The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-06
HARTMAN SAYS
in DEFENCE SHIP
PLAN IS US. AID
Shows Hamburg American
20 Year Contract to
Prove Benefits.
BENSON is BEHIND HIM
Admiral Asserts Opposition
Is From Rivals Beaten
in Trade Race.
BUSINESS PARCELLED OUT
Kermit Roosevelt Makes An
other Futile Plea to Ship
ping Board Chairman.
BUSINESS PARCELLED OUT

ping Board CnalrIhan.
w A. Hartman made public last
night the entire contract entered into
by the American Ship and Commerce
Corporation. of (which he is president,
with the Hamburg American Line, and
which he characterized in an accom-
panylng statement as providing "a
brilliant American opportunity"
Admiral Benson. chairman of the
United States Shipping Board, who
formally approved the agreement. is
sued statement from Washington
in which he declared his belief that
the storm OF criticism with which the
compact has been assailed as preju-
dicial TO American shipping interests
rose simply from the fact that rival
corporations. both American and for
eign, now realize that they have been
beaten In the race for great oppor-
/ tunity.
( Continuing the attack against the
I agreement Kermit Roosevelt, who re-
signed as secretary of the Hartman
| corporation before the final agreement
was reached. went 10 Washington in
another effort TO persuade Admiral
Benson to reconsider his approval.
j Upon his return he said.
Il felt that without Gen. Goethals and
( Mr. Clegg American interests would have
I little hope for protection in the subse-
/ quent final contract What have since
seen has in my judgment proved con-
clusively the correctness OF my decision"
I Sensation Promised by CIegg.
From Alfred T. Clegg. vice-president
OF the Kerr Steamship Company. who
was intimately concerned IN the early
conferences between rhc Hartman cor
poration and the Hamburg American
+ Line. came promises that evidence Of a
sensational nature would soon be laid
before the United States Treasury De-
partment and Shipping Board officials In
connection with his charges that German
shipping interests are preparing TO use
the United States for the furthering sf
Germany's own maritime and CONNER
cial prestige and power.
J The full contract az given out by Mr..
] ftaiTlIlhfl, Uldkts pubic an important
provision hitherto not referred 10, and
that is "A clause which provides for re.
vision OF the agreement In the event OF
its failure 10 confer equal benefit upon
both parties.
/ This clause. which Mr. Hartman re-
/ fers TO as ''the key 10 the whole agree
ment." is as follows:
/ 1t Is agreed that IL II shall appear
at any time that a revision OF any
of the provisions OF this agreement
or any agreements which may be
! made from time TO time pursuant or
I supplemental hitherto is required un-
der the laws of the respective coun-
tries Omitted States of America and
Germany, or that the practical
operation and its provisions resulted
in an ineuuitable burden on either OF
the parties. owing to imperfections in
the form OF any such agreement or 20
special circumstances not within the
contemplation of the parties at the
time Of the execution. then a revision
of any such agreements will be made
for the purpose of making provisions
thereof conform to such laws on Of
securing relief from such inequitable
burden.
/, Clause on Rates From Germany.
Particular attention has been paid in
attacks upon the agreement to the fact
that II contains a provision that permits
the Hamburg American Line to deter
mine freight rates on vessels bound from
German ports to the United States. IL
I has been charged that this arrangement
I might act against the interests or Amer
ican shipping and that Il might afford
chance 10 force an entry for German
products I'm this country by putting
1 freight rates down TO a level that would
nern,it German goods TO be marketed
for less than American products.
| Mr. Hartman I'm his statement refers
I % tbia o,,estion and repudiates the suR-
restion that the provision might oper-
! ate to the prejudice of American snip
ming. He calls attention TO Section ~
which gives either party the right TO
,',,,hd-aw onv or ALI It's ships from any
particular freight service in which both
nartles are participating II the service
has boen operated at u loss to such
marty FOR the preceding SIX months
period.
THE clause IN question Is Section OF
,ha garerol agreement, there being also
an operating agreement and II reads az
follows:
The parties propose to inaugurate
freight services between Germany
and ports other than the United
agree upon the amount of tonnage
\ required for the trade In both direc-
tIons. The corporation treferring TO
the American Ship and Commerce
Corporation) as agent under the pro-
visions Of Section 6 hereof Is to de-
terminc the rates on eastbound traf-
nc and the line (referring to the
Hamburg American line) az agent
under the provisions OF Section 6
hereof is to determine the rates on
westbound traffic with due regard In
each case to the conditions a the
trade.
Mr.. Hartman declares furthermore
! that "the American company has signed
away no right or privilege which could
] bc reserved for an, American company.
1 The contract restricts no enterprise or
activity on the part OF American ship
ming: on the contrary. at one bound II
I nlaces an American shipping company
in posItlon 70 participate Immediately in
the most promising trade services In the