and unrestrained competition among said defendant steamship lines, or any of them. 4. That the defendants and all and each of them, their officers, servants, employees, attorneys, and agents, be enjoined and prohibited from further agreeing, combining, conspiring, or acting together to injure or destroy the business of any person or corporation engaged in or who may at any time hereafter be engaged in the business of carrying steerage passengers between points in the United States and European ports, and from further agreeing, combining, conspiring, or acting together to monopolize the said steerage traffic in the trade and commerce between the United States and foreign nations or any part thereof. 5. That the defendants, and each of them, their officers, agents, attorneys, servants, and employees, be enjoined and prohibited from entering into or taking part in or performing any contract, combination, or conspiracy the object, purpose, or effect of which will be a restraint of or a monopolization or attempt to monopolize trade and commerce in the transportation of steerage passengers between the United States and foreign nations, in violation of the provisions of the act of Congress approved July 2, 1890, entitled "An act to protect trade and commerce against unlawful restraint and monopolies," and the acts amendatory thereof or supplemental thereto, either by agreeing or contracting together or with one another expressly or impliedly, directly or indirectly, as to the prices at which the said service of transportation of steerage passengers shall be rendered or as to a division of said traffic, or by agreeing or contracting together or with one another with a view to the imposition of any burden or limitation upon the service of transporting steerage passengers, or by contracting or agreeing together or with one another expressly or impliedly, directly or indirectly, to contribute to any pool or general fund any part of the proceeds of such transportation, or to maintain any such pool or general fund made from such contributions. 6. That upon the filing of this petition an injunction or restraining order be granted restraining the defendants, and each of them, in the manner expressly set forth in paragraphs 1 to 5, inclusive, of this prayer. 7. That your petitioner have such other further and general relief as to this honorable court may appear to be meet and proper. 8. To the end that said defendants may, if they can, show why your petitioner should not have the relief herein prayed for, and may, according to their best and utmost knowledge, remembrance, information, and belief, full, true, direct, and perfect answer make, but not under oath, answer under oath being hereby expressly waived, to each and all matters in this bill contained, and that as fully as if the same were here repeated paragraph by paragraph and they were specially interrogated thereunto severally, may it please your honors to grant to your petitioner a writ of subpoena and respondendum issuing out of and under the seal of this court, to be directed to said defendants, and each of them, commanding them, and each of them, on a certain day, and under a certain penalty to be therein inscribed, to appear before your honors in this court, and then and there full, true, direct, and perfect answer make to all and singular the premises herein set forth, and further to stand, to perform, and abide by such further order or decree as to your honors shall seem meet, and your petitioner will ever pray. Between the following transatlantic steamship lines, namely— 1. The Allan Line Steamship Co. (Ltd.), Glasgow. 2. The Anchor Line (Henderson Bros., (Ltd.), Liverpool. 3. The Cunard Steamship Co. (Ltd.), Liverpool. 4. Hamburg-Amerikanische Packet-fahrt Actien-Gesellschaft, Hamburg, 5. The Nederlandsch Amerikaansche Stoomvaart Maatschappij, Rotterdam. 6. Norddeutscher Lloyd, Bremen. 7. Societé Anonyme de Navigation Belge Americaine (Red Star Line), Antwerp. 8. International Mercantile Marine Co. (except the Societé Anonyme Belge Americaine, Red Star Line, in Antwerp), New Jersey. 9. Canadian Pacific Ry. Co. (Atlantic Steamship Lines), Montreal. the following contract has this day been concluded: ARTICLE 1. The companies before named guarantee to each other the percental participation as defined and provided for in article 3 of this contract of the entire steerage traffic forwarded by the parties to this contract from all European ports to and via the United States of America and Canada and vice versa in vessels owned, leased, chartered, or controlled by them without regard to the flag. Excepted are Italian and oriental passengers forwarded by direct steamers through the Straits of Gibraltar. (Oriental passengers means passengers to or from Greece, Africa, and Asia.) ARTICLE 2. All passengers forwarded in any intermediate class between steerage and cabin, as defined in article 13, to be considered as steerage passengers in the se and meaning of this contract. 66 Commentary to article 2. (a) The word cabin in the sense of this contract is understood to mean the first and second cabin. (b) Intermediate or even cabin passengers are steeragers unless they pay at least the lowest cabin fare, as defined in article 13. (c) Steeragers once embarked by a line can not be counted a second time by the same line or any other line in case of transfers through accidents, etc. ARTICLE 3. The proportions in which the lines participate in the total transportation of steeragers in accordance with article 1 of this contract are fixed as follows (subject to the figures being checked): West bound: 1. The Allan Line Steamship Co. (Ltd.), Glasgow, for its United States services_. 