The Birmingham age-herald., 1920-08-17
BOARD SANCTIONS J. s. VESSELS ON
 GERMAN ROUTES
No German Money in American End of Busi- ness, Says Benson in
 Approving
By Associated Press

has the sanction and support of the shipping board. Chairman Benson an-
 nounced tonight. in making public CO., operative working agreements between the American Ship & Commerce Cor poration of New York and the Ham Burg American line of Germany In his summary of the agreement the chairman declared the shipping board 1 would Hook forward to seeing one of its constructive plans carried out" There is no German money in the | American end of the business in any l place nor is there any agreement ex- pressed or implied for German invest ment," he added. The arrangement is | for twenty years and consists, the chairman said, of a general agreement covering the principles to be followed by the two concerns and an operating agreement covering the methods of carrying out the plan. In general 1t provides that each party may partic- | ipate with an equal amount of tonnage in such passenger and freight services as shall be established. which will in 1 clude service between the United States and Germany and Germany and ports of the world other than United 1 States. Pier facilities, port and office organizations of both companies are | placed at the disposal of the service. ACT AS AGENTS
 The American Ship & Commerce Cor | poration is to act as agents Tor the l Ham burg American line in United States ports and the German company as agents for the American company 1 in German ports, but each company may establish offices in the country of the other to supervise the activities Ear rb n annniuf it's own agents outside of Germany and the United States.
 The Hamburg American line may transfer any service to any other Ger man company for execution and the American Corporation may transfer service to any American company, but
 both parties remain responsible for the carrying out of the services.
 In the event of war between the United States and Germany, provision is made for term ina tion of the agree ment and also to cover the contingency of war between the United States and other powers than Germany. Settle ment of disputes between the two com panies by arbitration is provided for, as is revision of the contract in the event the laws of either country should require.
 Passenger service between the United | States and Germany is to be estab- l lished within one year. the American 1 corporation agreeing to supply pas | senger ships not exceeding 10000 gross i tons, to which the Hamburg American 1 line cannot add unless it is agreed that l the business warrants an addition. | In that case the Germany company
 may add ships until it has 50 per cent
 of the vessels in the service.
 | In the design and construction of passenger ships the Hamburg American i line will give the American corpora | tion all the technical knowledge and i experience at it's disposal.
 MAY SUPPLY TONNAGE
 l Each party may supply half the tom mage for freight service between the 1 United States and Germany, but if the Hamburg American line has not the tonnage for it's half the American com pany may supply it. Rates on east bound traffic are to be fixed by the
 American Ship and Commerce Corpora tion. and on westbound traffic by the Hamburg American line.
 Freight services between Germany and countries other than the United States are to be taken up independ- : ently, the Hamburg American line to propose each service which the Ameri- can Ship and Commerce Corporation may accept or not, as it chooses. IT the American concern chooses to enter a division service, each party may put in one half of the tonnage required. The American Ship and Commerce Cor poration may suggest that any service be proposed, if the prohibition Is not made by the Hamburg American line. Because certain ships, amounting to about ,000 tons were ordered prior 10 the agreement the Hamburg Ameri- right within one years notice, to insert these vessels when ready in the freight service es- tablished within it's proportion of 30 per cent
 Withdrawal of tonnage in the event of overtonnaging is provided for, and for the withdrawal of tonnage because of operation at loss or at no proht.
 Provision is also made for the With drawal of either party from a servlce
 not to it's interest but the party with :
 drawing may not re-enter if the other
 party carries the burden of building up
 the service. If both parties withdraw, the service may be re- -esta blished as originally.
 DEKALB PURCHASED
 ITO begin to carry out the passen-
 ger arrangements" Chairman Benson said, the American Ship and Com merce Corporation has just purchased from the shipping board the steamer DeKalb and has let contract for re conditioning her to carry thiru-class passengers and freight.
 "Instructions have also been given for the conversion into third class pas sengers ships of the two new thirteen knot ships now building by the Mer- chant Shipbuilding Corporation. All these ships should be ready for service 1 early in 1921"
 <, Plans are being made for the construc- , tion of other passenger ships by the l American Ship and Commerce Corpora | tion, the chairman said, and R. Fl. Rob- 1 nson, vice president of the company, la i to visit Germany shortly in connection | with their design.
 The shipping board will not look for ward to seeing one of it's constructive plans carried out by an American group having inatiate resource and courage ] who plan to make American shipping their lifes work, and have, expressed 1 their desire and intention toN help the upbuilding of these trades" Chairman Benson said, The Jones act just passed | puts it in the power of the shippina board to be real assistance in doing this
 and the people may look forward to 8 | logical sound and constructive growth of this branch of the American mer-
 | chant marine.
 | Reviewing the negotiations leading ur
 to the agreement, the chairman said
 that more than a year ago the shipping
 board concluded that the pre-war facil-
 1 ties experience and good will of ths
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