The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-06

Features Of Operating A9rcements
Following are the most important sec
lions OF the text OF the operating sagree-
ment:
Section 3. During the term OF this
agreement the parties shall agree from
time to time on their respective pro-
grammes for the building or acquisition
OF passenger ships for the services e<tab-
lished under the provisions of section
OF said agreement. particular considera-
ton being given to the most profitable
type of ships for tho particular services
and the avoidance OF overtonnage In any
service. To this end It IL understood
that the parties are TO extend to each
other all the technical knowledge pos
sessed by each. so that passenger SER
vices inaugurated and maintained here
under shall supply the highest type OF
service In that trade.
1T 10 understood that tho corporation
as soon as practicable. but within
period of one "a year from the date
hereof. shall supply for the service be-
tween United States ports and German
ports passenger ships and or COM
bination cargo and steerage passenger
ships having a total tonnage not exceed
Ing forty thousand GO, 00o) gross regis
crease Its initial aggregate tonnage en-
|tered in said service beyond said forty
thousand (<0,O0o) gross register tons
unless the line agrees to such Increase,
tdt until such tonnage limitation 10
reached the corporation may add ships
TO those In the service, and I or shall
have the right of substitution of ships.
The limo shall have the right TO enter
passenger ships In aaid service within
nifty per cent. (50%) participation. only
II 1t Is mutually agreed that the nuH-
| ness. 1ustlfes the addition of ships.
Passenger Tramc Division.
IF at any time the parties decide that
additional passenger ships arc required
| In particular passenger service. and at
that time tho parties are participating
| equally therein, each party shall have
the privilege Of supplying oneshaif of
the additional passenger ships required.
But II at such time either party has less
than it's 50 per cent. participating In the
service such party shall have the privi-
| lege and prior right to supply all or any
| part or additional ships required within
| It's so per cent participation.
III at any time o particular passenger
! seryice Is overtonnaged, then In order to
adjust the tonnage OF that service to the
trade requirements the surplus ships
shnll be withdrawn and. II practicable,
| shall be entered In som, other services
hereunder. but II that Is not practicable
then such ship or ships snail be oper-
ated in trade or business to be agreed
upo'l between the parties. and such trade
or business shall be considered and
| treated az part Of the particular pas
| sengsr service from which such ships
| shall have been withdrawn.
SECTION 4. For tho Inauguration OF
| freight services between tho United
States and Germany the parties shall
agree on the amount Of tonnage re-
Qulred for the trade in both directions.
Each party shall have the right to sup
ply. tonnage Calculated In gross register
! tohs) for the Inauguration Of the service
within its SO per cent. participation.
| II either party fails to supply its share
the other party may supply the de-
nciency In such share.
Section s. For freight services here
under between Germany and ports other
| than United States ports ii Is UNDER
/ stood that In the first instance the line
| IL 70 propose the service to be inaugu-
rated and the amount Of tonnage re-
| CURED for that service. and shall estab-
| lish the schedules and determine the
| rates with due regard to the conditions
| OF the trade. II the corporation desires
to establish q particular service which
| the line has not proposed then the cor
ing to make the proposal. and IL the line
| falls to propose such service the corpo-
ration may then establish the service lin
| the same manner as II the line originally
had proposed 1t.
Putting New ships Into Service.
when any service is proposed by the
| line under this section the corporation
! hat has tStv-tt, 40 ftor tha
ceipt of the written proposal to accept
| or decline to enter such service. and II
| the corporation fails to accept such PRO-
posal within said thirty (30) lay pc
| Rod then the line Is free to put on
within ninety t90) days after ,:ae expi-
ration Of said thirty (30) day period all
| or a part OF the ships required for the
inauguration Of that service. II the
limo within said ninety (s0) day period
fails to enter any ship in the service the
proposal will be regarded as a nullity
and a new proposal will be required In
| connection with the establishment Of
that service.
Each party shall have the right TO
supply tonnage Calculated In gross
register tons) for the inauguration Of
| the services referred to In this section 5,
within its nifty per cent (60<) partici-
patton.
Section IL II at any time either
party IL maintaining particular
Freight service without participation
/ by the other party, the party maintain
| Ing the service may withdraw. ala ~
| any Of It's ships from such service upon
| three (3) months written notice to the
other party II In the Judgment OF the
party maintaining the service IL Is
being operated without profit or prom
ises no ultimate profit. such withdra wal
/ to be subject to contracts with third
parties existing at the time OF the
/ notice.
.If at any time either party partici-
! ating In any service established under
Section I (b) hereof determines that
II Is not In It's interest to continue Its
/ participation In such service, that party
upon not less than one % years writ
ten notice TO the other party may with
I draw all OF Its ships from such SER
! vice, and in the event OF such with
drawal the other party may at Its
option either withdraw its ships or
I supply other ships to replace those
withdrawn.
IF the party not withdrawing elects
to continue such service after such
, withdrawal by the other party. the
party Withdrawing from the service
shall not thereafter have the right to
participate In such service. In case
any service In discontinued az above
provided, then tho party Withdrawing
it's ships In the first instance shall
offer to the other. subject to acceptance
within three t9 months, the right to