The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-06
HARTMAN SAYS HIS
SHIP PLAN Is Us. AID


Continued from First Page.
world. We regard the whole undertake
ing as brilliant American opportunity"
Mr.. Hartman in his defence of the
the following:
The American company pays no money
to tho Hamburg line except for service
actually rendered to the American COM
pAny by the Hamburg line.
During the twenty years OF the con-
tract the American company has COM
plete control OF all the activities of the
Hamburg line In the United States.
The contract gives the American COM
pany the right to participate In SO per
cent OF all business originated in Ham
burg by the most important shipping
agency In Germany. Without this con-
tract tina American company would have
nc right whatever to participate In that
business.
The AMERICAN company on its part
assumes but one definite obligation: To
act az agent in American ports for dle
Hamburg line. That the American com
pany shall put its money and efforts
only in directions which appear to II
profitable.
The American company Ia not obii-
gated to inaugurate any service except
the limited passenger service for. which
rhips have already been arranged I'M
Il SIS its Investigations lead It to the con-
c'usion that such service promises
profitable result
No America ships can be asked to
withdra from the American service.
Extent Of CsnslneA Operations.
Section of tho general agreement
defines the extent Of the intended com
bined operations OF the two companies,
| which include not only trade between the
United states and Germany, but South
I S,saerican. Mediterranean, indian. Afri-
can and Asiatic trade routes as we'll. :
The text Of the general agreement.
beginning with Section 2, is. I'm part. as
follows:
1.-The fundamental principle Of this
agreement In this operation OF each
service as an enterprise In which each
party shall have the right to participate
with an equal amount Of tonnage tai
ways calculated In gross register tons)
| SO that II at any time there Ia an I'M
equal division Of tonnage In any service.
and additional tonnage 10 required. the
party having less than Its equal share
10 to have q prior right to supply adj
tionai tonnage up to such equal share
THE parties will agree from time -
| time upon q basis Of accounting ano
| settlement a. between themselves In re-
gard to the earnings OF the services to
| be conducted hereunder.
Section 3. The parties propose to
| inaugurate 4 passenger service between
ports of the United States and German
ports. Within six 90 months from the
date Of this agreement the parties shall
| meet and decide on the number. size.
| type. speed and entry dates OF passenger
ships that each shall supply. build or
| acquire for such service.
"Other passenger services may be
| inaugurated from time to time as the
| parties may agree, and shall be subject
to tho proviAions Of this agreement.
Passenger rates shall be agreed upon
from time to time by the parties with
due regard to the condition Of the trade.
Plans for Freight Service.
! Section 4. The parties propose to In
! augurate a freight service between ports
: of the United States and German ports.
! and shall agree upon the amount Of ton
4, mage required for the trade In both direc-
tons The corporation AZ agent under
! the provisions OF section hereof Is to
| determine the rates on eastbound traffic
and the line as agent under the provi-
l sions OF section 8 hereof Ii to determine
| the rates on westbound traffic with die
| regard In each case to the conditions
! OF the trade.
! 1.-THE parties propose to inaugurate
/ freight services between Germany and
ports other than United States ports
| As to such services, the line In the
| first instance Is TO propose the sehvices
| 10 be inaugurated. and the amount of
| tonnage required for that service and
| shall establish the schedules and deter
mine the rates with due regard to the
conditions OF the trade. II the corpora
ton desires to establish a particular
service which the line has not proposed
then the corporation may request the
line In writing to make the proposal
and IL the line fails to propose such SER
vice the corporation may establish such
service IN the same manner as II the
line originally had proposed II.
| Section s. Except as provided In thi,
agreement. neither Of the parties shall
! operate either directly or through a sub
| sidiary corporation or o corporation the
l operations of which are controlled by II
| any ships In any services which are di.
| rectiy or indirectly competitive with the
| services contemplated or established I'm.
| der this agreement.
| Each to ne Agent for other.
Section 9. The corporation IL to &C,
] as agent Of the line In United States
4 ports, and the line 10 to act a. agent for
| the corporation In German ports for MI
ships which may be employed In all the
| services established under this agree
ment. The compensation for both par
| ties az agents shall be agreed upon from
time to time. Each Of the parties re-
serves the right to establish an office In
| the country of the other, either l., its
| own name or In any other name. for TIRE
purpose OF supervising the carrying out
| OF the provisions Of this agreement and
| to do shipping business not In confiic,
with the services contemplated or estab-
lished hereunder.
For the services under Section Obi
| each Of the parties may appoint It's own
agents outside Of the United States
and Germany The remuneratl.r TO be
paid by the parties to such agents shall
be the same a. FAR rs practicable.
Section 7. The port and once organ
isations and pier facilities OF the parties
IN the United States and Germany re-
spectively shall DO at the disposal Of
each other for the operation Of the SER
vices established hereunder
Section .. The limo snail have tho
right TO transfer for execution 10 any
other German company a service sstab-
iished hereunder. or a part OF such SER
vice. OF any other duties or rights here-
under. and the corporation shall have q
similar right OF transfer TO other United