New-York tribune., 1920-10-04
Hartman Will
Publish Text of
Shipping Deal
Believes Agreement With
Hamburg-American Line
Will Appeal to People of
u. S. as Important Step
Gives OutLetter to Benson
Action Is Result of Charges
of Concessions Made to
the German Corporation


with the Hamburg American Line had
made g deal unfavorable to American
shippers and calculated to restore the
pre-war German trade routes were
day by w A. Hartman. president of
the American Ship and Commerce Cor
poration.
Mr. Hartman said: "The American
Ship and Commerce Corporation will
shortly, when details have been fully
arranged, make public the actual text
of that agreement. Our company has
kept the United States Shipping Board
advised of every step taken in nego-
tiations, and we are convinced that
when the full details are made known
they will appeal to the American people
as constituting q step of great value
and importance in the development of
the American Merchant Marine 1t is
the policy of this company to give full
publicity to all of its policies and ac-
tivities having a public bearing"
The charges that the Hamburg
American and Hartman contract were
detrimental to American shippers and
demands that the full text of the con-
tract be published were made by Alfred
E. Clegg and H. f. Kerr, after the
latter had sold to the Hartman firm
$4,000 600 worth of stock in the Kerr
Navigation Corporation. Mr.. Clegg
said that he, Mr.. Kerr, Kermit Roose-
Welt and General George W. Goethals,
had withdrawn from the Kerr firm be-
cause of discomfort over concessions
made to the Germans.
Publishes Letter to Benson
Mr.. Hartman also made public
letter he lad written on July T last
to Admiral Benson, chairman of the
Shipping Board, concerning the deal.
Ship and Commerce Corporation is a
holding company. 1t has paid-in
capital of $40 400, ,994, and controls the
majority Of the stock of the William
Cramp Sons Ship and Engine Build
ing Company and of the Kerr Navi-
cation Corporation, whose present
hect consists of ten freight steamers.
some of which were purchased from
the Shipping Board
The agreement with the Hamburg
american Line has been concluded by
the American Ship and Commerce Cor
poration substantially along the lines
OF the contract that was proposed
originally between the United States
Shlpping Board and the Hamburg
American Line
"Mr. Sickel-the former representa-
tive OF the Hamburg American Line in
the United States-informs me that a
copy of that original proposed agree
ment is on file in your Office and, if
you wish to make a comparison, you
will be able to verify my statement
Mr.. Sickel is an American citizen
having been born in this country of
American parentage, dating back nearly
100 wears. Before being associated
with the Hamburg Line Mr.
Slcke spent number of years with
American steams hip companies and has
had broad and valuable experience.
He has severed his connection with
the Hamburg American Line com
pletely and has entered our employ
without any commitment on our part
as to his future
He was under contract with his
former principal - the Hanburg-
American Line-for period Of six and
one-haf years still to run. but he has
secured release from that contract
to serve us without any conditions as
to the future. We have most carefully
inquired into his antecedents, his
training and his character and feel
assured as to all of them
Our idea in securing his services
is that his knowledge of the European-
Continental traffic and his long asso-
citation with the Hamburg American
Line in this country should enable
him to be of unreasonable assistance
to us IN developing our various prof
ects for the benefit Of the American
Merchant Marine'
"On June 30 | handed you rough
copies of the agreement with American
Ship and Commerce Corporation and
the Hamburg American Line | now
take pleasure in inclosing you finished
copies. Such changes as have been
made from the form in which it was
proposed originally between the Ham
burg American Line and the United
States Shipping Board Will, believe,
appeal to you, as they have TO US, and
also believe that you will find that
they are even more advantageous to
American shipping than originally pro-
posed.
THE Kerr Steamship Company. Inc
whose stock is owned we believe, in
almost its entirety by H. F. Kerr and
A. r. Clcggl is now the operating
company for the steamers owned by
The Kerr Navigation Corporation. A
fiyeyear contract exists between the
two companies
at has been demonstrated to US that
the Kerr Steamship Company, Inc
not in itself owning single ship
secures all the prestige and good will
that should belong to the owners, i. e,
Kerr Navigation Corporation (an
American corporatl0nl.
Upon the cancellation Of the work
ing agreement between Kerr Naviga-
tion Corporation and Kerr Steamship
Co. Inc, it is the attention to make
an operating arrangement With q new
operating company, to be founded upon
the present Messrs. Livermore, Dear
born & Co. Inc, who are now the agents
Tor the Shawmut Steamship Company
and are operating United States Ship
ping Board ships to Mediterranean and
Far Eastern ports, and the stock of the
newly formed company viii be held or
controlled by American Ship & Com
mcrce Corporation and possibly other
purely American shipping companies
affiliated with American Ship & Com
merce Corporati on"
Explaining developments since the
letter was written, Mr.. Hartman said
1T should be stated that since this
letter was written the notice has been
given OF the purpose to cancel the
operating contract with the Kerr
Steamship Company, and the American
ship & Commerce Corporation has ac-
cordingly purchased the holdings oi
Kerr Navigation stock previously
owned hy- Na-cra Erer~ & Clepr The