New-York tribune., 1920-09-28
U. S. Ships to Go
TOCernlany. L.
British View
England Should Prepare for
Hamburg.American Pact
Working Out That Way,
Declares Shipping Paper
Predicts New Agreement
North German Lloyd to Get
Similar Arrangement With
America, 1T Is Predicted

That Germany may secure the Amer
lean tonnage being operated under the
agreement between the Hamburg
American Line and the Hartman in
terests, and that Great Britain should
prepare FOR such contingency, is the
chief thought pervading a discussion
Of the contract between the American
and German companies, printed in Fair
play leading British shipping publ
cation 1T may be safely assumed
,ha, the agreement with the Hamburg
American Line is but the precursor of
similar agreement with the North
German LLOYD the article adds, con-
.inuing:
We, on our part, also have our COM
bines. and though there are many who
have looked askarce at the vast shipping
consultations which have sprung up
of late years no one will deny that
were it not for their existence, our
powers Of meeting the German Amer
lean challenge would be gravely COM
promised. Though what will happen
10 the single ship companies and other
small craft when the giants meet in
the arena is problem which should
not be airily ignored, much less
shelved.'
According to the British publication,
q reading OF the contract between the
American and German interests fully
justi6es the words of an American
fnancier, quoted by Hansa Ca German
shipping paper) that in future the
Hamburg American concern will ride
first class around the world"
Fat Prize" for Germany
$50 far as benefit is concerned,p con-
tinues Fairplay, there seems to be no
probable possible doubt whatever but
tina, the Hamburg American Line has
pulled an uncommonly fat prize out Of
the lucky bag.
To begin with, apart from the fact
that II taxes the water once again under
the agis Of an associated ally, it will
represent the American corporation in
f Germany, and that means a settled in
come, which is a thing by no means to
De sneezed at IN these unsettled times
Moreover though the tonnage to be
placed IN the various lines will neces-
sariIy be American for some little time.
II Is obvious that it will have been paid
Tor at prices which experience-pre-
war eHperlence-proves cannot be JUS
tined by earnings.
For instance, in 1900, when the Nor
top OF the market, an arrangement was
entered into between the combine and
the HamburgAmerican and Eord-
deu'5cher Lloyd companies. whereby
tne combine was to receive the diyl-
dends on 10000 900 marks. or 25 per
cent OF the capital OF each company.
ana n return paid those companies in
terest at . per cen. on the same amour.
ana certain working terms were agreed
upon.
FORMER Agreement Dropped
But with the German companies
quietly passing their dividends the af-
1air was found to be as lopsided as it
was expensive for those holding the
american end of the stick, and the
power being there the agreement was
cancelled. Can it be doubted that the
same thing will happen under the new
arrangement The American Corpora
ton is paying high price for its tom
mage and Is running the boats under
aohormal, expensive conditions The
herman companies, on the other hand,
Will probably be unable to place any
tonnage in the lines until prices are
lower. and 1t necessarily follows that II
the cost 60 them works out at, say, 80
per cent Of what is entailed in respect
of the American boats and such an
event Is more than possible they vii,
De able TO run at a profit when their
partners are making loss.
Inc latter 1t is true, nave power to
~thdra" their boats from the service
under the conditions indicated, but
mere IS nothing 20 prevent the German
INES from continuing the services and
supplying all the tonnage; and where
@ou!d Americas equal rights and equal
participation be then" >"
e Inc chief point TO bear in mind, the
British paper states. is the grave like.
iihood Of the ultimate Teutonizing OF
the combined fleets.
Sees L. S. Tonnage Absorbed
The writer adds:
Even though Germany is barred
from participating in any Of she 40 per
cent Q: tie capital Of the American
Snlp and Commerce Corporation there
y. / presume, nothing to prevent her
from acquiring the American tonnage
should the corporation fad that it could
not oc run ut profit and decide to
dispose of il.
The point is, are we preparing our
selves 70 meet such an evident pos
aiol!ity? We can fight combine by
combine. and, should occasion arise, we
can doubtless face German competition.
Enether !, De alone o. in company. Bat
n would be foolish 70 forget what wss
happening before the war, when the
herman mercantile marine was chal-
iehHng. "'n high measure Of sue
cess, our ocean supremacy, and IL
WOULD BE- more foolish still not TO rec
o2nize that. With the Jones act in op-
sra'ion and with similar legislation
COUPLES. contemplated in other direc-
Hohf, *f nall have to put ourselves In
faF better position for offcnse than
sh? on" would ever have dreamed nee
'ssafy ter years ago.
america has thought ft TO give Ger-
many ohanc" Of complete rehabilita-
ION On the waters. and H. is for us to
nsclde % ~hst extent re can allow
Ieis new Siamese twin to find such
9'aoIe-eibow room for itself as it's
m"na'rost'" demands"