The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-10-06
Hartman DETAILS
SHIP PACT Terms.
Says American Company Pays
Hamburg Line Only for
Actual Services.

NEW YORK, Oct. 6.-w. AvorhiiI
Hartman. president Of the American
Ship Commerce Corporation. made
public yesterday the general agree
msnt entered into between his corp
grafton and the Hamburg-Amsriean
Line. D..
At the same time Hartman save
out . copy Of the tentative opsrat-
ing agreement between the line ana
a subsidiary Of his company yet to
be organised
The contracts which Hartman re-
veAIed have been the subject OF bit
ter attack by his former associates
In the shipping business. Alfred r..
ciexg and FarQusharson Kerr.
Hartman prenxed to the executed
general agreement 4 statement OF
ReAr-Admifal Benson. present head
Of the Shipping Board, that he
"whoishsartediy and unressrvsdiy
approved It."
WHY RoOsEvELT GOT OUT.
This general agreement bore the
signature Of kermet Roosevelt IS Soc
Rotary of the American Ship and Com
merce Corporations. Roosevelt II nov
associated with Clsgg 4 Kerr. He
gave out q statement last night that
he had resigned As secretary because
"of the doubtful allegiance OF some
new elements" In the corporation. He
had previously attacked the appoint
ment OF w. C. Sickel, formerly Amer
lean representative OF the Hamburg
American Line, as assistant TO Harri-
man.
In shipping circles the publication
OF the tentative operating agreement
which has been practically settled
upon. was regarded as an opening
wedge for the fullest publicity on the
activities OF the Shipping Board. These
have hitherto been shrouded in Sc
crecy.
HOW HIGHT CAME TO LIGHT.
on one hand ane Hartman and his
public attention when agents of the
Treasury Department at the Chase
National Bank impounded for excess
profits tai purposes $4,000. 900 in cash
paid over by Hartman for the ma
jority stock of the Kerr Navigation
Company.
The contest between the two inter-
ests has been marked by litigation
and press statements. in which 1t was
charged that Kerr and Clegg. British
subjects, were unduly favored by the
shipping board during the war. and
that the present Shipping Board. by
approving tho contracts made public
yesterday. was sacrificing the Ameri-
can mercantile marine to German In :
terests.
PAID ONLY FOR SERVICE.
Hartman said In his statement:
Tho American Company pays no
money to the Hamburg Line except
for service actually rendered to the
American Company by the Hamburg
Line.
1.-THE contract gives to the Ameri-
can Company the use of tho facili-
ties, experience. and established trade
routes Of the NEUTRALITY-SUSPICIOUS.
Line.
During tho twenty years OF the
contract. the American Company has
completes control of all activities Of
tho Hamburg Limo in the United
States.
The contract gives the American
Company the right to participate in
80 per cent of all business originated
in Hamburg by the most important
shipping agency in Germany. With
out this contract the American Com
pany would have no right whatever
to participate In that business.
ONLY ONE OBLIGATION.
"On its part, the American COM
pany assumes but one definite obliga-
ton. namely, to act as agent In
American ports for tho Hamburg limo.
In all other respects, the American
company shall put its money and ef.
fort only in directions which appear
to be profitable.
IF the contract were not made with
an American company. 1t could be
made with a company Of some other
country.
1.-THE American company II not
obligated to inaugurate any service,
except the limited passenger service
for which ships have already been ar
ranged, unless its Investigations lead
it to the conclusion that such service
promises q profitable result.
when these negotiations were
pending originally between the Ham
burg American lines American repre-
sentative and the United States Ship
ping Board, the details Of the pro-
posed agreement were placed before
the Senate Committee on Commerce,
and such an agreement had that
body's sanction by a vote OF 10 to f."