The Washington herald., 1920-09-09
Makes Frank State
ment and Declares
Shipping Board has
Nothing to Conceal.
Believes England
Would Have Seized
a Similar Oppor-
tunity.
BY FREDERIC WILLIAM VILE.


Through the courtesy and frank
ness Of Admiral William S. Benson
chairman Of the United States
Shipping Board, it is possible today
to take the American public for the
first time behind the scenes of the
gigantic combination which the Har-
riman-Chandler banking interests
have just effected with the Ham
burg-American line. Maritime his
tory contains no record Of any ship
ping transaction of even approxI-
mate magnitude. 1t will one day
involve hundreds of millions of dol
lars. myriads Of ships, and carry
the American and German flags, vir-
tually in alliance, to every quarter
Of the globe.
I represented to Admiral Benson
that the forcibIe Intervention OF the
Treasury in 4 share transfer deal
which constitutes the base of the
Harriman-Chandler-German scheme
the seizure of $4,sOO,00O in cash by
the exCess-profits tax authorities
justlfes public curiosity to know
just exactly what the main scheme
is. told the admiral that the
shipping board, in sanctiOnins the
arrangement. was sanCtiOning a
partnership with a German concern
whose record in the United States
still smelled to heaven. 1 told him
]. 4
past was filing many Americans
with genuine doubts as to the wis
dom OF placing any confidence in
its future. I said that I knew the
German shipping world through
and through and was confident that
it had not sought an American alli-
anCe with any too altruistic interest
in the welfare Of the new United
States mercantile marine. Finally.
/ reminded Admiral Benson that.
after alt we are still "at war" with
Germany.
Lays Cards on Table.
The Shipping Board chairmau's
reply TO my observations took the
form Of laying all his cards on the
table. He said there was nothing
TO CONCEAL. In pursuance of that
q
teTday the entire correspondence,
documentary and otherwise. which
has passed between the Shipping
Board and the Hirriman-Cha
group during the past six months.
The papers laid before me included
copies of the Hartmann Chandler
German agreement. dated June 10.
but Admiral Benson did not feel at
liberty to authorize its textuaI re-
production. lie said that was ex-
ClUsively the prerOgatiye of the
contracting parties. Moreover, the
admiral AYERS that the summary of
the agreement which he made pub
lie on August II covers the ground
Of the agreement in every essen
tiaI respect.
What is entirely new is the fact
that the general counsel of the
Shipping Board. Robert \ Dean. in
a series Of analytical memoranda
written at three different periods
in July, pointed out what he con-
sidered to be vital objections to
the agreement. He warned the
board that these objections should
be most carefully considered before
the German agreement was sane
toned. The most vital of them
was to the effect that while on its
face the agreement purported to
be 4 "hfty-fifty" arrangement, in
which America and Germany shared
on absolutely equal terms. in real
ity the agreement seemed to him
DEAN to afford the Germans de-
cided and far-reaching advantages.
The general counsel of the board
went SO far as to argue that the
agreement violated the spirit OF
our new merchant marine act, be-
cause the act cOntemplates meas
ures designed to promote American
commerce only, while the Harri-
man-Chandler scheme COntemplates
promoting German commerce si-
multancouSly. and even. as Dean
thought. TO the discrimination OF
our own The general counsel was
strongly Of the opinion that the
Merchant Marine Committee Of the
House and the Commerce Commit
tee OF the Senate. which have juris-
diction over shipping matters.
should be consulted before the
boards sanction was given.
Vested With Full Power.
It happens that on March 12 of
this year the Shipping Board in
vited the Commerce Committee Of
the Senate to give its approval of
the boards intention to sanction a
deal between private American ship
ping interests and the Hamburg
American Line. The Senate COM
mittee was informed that the Ship
CONTINUED on PAGE TWO.