ON THE PACIFIC.

On the Pacific Ocean all the foreign vessels are formed into combines and conferences, the same as they are on the Atlantic. All agree on freight rates. There is absolutely no competition. All of them give rebates and other advantages to their patrons. The Japanese, English, and German lines are the principal lines in the conference on this ocean. The Japanese lines seem to largely control this conference on the Pacific, as the German lines control the conferences on the Atlantic.

However, evidence of the details of the workings of those lines is not very complete. The investigation to which I have referred does not cover these lines so thoroughly. These conferences on the Pacific control shipping of all ports on that ocean, including the Philippines.

The American ships on the Pacific Ocean in the transoceanic trade are probably parties to these Pacific conferences.

Not only do these conferences control rates on the Pacific Ocean and give rebates, but, by a contract between the transcontinental railways of this country and these conferences, controlled by Japanese lines, these Japanese lines fix the freight rates not only on the Pacific Ocean, but in the United States on the railways. Japanese foreign steamship lines to-day absolutely dictate the freight rates from any portion of the United States to and from Pacific ports anywhere on that ocean. These contracts have been made with the great transcontinental railway lines and extend over a period of years. The Great Northern, the Northern Pacific, the Milwaukee, and other lines running to Seattle have traffic agreements of this character with the Japanese lines that come to that port. The railroad lines running into San Francisco have siimlar arrangements with Japanese lines running to that port.

The

On the Pacific Ocean there is also a combination or conference of the sailing vessels of England, France, and Germany, representing practically all the sail tonnage on the Pacific Ocean. This conference is known as the Sailing-Ship Owners' International Union. Its agreements are printed in this report of the royal commission. I shall print it again in the Record. (See Exhibit C.) purpose of this combination, as declared in its rules, is to raise freight rates from the Pacific coast of America to Europe. No attempt is made to control the rate from Europe to America. This combination has succeeded in its purpose, for, since it was formed, about five years ago, it has increased freight rates from the Pacific ports of this country to Europe more than 500 per cent. Mr. COOPER of Wisconsin. Will the gentleman tell us who increased the freight rates 500 per cent, as he just stated?

Mr. HUMPHREY of Washington. These lines that run between the Pacific coast and the ports of Europe that comprise this conference. To give you an illustration:

Last summer ships belonging to this combine came from Europe to Seattle carrying a cargo for $1.25 per ton. These same ships refused to take a return cargo over the same course for less than $6.90 per ton. Failing to get a cargo at this price, they sailed away in ballast. They were compelled to do this, for that was the minimum price fixed by the conferences; and if they had carried a cargo for any less, they would have been subject to a fine of 5 shillings per ton upon the dead-weight capacity of the vessel. When this combination was formed they were carrying wheat from Seattle to Liverpool for $1.25 per ton. They immediately raised it to $5.62 per ton, and recently to $6.90.

I trust that Members of this House will not forget and that the American people will not forget that these foreign ship combinations on both the Atlantic and Pacific, everywhere, constantly discriminate against this country in favor of the country whose flag they fly.

The answer to this statement has always been to dispute it. The truth can not, however, be longer denied. Here is the published evidence in the report of this royal commission, complete and undisputed, given by the parties who have practiced these discriminations.

It is natural that these discriminations should be practiced. We have no one to blame but ourselves that these things are done, That we patiently permit these discriminations against our country is a national disgrace, a reflection on the patriotism and the intelligence of Congress.

AMERICAN LINES.

As already stated, the American lines on the Pacific in all probability have joined with the foreign lines and have entered the different conferences. Al

though the evidence given before the royal commission, so far as I have been able to ascertain, is not conclusive that the American lines on the Atlantic Ocean are parties to any of these conferences, yet from this and other information that I have received from other sources I am strongly inclined to believe that the American lines running between this country and Europe, notwithstanding that they are receiving mail subsidies, are parties to these conferences. It may be that these American lines will plead self-defense in becoming parties to these combines, and it may be that this plea is true-and I believe, personally, that it is true-but nevertheless I do not believe that this should be permitted by this Government. [Applause.] If it is persisted in by the American lines running under the provisions of the ocean mail act of 1891, I think that the contract with them should be canceled. This Government ought never, under any circumstances, be a party, however indirect, to any such methods. [Applause.] The mighty power of the Government should be exerted to any extent necessary to end this infamous system that is destroying our commerce and has driven our flag from the sea. [Applause.]

