New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-17
U. S. to Reopen
Trade Routes
WI it'll Germany
Shipping Board Favors Con-
tract for Deals Between
American Company and
Owners Of Teuton Vessels
Provision Made for War
Hamburg Line Interested
in Agreement; Craft Pro-
vided for New Service

From Tho 7ribunc's WASHINGTON Bureau
WASHINGTON, Aug 16.-Reopening
Of some Of the trade routes formerly
operated by the Hamburg American in
terests was approved to-day by the
Shipping Board and details of a new
arrangement by which the American
Ship and Commerce Corporation will
deal with the German shipowners were
made public by the board.
A contract has been drawn up be-
tween the American company and the
Hamburg American Line officials. The
official approval Of the Shipping Board
has been given to the contract. The
agreement, the Shipping Board an
nouncement said, carried adequate
safeguards to American interests in
volved
The execution of the agreement fol-
lowed an extensive investigation on
the part of the Shipping Board by W.
G. Sickel, former representative of the
Hamburg American interests in this
country. This was supplemented by
information furnished by DR.. Wilhelm
Cuno, director general of the Hamburg
American Line, who came to this coun-
try for conferences. These negotla-
tions resulted in the German officials
concluding contract with the Amerl-
can company.
Shipping Board Agreement
The agreement, which to-day re-
ceived the approval and sanction Of the
Shipping Board, is in two parts, the
first covering the principles of the
arrangement and the second dealing
with the method of carrying it out.
The general agreement covers the es-
tablishment of freight and passenger
services between the United States and
Germany with intermediate ports of
call, and between Germany and ports
of the world other than the United
States.
In summarizing the agreement, the
Shipping Board announcement said:
"The American Ship and Commerce
Corporation and its subsidiaries shall
act as agents for the Hamburg Ameri-
can Line in United States ports and
the Hamburg American Line as agent
for the American Ship and Commerce
Corporation in German ports, but each
party may establish its own office IN
the country of the other to supervise
the activities therein.
Each company may appoint its own
agents and establish Offices in coun-
tries outside of the United States or
Germany
"The port and office organizations
and pier facilities Of each are put at
the disposal of the services.
THE American Ship and Commerce
Corporation may transfer for eXecu-
ton to any other United States com
pany any service, and the Hamburg
American Line may transfer for exc
cution to other German companies any
service, but the two parties remain
responsible for carrying out such
service. Provision is made for ter
minaton in the event of future war
between the United States and Germany
and for revision in event the laws of
either country should so require. Pro
vision is made for revision also in the
event that the operations result in in
justice to either party.
"Provision is made for settlement
of any dispute by arbitration. The
term of the agreement is for twenty
years, but may be extended If desired
The operating agreement covers the
arrangements for the establishing of
passenger service between the United
States and German ports.
THE American Ship and Commerce
Corporation fixes rates on eastbound
traffic and the Hamburg American Line
on westbound traffic.
War Clause in Agreement
provision is made for putting at
the disposition of either party the port
and wharfage facilities of each and for
giving wharfage rates at prevailing
rates.
"The war clause of the general
agreement is elaborated to cover the
contingency of war between either the
United States and other powers than
Germany or Germany and other powers
than the United States"
Commenting on the new arrange
ment, the Shipping Board statement
said:
There is no German money in the
American end Of the business in any
place, nor is there any agreement ex-
pressed or implied for German invest
ment in any of the American COM
panies.
ITO begin to carry out the passen-
ger arrangements the American Ship
and Commerce Corporation has just
purchased from the Shipping Board
the steamer DeKalb and has let
contract for reconditioning her to
carry third class passengers and
freight.
instructions have also been given
for the conversion into third class pas
senger ships of the two new thirteen
knot ships now building by the Mer-
chant Shipbuilding Corporation. All
these ships should be ready for service
early in 1921.
"Plans are being made for new pas
senger ships to carry first, second and
third class passengers.
"R. Fl. M. Robinson, vice president
of the American Ship and Commerce
Corporation and president of the Mc,.-
chant Shipbuilding Corporation, VIII
probably visit Germany shortly in con-