PREPARING THE WAY.

Press, Volume L, Issue 14987, 6 June 1914, Page 16

PREPARING THE WAY.

THE ATLANTIC SHIPPING CONVENTION.

(wniTTr.v ron "the press."'} (By Dr. Khri Sinueb, Chief Editor of the Commercial Department of the "Haniburgieche Korrespondenfc.") HAMBURG, April 1-1. Some months ago tne great ininternational shipping concerns reached a new and most significant stage with regard to their chief field of activity : the service between Europe and North America. The agreements that had been concluded between tho German, Dutch, Belgian, French, and English lines concorning this service wero cancelled. All endeavours to renew them on a different basis proving at first unsuccessful, free competition reappeared and lasted for somo months. This crisis in the organisation of the trans-Atlantic shipping concerns did not break out suddenly or fortuitously, but was the unavoidable consequence of important changes that had occurred during the last year. These changes had taken place as well with regard to the financial standing of the individual shipping concerns as in respect to the extension of their 'traffic. Thus the Hamburg- Amerika Line had progiessed more vigorously and more | lapioiy than other Continental companies, and again, ail tnese latter companies togatuer had piofked by a paH of tnat traific, which the Eng.ish companies had neglected to secure ior meniseives. .In «*mi any, tne ueaiand to revise tne agreements was 6t.etiuoa.siy opposed oy uiose tuat were caneu upon to nia&e concessions. Iho fiction, iiowever, mat tne existing agreements lepiesented tho nnai so«,.tion of all the problems, had at last to be "definitely abandoned. Accoiding to the conditions proposed by Herr A. Ballin, the general manager of the rianibmg- Amerika Jme, the German lines agreed to a convention, protecting their common interests and settling all the points in dispute. The former agreements, with tnoir hard and fast schedules, were replaced by an oiganisation sufficiently elastic to meet all the various contingencies of intercom se. 'lhe fight between tho Continental and trie £,nglish lines, however, is still going on. This is not astonishing, considering the complex nature of the problems involved and tho fact that ootn sides are desirous to arrive this time, not at a provisional, but at a definite solution of the differences that have divided them for so long. All parties concerned expect to bring the negotiations to a mutually r f>tis r actory completion, when they meet at Cologne en May Ist.

Once this convention fully in force, how will it affect international commerce? First of all, we may expect tnat the rates for passengers and for emigrants as well as The freight rates, which had in parts been lowered considerably during the fignt, will be increased again slowly, subject to tne conditions of the market. But the belief is quite erroneous that a closer organisation among tho great shipping concerns, engaged in the trans Atlantic service will constitute a monopoly, enabling them to dictate at will exorbitant rates and thus upsetting tho conditions of the export trade and the passenger service.

Traffic conditions on sea do not permit of a monopoly, becauso on sea there are no fixed roads, that, like railway-tracks, can be owned private'v. Even if all the shipping companies throughout the world amalgamated aid tried to lay down uniform rates, they could never keep pri?es at an exorbitant level. These tramp steamers, therefore, a-t as a sort of safety-valve on prices. The conventions agreed to among the eomretin" b\g lines may tend to prevent competition attaining proportions w'-irh weld endanger *h3 immense capital invested in these concerns.

| For this reason nothing has transpired pointing to a special satisfaction among the firms engaged in the export trade, with regard to the cancellius r f tbe shipping convention. All intelligent export merchants desire to see steady freight rates, guaranteeing equal conditions to all, and a regular and reliable service. This granted, they contentedly forego the hazardous chances of a special gain or loss, made possible through free competition among the shipping companies. In the United States these facts have been fully recognised not long ago by the report of the Parliamentary Commission nominated by Congress. This report admits that the shipping concerns, unlike industrial trusts, are not intended to provide a large share bonus for the founders and to keep prices at an artificial level, but that their aim is to prevent a disastrous and senseless war between gigantic organisations. The share capital of the shipping lines engaged in the North Atlantic service exceeds 25 millioas, and the agreements between them aro I to guarantee to each of these b'nes an appropriate and reasonable remuneration on their respective capital. Therefore, the reorganisation of the pools and of the other forms of con- I yentions, intended to protect common interests, can in no wise he regarded '

as aiming at an insufferable control over international maritime service, it is oruy x intenutrd to put tins service 011 a more rational foundation, cstauiiatiing a greater stability between tho capital invested, tne * economic and technical development, and tho pronts of tne companies concerned.

It must be regarded as a triumph I of the German oigamsing mind that it | has found and perfected the form., I permitting the realisation of such a balancing of inteiosts to the advantage of tho shipping concerns and of tile whole of the international expert trado. Tue pool conventions regulating and dividing, according to hxed rules, the North Atlantic ser.iee between the participating shipping lines, have been concluded uudcr the lead of the German companies. But to-day these old arrangements fail to satisfy the future exigencies as perceived by the preoccupied foresight of the leading personalities of the German shipping concerns. What they consider necessary is not only a division of the traffic according to the financial and technical standing or the different companies, but- also a mutual understanding, reeii'ntinc the sailing dates, the .snipbui'<7in<r*programmes. and other details of the serv'"p. Already ten years ago Herr A. Bnllin had nut forward requests which now find a twibility for realisation in the convention late'v passed h-tw-on t>- N-rrloVnts-her L'ovd and Hambnrc Amerika Line for- the protection of their common internet Sb on convention lea* to an international agreement j t wollM „,„„„ the f many nnll, ons annnaflv. *

T-. f-K will be found a wide fWd for earnest e«oWonr* to w-oiilntP r|. P mnritimo traffic of tho wiiolo world on moro rational lines