Mr. MORSE. Mr. Chairman, I am greatly interested in this matter, and I am not asking questions in the spirit of criticism. I am wondering if the gentleman thinks that a ship subsidy would tend to break up this combination, if given to American lines of ships.

Mr. HUMPHREY of Washington. I have answered that, I think. That it would have a great tendency to do it there can be no question, because, if we had only one line running from here to South America or across to the Orient, the Government could control it, and this would compel all of the lines to lower freights, or the American ships would carry so much of the business that they would not need any government aid. If the conference lines attempted to drive it out by reducing rates this would save our country far more than any subsidy we might pay.

Mr. GARRETT. But the very meat of the suggestion of the gentleman from Wisconsin was that by virtue of the power of this combination and the tremendous wealth behind it, they could outbid any subsidy.

Mr. HUMPHREY of Washington. I do not think the gentleman is right in that, but I do not hesitate to say that under this system of conference, this mighty combination, that no power is strong enough except that of the Government to break it. But the Government can do it, and it would be a most profitable thing for it to do it. This Government can not afford to be at the mercy of these foreign ship trusts in time of peace and much less in time of war. Private lines can not compete with this giant monopoly of the sea, but the Government can, and it must. No American with a drop of red blood in his veins will contend that we stand helpless before this combination of foreign ships. [Applause.] It is our duty to find the remedy and apply it. [Applause.]

ONE THING THAT ALL LINES DO.

All these conferences of foreign ships on both the Atlantic and Pacific give special rates and special privileges to certain great American trusts. This appears again and again in the evidence contained in this report on "shipping rings."

I might say, by way of parenthesis, that I was talking only a few days ago to a representative of another steel company in this country, and he was complaining that they just had an opportunity to bid for bridge work in Japan, but it was absolutely impossible, because they could not meet the steel-trust competition. When I called his attention to the preference given it in the way of rates by foreign steamship lines, he said he understood why, for the first time, that they could not meet them in foreign countries. The great trusts thus specifically mentioned are the Standard Oil Co., the Steel Trust, and the Harvester Combine and this latter combine appears more frequently in the evidence than any other. These foreign steamship combinations by this favoritism have made it impossible for any American rival to compete with these industrial giants in any foreign market. In this and in a thousand other ways these foreign trusts-these foreign ships-have nullified and violated the anti-trust laws of this country. Shall we permit these foreign trusts, without protest, to continue to violate our laws?

THE GREATEST TRUST IN THE WORLD.

The Hamburg-American Packet Co. is the greatest power in the most gigantic trust, combine, and monopoly that exists in the world. All the different

combines and companies on the Atlantic Ocean, while they divide up the field and parcel out the territory, are also under one gigantic working scheme and have a common understanding. The head of this greatest of all trusts is the Hamburg-American Line. It is also probable that this line exerts, together with Japan, a controlling interest in all the Pacific conferences. It has often been claimed that the Hamburg-American is not a subsidized line a statement true in the letter and false in the fact. It is beyond question, all things considered, the most heavily subsidized line in the world, with the possible exception of some of the Japanese lines. The Hamburg-American Line has a onethird reduction of freight received from 20,000 miles of government-owned railroad in Germany. This line has the influence and the wealth of the German Government back of it. It stands for the German Empire. The German Emperor is reputed to be a heavy stockholder in this company. The HamburgAmerican is the favored child of the German Empire. Why should this great monopoly, that absolutely dictates the freight rates on the entire Atlantic Ocean, have a direct subsidy paid to it by the German Government? One of its subsidiary companies, however, the North German Lloyd, does receive a direct subsidy from the German Government of $1,385,000 a year for its East Indian and Australian service alone.

If this giant monopoly is losing money, all it has to do is increase freight rates on the commerce of this country. This it has done and is doing. The earnings of this mightiest of all monopolies is probably not less than 25 per cent annually. This vast tribute to make this vast profit comes mostly from the American people. The ingenuity of man can not invent a reason why an absolute monopoly that absolutely controls more than half the commerce of the world should be paid a direct subsidy.