2. The Anchor Line (Henderson Bros., Ltd.), Liverpool__ 3. The Cunard Steamship Co. (Ltd.), Liverpool.. Per cent. 0.62 3.40 13.75 4. Hamburg-Amerikanische Packet-fahrt Actien-Gesellschaft, Ham 19. 61 5. The Nederlandsch Amerikaansche Stoomvaart Maatschappij, Rot 7. Societé Anonyme de Navigation Belge Americaine (Red Star Line), Antwerp_. 8. International Mercantile Marine Co.: burg terdam___ 6. Norddeutscher Lloyd, Bremen__ 6.63 26.53 9.71 1. The Allan Line Steamship Co. (Ltd.), Glasgow, for its United States services, and for its Canadian services (including Portland in the winter)--- 4.95 2. The Anchor Line (Henderson Bros., Ltd.), Liverpool__ 3.93 12.77 The Cunard Steamship Co. (Ltd.), Liverpool, for its Fiume-Trieste 2.35 4. Hamburg-Amerikanische Packet-fahrt Actien-Gesellschaft, Ham burg 12.35 5. The Nederlandsch Amerikaansche Stoomvaart Maatschappij, Rotterdam____. 6. Norddeutscher Lloyd, Bremen__ 6. 10 18.79 7. Societé Anonyme de Navigation Belge Americaine (Red Star Line,) Antwerp_ 8.56 8. International Mercantile Marine Co.: White Star Line_. American Line Dominion Line 9. Canadian Pacific Ry. Co. (Atlantic Steamship Lines). The Cunard Steamship Co.'s Adriatic service, the Allan Line's Canadian services, and the Canadian Pacific Railway Co., Atlantic Steamship lines are not covered by this contract as far as westbound business is concerned, except for the conditions attached to the Cunard Steamship Co.'s Adriatic service as provided for on page 33. ARTICLE 4. If a line ceases to carry steeragers in the sense of article 1, its share of participation as fixed in article 3 will be divided among the other lines in proportion to the percental participation appertaining to each line according to article 3. 15.49 8.72 1.50 4.49 100.00 Commentary to article 4. (a) In case a line ceases to exist or ceases to forward steeragers, the deposit made by such line as stipulated in article 17 will be returned to it after the expiration of six months, but only if and in so far as no claim lays against the deposit under this contract. (b) If a line transfers its business in part or in whole to a successor, or if an amalgamation with another line takes place, the line so transferring business is bound to make it binding upon its successor to enter into this contract and to become a party to it with all the rights and obligations arising out of this contract, and the deposit made by the former line forthwith devolves upon the other line and stands valid on behalf of the latter. ARTICLE 5. (a) If any of the lines are compelled by vis major to discontinue their entire service or even only their steerage service for longer than four weeks after its last sailing (the day of this sailing included) such line ceases to be a party to this contract from the date of its last sailing, but becomes a party to it again immediately upon the resumption of its service or even only of its steerage service. (b) In the interval the participation quota of such line devolves pro rata of the participation as per article 3 upon the other lines. (c) In case lines representing 40 per cent of the shares are compelled contemporaneously to discontinue their steerage services for longer than four weeks from their last sailing, the present contract to be suspended so long as such discontinuance of the service or services lasts, beginning from the last sailing. Commentary to article 5. (a) It was not considered feasible to closely define the conception of "vis major," inasmuch as the opinion generally prevailed that it would be impossible to exhaust all the eventualities which might in this respect arise. (b) But it was unanimously thought that not only the blockade of ports, war, and similar events of a political or revolutionary kind should be comprised in the conception of vis major, but that also obstruction of ports by ice or from other causes, as for instance: If a narrow fairway should be completely closed up by a sunken vessel in or outside of a port, shall be considered as vis major. A cessation of a Canadian service during the winter season, when the St. Lawrence is closed, shall not be considered as coming under this clause. (c) A line ceasing to be a party means, that the accounts are closed with it up to the day when the line had its last sailing, and a line becomes a party again, means that the accounts are re-opened with it from the day of its rejoining the contract, that is, from the day of its first sailing. ARTICLE 6. (a) Any line or lines whose steerage transportation in a year exceeds in point of number the proportions fixed by articles 3 and 4 have to pay a compensation price of £4 for each passenger (soul) carried in excess of the established proportion. (b) Such money to be paid to the line or lines who have not reached their partipation quota and such payments to be made in proportion to the number of steeragers which each line is short. Commentary to article 6. (a) The stipulation of a compensation payment for each steerager carried beyond the proportion allotted by this contract forms one of the main features of the entire contract. The payment of such compensation is certainly not the intent and purpose of the contract, but it is the requisite means to deter the lines from following the tendency to exceed their proportion. (b) The possibility ought not to be excluded to effect alterations with regard to the figure of £4 in the event of it becoming evident, that from extraordinary causes, the stipulated compensation proves to be too low or too high for the purposes of this contract. (c) If for instance the steerage rates by any line should fall below £4, the compensation price of £4 was considered excessive for the purpose of this con tract. |