New-York tribune., 1920-11-16
Hamburg Pact
Declared Bad
For
CovernmentO Opposed
to Hartman agreement,
for Shipping Operation.
Is Claim Made in England
American Trade Affected
q. S. Exporter the Sufferer,
1t Is Asserted; Advantage
Said To Be German Lines 5


Said To Be German Lines
That the German government is op.
nosed to the proposed shipping agree
ment between the American Ship and
Commerce Corporation and the Ham
burg-American Line because it would
be disadvantageous to Germany is
British view Of the situation. Accord
Inc to this argument. which is pre-
gented by the Syren and Shipping, of
London. the Hamburg American inter
ests will gain by the arrangement, but
the German government doubts the
eventual benefit to Germany.
1Anyhow," says the British publica-
ton, tive have not noticed any official
bouquets presented from Berlin. Ad-
nittedy, the agreement is an excellent
coup for the Hamburg American Line,
and to certain extent for German n
dustry and commerce. But regarded
from q broadly national view, is it not
likely to cause more harm than good
to Germany?
@For example, the American Ship
ping Board recently applied for en-
trance to the Far Eastern (freight)
conference, but declining to abide by
Che rebate system, has failed to OBJ
tain admission. The Hamburg -Ameri-
can Line routes, to be restored under
the agreement would have to be op-
Grated for a time by American ships
only, ana eventually 70 so per cent by
American ships. That would mean
that Hamburg American Line sailings
would not have conference benefits.
Sees German Disadvantage
"Aeain the Shipping Board threat
ems discriminatory treatment, which
will eventually mean retaliatory meas
ures by the shipping powers. The
Hamburg merlcan-Harriman combins
will suffer severely in that case.
Thirdly, the question is being wide
iy asked in Germany as to what would
happen to the American tonnage IN the
event OF America being involved in 4
war. The tonnage, or great portion
Of it, would be withdrawn, and Ger
many would be no better off than now.
In fact, she would be worse off.
"Fourthly, the German governn ent
cannot regard much longer with equa-
nimity the acquisition Of control over
her industries by foreign capital. 1t
Is not to the benefit of Germany or.o
her reconstruction.
1.-THE agreement on the surface looks
avery smart piece OF business for the
hamburg American Line and for Ger
p1t ho to1I
10 happen in the future? Besides. the
alliance of German and American lines
has always been condemned in Ger
many. and though various efforts have
been made, none has ever materialized.
"At the same time the German au-
thorities have to look at the matter
i.om al sides. If the agreement is
rot approved, what other course is open
to Germany? She has great shipping
experience, she requires certain
amount of shipping and she has large
seafaring population. But she has no
ships and her building is restricted.
Hobson's Choice for Teutons
."lf she we're in position to buy or
charter ships the agreement would be
vetoed and efforts would be made
gradually to rebuild German shipping
Of her own. But the vital question to
Dc solved is how and where to get the
.h'ps. She will not buy or charter
american ships, because they are ex-
penslve to operate and to insure
In way, therefore, Germany is in
cieft stick. The Hartman agreement
Hobson's choice"
AS to the American end Of the agree
nent, the British publication takes the
ground that at is contrary to the we'll
oelng OF American cornrnerca
Inc Hamburg gAmerican Line IS a
g'eat deai more than private steam
snip company" the paper says. at is the
s1port-carrFins medium of the German
industrial trusts, and an alliance OF
American capital with the German
oshks-for that is the essence of the
:sreement-to restore the Hamburg
american ocean services with American
nlpplng means the financing by Amer
iea and TIE carrying by American ships
exports Intended TO compete with
sad' II possible, to exclude American
ss,1ports from the markets. And in this
.ae hamburg American Line will have
He additonal advantages OF depre-
gated currency and the privilege of
a1lng the westward rates.
Effect on American Trade
The person who Will eventually have
r., VIII Ds the american exporter.
- take one fed alone This agree
ash. is not going 10 develop Alncri-
~ business in South America. /. is
seing to stiae it, for it provides Ger
sa1ay with ready-mad American
sss sss. TO carry her cheaper exports to
aaas market at cheaper freights than
Ansr'ca can afford ~ accept.
~ means that whatever losses arc
q .Aae the American company will have
pear hem, for it can withdraw from
ssap'oh,ao.e services only when operat-
~ iosses are shown There NAY be
:. net deficit, but IL the operating
saSafges SHOW profit the loss must
D'rne 70 the bitter end.
published statistics show that the
s..'a,ion ~ experienced managers Of
.sIpp,ng Board vessels shows a profit
!. ohiy per cent. from which has TO
cSeocted depreciation, interest on
ss,,'ngage and on capital. II II net loss
t,,sag 70 be incurred that il the ar-
-. o. The corporations shareholders
I-.t A.. y Is distinctly q matter for the
s'ican people to consider whether
-! are iustifed in allowing their