The head of this world-wide trust is Herr Ballin, by common consent the most influential man in Germany, excepting only the Emperor himself. Herr Ballin to-day sits in Germany and absolutely fixes the price that the American merchant, the American manufacturer, and the American farmer must pay on every pound of freight he sends to Europe or to South America. He absolutely dictates the amount of money that any American citizen must pay to visit Europe or to visit South America.

Herr Ballin and Herr Boas, the general manager of this company in this country, have frequently, through the American newspapers, denounced the efforts made by the American Congress to do something to assist in building up our merchant marine. Herr Ballin came to this country a few years ago and made a speech to American business men in New York City, insisting that America should permit Germany to carry her commerce on the seas. He and his New York representative, Mr. Boas, have attacked and denounced any legislation looking to the upbuilding of our merchant marine. They have opposed the ocean mail act of the majority and the discriminatory duty plan of the minority.

The hired representative of Herr Ballin and his interests is here in Washington to-day on the staff of the Associated Press, the greatest news-gathering agent in the world. This gentleman's name is Mr. J. J. Wilbur, and when you remember how close the German merchant marine is to the German navy it is at least suggestive that this representative of this giant foreign steamship trust should also be the representative of the Associated Press assigned to our State, War, and Navy Departments.

When he was on the witness stand the other day, he refused to testify as to the amount of money that he was being paid for this service. The next day after that Mr. Boas, of New York, was upon the witness stand, and he testified that Mr. Wilbur's compensation was $3,000 a year. What does he do? What are the services that he renders this company?

This is the Herr Ballin whose company voluntarily withdrew two of its fastest and best ships and sold them to Spain to sink, burn, and destroy Ameri

can commerce.

This is the man and this is the company that to-day absolutely dictate how and on what terms this great Nation shall transport $3,500,000,000 worth of commerce annually. This is the man whose company, when sued by American citizens for rebating and pooling and combining to destroy competition, answered that his was a foreign corporation, and he would do as he desired.

All this is done so far without complaint and without protest on our part, and this while the whole country is filled with the sound and fury of the verbal battle to exterminate comparatively small trusts and combines at home.

No wonder that we are to-day, in our trade relations with other nations, considered as the blind and strutting fool of the world. [Applause.]

UNDISPUTED PROPOSITIONS.

The following propositions I challenge any man to deny or refute: First. That 90 per cent of our commerce is carried by a giant monopoly composed of foreign ships, among which there is not the slightest competition.

Second. That these lines constitute a complete monopoly of the sea, and that these lines are, each and all, pledged to stand together to destroy any competitive line that may attempt to enter the field.

Third. That there is not a regular line of foreign vessels carrying our commerce but what is in a trust, conference, or pool that agrees on freight rates and gives rebates or other preferences.

Fourth. That there is not a single foreign vessel engaged in carrying our commerce but what discriminates against products of this country whenever and wherever these products compete with the products of the country whose flag the vessel flies.

Fifth. That the service between this country and South American ports is grossly inadequate and grossly discriminatory against this country in favor of the countries of Europe.

Sixth. That there is not a line of foreign vessels engaged in carrying our commerce on either ocean but what gives special rates and other preferences to the Standard Oil Co., the Steel Trust, and the Harvester Combine.

Seventh. That these combinations dictate freight rates to and from interior points, and that they dictate the ports through which interior freight shall pass. Eighth. That many of the lines in these combinations, trusts, and conferences have large property holdings in this country, consisting of terminals and other property, and are represented in this country by local agents.

Ninth. That many of the lines in these combines are receiving subsidies and other assistance from their governments and are performing government functions and form part of the naval auxiliaries of the various nations.

Tenth. That there is a combination between transcontinental railways of this country and Japanese steamship lines that fix the rate on oriental freight, both on land and on sea.

These are the facts, to-day admitted by all and known by all who have given the matter attention. So well are these facts known by the other nations of the world that they do not even excite comment.

The fact that these things have never been fully published in the press of this country is one of the highest tributes to the power and influence of these great combinations. What method they have used to suppress these facts is something that so far has not been made public. Let me repeat, that I stand ready to furnish evidence to establish each statement I have made.

THE REMEDY.

