New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-09-13
Says Germans
Plan to Grab
u. S. Ship Trade
Kerr Official Charges Com
tract With Hartman Will
Permit Berlin to Rebuild
at Americans Expense
Would Cancel Agreement
Clegg Asserts Tentons Will
Use Merchant Marine i'm
This Country as ''Crusch"

tract made oy the Hamburg-American
Line with the American Ship and Com
meree Corporation, with the approval
Of the United States Shipping Board,
has effected plan to rehabilitate it's
trade in the United States, South
America and the Orient at the expense
Of American shipping interests, accord
ing to charges made in statement
issued yesterday by Alfred E. Clegg,
viee-president Of the Kerr Steamship
Company.
Mr.. Clegg asserts that under the
contract SO per cent of American trade
will 90 to the Germans, that American
ships will have to be withdrawn in
favor of German ships from trade
routes built up by Americans, that for
the next five years Anerican-built ships
will be used las crutch" for German
trade while the latter is convalescing
and that in the event of war American
shipping will lose all the advantage it
has gained in building up its merchant
marine during and since the last war.
Il believe the contract should be can
eeled at once" said Mr.. Clegg, in ex-
planning the purpose of his charges.
THE Shipping Board, although having
ratified the contract, still has it in it's
power to nullify it. Abundant evil
dence is available to show the injury
which will accrue to American ship
ping If the contract continues.
Germans Said to Have Advantages
1.-THE contract throughout is stamped
with the German desire to be helped
over the next FIVE years, when proba-
hly only the Americans will have steam
ers. After FIVE years every slip-up or
default of the Americans is an adj
vantage for the Germans for the bal
ance of the contract period"
Mr.. Clegg's charges are the outgrowth
Of controversy between the Kerr
Steamship Company and the American
Ship and Commerce Corporation, Of
which W Averill Hartman is presi-
dent. This controversy developed after
the Hartman interests had paid
s4,so0,00 to Mr.. Clegg and H. F. Kerr
for stock in the Kerr Navigation Cor
poration. Mr.. Clegg alleged that he,
Mr.. Kerr, Kermit Roosevelt and Cen
eral George W. Goethals withdrew as
officials of the latter corporation after
the Hartman interests had entered into
contract with the Hamburg-American
Line, which was unfavorable to Ameri-
can shipping.
The Hamburg Line, through
Huderman, W. G. Sickel and julius P.
Meyer, Mr.. Clegg said, were about to
make a contract with the Kerr firm on
terms favorable to American shipping
when they discovered they could OBJ
tain better terms with the Harrimans.
Mr.. Sickel, formerly director in the
Hamburg American Line, was made as
sistant to Mr.. Hartman as president
Of the American Ship and Commerce
Corporation. tAf
Berlin Sees Partnership"
In August the terms of contract
aetween the Hartman firm and the
German line were announced by Ad-
miral Benson, chairman of the Shipping
Board. This contract, Mr.. Clegg al
leges, contains clauses which ma
partners" of American and German,
shipping by sharing profits and giving
the Germans the use of American ships
10 rebuild their world trade.
To show that in Germany the con-
tract is regarded as a partnership"
Ar. Clegg quotes from the Schiffahrt
zeltung Of Hamburg, which under the
heading Our Field Is the World" is
quoted as saying: "The agreement
with the Hartman firm is the first step
on the way from nothing to a new
prime. The German flag will again
wave over the ocean. and, though the
title be changed to Hamburg Anne rika
Linie Gemeinschaftsdienst Git. part
aershIp service, the basis is German,
and the hope remains that in twenty
years the old Hapag will again traverse
the seas"
Mr.. Clegg in his statement says in
part:
assuming the enforcement of the
provisions of the Jones bill, it is a
foregone conclusion that American
steamers will be able to operate in
american trades in successful Compel
s1tien with vessels of any other Dag.
Inc contract, therefore, in giving so
per cent Of an American trade away to
tne Germans assures to the Germans,
~hen they can get their tonnage ready,
. considerable portion of American
trades which, without the assistance
s.ssn 70 the Germans by the american
snd OF this particular combination,
would be in the hands Of other Ameri-
can corporations.
Americans to Act as "CruEch"
The American end will have COM
ihahd OF tonnage. while the Hamburg
american Line will, in all probability,
ana have no considerable amount Of
owned tonnage; therefore, Americans
VIII act as crutch for the German
somp any for the next five years. and it
ourlng these Ave years that, in the
reconstruction of world trades, the
maritime nations will strive to get as
great portion Of world carrying trade
as IL possible, with resultant keen
competition which will result in none
@sy 1898 TO many stearns ship companies.
sI. american passenger ships, after
SSsaaing up any trade, say Hamburg
ae" YORK, have assisted German pas
sengsf ships into the trade, it will IN
aoooted!y follow that should there
s some later slump necessitating the
s;xsng on Of a surplus tonnage, a por-
LUZ aae OF the American tonnage will be
~ lharawn and employed, If practic-
@"iss IN some other service
Vne looks in vain for a provision
sdpaiaflng, az we insisted in our nego-
aauons with the Germans, that under
no circumstances shall the pioneering
american steamer be withdrawn, and
.herefore the American owner faces
me possibility oS having to withdraw
sahage from the United States Ham
Derg run in favor Of German flag
samer, and having no recourse but
enter his vessel into trade, say
rom Hamburg TO the west coast Of
S1sth America, in the building up OF
1sIeh ne may have no particular i'm
1fsst, and which is very likely TO re-
@ais IN money loss in addition.
Says United States Faces Penalty
Section 8 Of the contract precludes
Ok t..