The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-05-27
Shipping Combine Limits German
Lines Operations in the Ports
of England.
NO COMPETITION IN GERMANY.
Merger to Receive Dividend on 90.
100000 Marks and to Pay Sub
ordinate Companies Six Per
Cent on Equal Amount.

Berlin, May 26.-The directors Of the Ham
burg-American Line have issued a circula!
civulging the terms of the agreement ar
rived at between the Morgan shipping com
bine and the Hamburg-American and tht
North German Lloyd lines
The two German companies undertake &c
pay the combine an annual sum equal tG
a dividend on share amounting to at least
3.0W.0 900 marks. This provision was agreed
on when the capital of the German lines
was S0.C0o.0J0 marks each, and In the event
Of an increase in the capital Il contingency
which. meanwhile. has arisen. the combi-
nation reserved the right of increasing the
annual sum aOcruing to it, to a amount
equaling dividends of % per cent OF the cap
ital stock.
The syndicate, in return, pledges itself to
ray the 6 per cent on a correspond
ing amount of capital. and not to send amy
ships to a German port without the consent
of the German companies. The latter are
bound to limit their traffic from British
ports. They can. however. continue the ex-
listing services. The Germans are not pre-
cluded from including in their ports Of call.
hereafter. British ports from which the
COMBINE does not run services, nor from
running their South American. Mexican and
West Indian services from British ports.
even though the combine utilizes the same
ports.
What Combine Offers to Do.
The combine. on the other hand. under
takes to allow at most two ships weekly,
In each direction. to touch at French ports.
The Germans are barred from touching at
Belgian ports. with ships running to and
from America and agree not to touch Eng
lish ports exceeding seventy-five times. for
each company. each way, making an aggre-
gate of 800 calls. The Germans are free to
increase their sailings from French ports,
In which case the combine is entitled to an
increase proportionately.
The establishment of new lines or the ey-
tension of the existing services. if so large
as to double the present number of sailings,
must, before being carried out, be sub
mitted to a Joint committee of the con-
tracing parties. The committee will not
nave the right to prevent an extension.
1t Is agreed that ir the event of either
party desiring to effect such extension or
establishment Of new lines. 1t is bound to
give the other the option Of participating
does not affect coastal or similar minor
services. The North Atlantic cabin passsn-
ger traffic of both parties Is to be regu-
lated by a special pooling arrangement, and
1t Is agreed to maintain the present pool
regarding steerage passengers.
The freight business will be conducted
under the existing conditions, except mu-
tual precautions against outside compete
ton.
The agreement further provides for the
arbitration OF differences. and it becomes
the United States and Germany. Great
Britain and Germany or the United States
and Great Britain. The combination agrees
to leave to the Hamburg-American line its
services from New York to East Asia, and
New York TO the West indies.