What are the American people going to do? They will not longer submit to these conditions when once the facts are known-as soon they must be. These foreign ships discriminating against American products are largely controlled, if not actually owned, by foreign governments. The Hamburg-American Co., for illustration, is practically a part of the Government of Germany. Yet these foreign steamship companies are discriminating against this country, in favor of Europe particularly. This is strongly shown by the discrimination between this country and South America in favor of the European countries. The important question is, Is not this discrimination practiced by these foreign steamship companies, under or controlled by foreign governments, a violation not only of the letter but of the spirit and the intent and the purpose of commercial treaties with those countries? Under these conditions should we hesitate to abrogate these treaties?

Again, by the giving of rebates to shippers in this country and by the giving of special rates to particular great interests in this country, are not these combines violating our laws?

Shall we have one law for the American trust and another law for the foreign trust that is trading within our borders?

One thing is certain-that this country can never have its fair share of the commerce of the world until these combinations of foreign steamships are destroyed. It is also certain that no power but that of the Government is strong enough to destroy them.

This is not a party question; it is one of national prosperity, of national pride, and of patriotism. Let us forget politics and party and, remembering only the [Applause.] flag and our country, join hands to fight for what is justly ours.

I think that we should immediately appoint a joint committee to investigate this subject; to secure the facts; to report what should be done; to report whether or not the action of these foreign combines is in violation of our treaties and our laws; and to report as to the methods practiced and followed by them.

In my judgment this is one of the most important matters before the country to-day. Further than this, I think we should at once proceed to enact retaliatory legislation. I believe we should increase the tariff 10 per cent on all goods carried in any foreign ship to this country that is in any conferences or other combines whereby freight rates are fixed and agreed upon.

I believe that we should prohibit any foreign line that gives rebates or special privileges from carrying goods to or from our ports, except to and from the ports of the country to which such line belongs.

I believe that any line of American ships that is giving rebates or that is in any conference" where freight rates are agreed on, unless they immediately withdraw from such conferences, should have canceled by the Postmaster General any contracts that this Government may have with them under the law of 1891. [Applause.]

I have introduced a resolution for the appointment of such a commission and a bill of this character I have suggested. I trust that I may have the support of both parties on each of these measures.

We have done much to destroy monopolies, trusts, and combines here at home on the land that have been preying on the people. Let us sign a new declaration of independence and determine that we will be free from the greatest of them all, the foreign ship combination, that absolutely dominates our trade on the sea. [Applause.]

Mr. SHARP. Mr. Chairman, I have been greatly interested in the gentleman's revelations here, which have, I think, indeed, been revelations to all of the Members of this House, and they prompt me to ask this question: If his statement to the effect that rebates had been given to the great combinations in this country does not explain very largely the fact that there has been no incentive upon the part of money interests in this country to build separate, independent, and competing merchant marine of their own? In other words, have they not been sufficiently sugared from time to time by this great shipping trust abroad so that there remains no reason for their going into the ship business?

Mr. HUMPHREY of Washington. I think probably the best answer to that is the answer that appears in many places in the evidence taken before the Royal Commission. When they were asked why this was done they said that these combinations in America and one combination in Canada were so strong that they could dictate the rates themselves, and if they did not do it they would probably start their own lines.

Mr. NORRIS. I noticed the gentleman stated, in reference to the HamburgAmerican Line, that it was practically owned by the German Government, or something to that effect.

Mr. HUMPHREY of Washington. Yes; very largely.

Mr. NORRIS. I want to ask the gentleman if this line is a corporation organized under some law in Germany?

Mr. HUMPHREY of Washington. I am not sure as to that, but I think so. Mr. NORRIS. In what way does the German Government own the line; I want to know whether it owns the line itself or whether as a matter of fact it is a stockholder in the corporation which does own the line.

Mr. HUMPHREY of Washington. I will say to the gentleman I find the same difficulty that one of the witnesses who testified before this royal commission found in relation to this question when he replied that he found it was very difficult to find out in regard to the exact status; that it was carried on secretly; that they gave rebates over the railroads, and it was generally supposed that the German Government owned a large portion of the stock. The exact facts you can not ascertain.

Mr. BARCHFELD. If the gentleman from Washington will permit, I will answer the gentleman by stating that the Hamburg-American Company was founded and supported by direct subsidy of the German Government, agreeing to guarantee to pay the interest on the bonds of that corporation if it was formed. Mr. NORRIS. Do they own some of the stock?

Mr. BARCHFELD. The German Emperor is a stockholder in the corporation himself.