New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-05
CUNARD AGREEMENT.
Details of Nc5o Contract zeith the
British Government.

London. Aug 1.-THE agreement between the
Admiralty the Board of Trade. the Postmaster
General and the Cunard Steamship Company
dated July 30 is issued in parliamentary paper
this evening. Accompanying the agreement Is
the draft of trust deed. securing the de-
benture stock which the governments ad-
vance Of S13,0oO,O00 for building the two new
steamships is made.
The new mail carrying agreement substitutes
for payments by weight a fixed annual pay
ment of $4,000 during the life of the con
tract. which is for twenty years, dating from
the first sailing Of the second of the two new
steamships 1t provides that the mails shall be
carried more speedily than at present The
company viii be bound to utilize the best steam
ships for the mail service. and the agreement
stipulates for deductions from the subsidy IN
the event of the company falling TO carry out
the terms Of the contract.
All the company's steamships between Liver
pool Neu-Yorll. Boston. the Mediterranean
ports and Havre. including the new steamships
which will nave d speed of twenty-four 10
twenty-five knots, will be at the disposal OF the
Admiralty for hire or purchase in the event OF
war. The vessels must he maintained under
the British flag and managed without any IN
due increase in freight charges or undue prefer
enCe against British subjects. The masters or
icers and engineers of all the vessels must al
dition applies TO at least three-fourths of the
crew.
On the Camparia Umbria and Lucania until
the new vessels have beer completed. and there
after on the new vessels. all the Certifcated Of
fcers other than the engineers. and not less
than half the crews, must belong to the Royal
Naval Reserve
The company is not allowed to sell any vessel
whose speed Is seventeen knots and upward
without the consent Of the government which
viii indicate the plans for the new vessels with
a view to their conversion into armed cruisers
The company must maintain the gun mountinss'
etc. ready for use. For these concessions the
government agrees to subsidize the new vessels
at S375.0OO a year each The loan of S130OOOOO
which will bear interest at "a per cent. ana Is
to be repaid in twenty annual instruments VIII
rank as the first charge on the whole Cunard
The agreement provides for reduction IN the
subsidy for the new steamships in the case OF
their failure to attain minimum speed u
tWenty-three and One-half knots
The trustees for the debenture holders are
Sir Francis HopwOod. on behalf of the govern
ment; Lord InvercIyde. for the Cunard com
pany. and Lord Revelstoke who has peen
elected by his colleague The company must
issue to the governments nominees such Young
power as will prevent the passing Of any specla!
resolution by the shareholders IN violation OF
the contract.
The revised articles of the Cunard company,
which are included in the parliamentary paper
contain the provisions previously announced,
stringently excluding foreigners from holdlng
shares in the company, directly or in trust
The agreement also provides for weekly
mail service between Queenstown ana New p
York the company to carry the whole week s
mail. If necessary a special payment VIII ne
made if a midweek service is estaoIlshPu. Inc
opinion in the lobby is that the bargain IS
equally good for the company and the govern
ment.