The directors of the Hamburg-American Line have issued a circular
explaining their agreement with the Atlantic Ship- ping Combine. The German companies, already subsidised by their Government, in return for submitting to various restrictions are practically guaranteed another subsidy. Their• capital was four millions sterling apiece, and may now be taken at five, or ten millions altogether. As to one- quarter of that capital, the Combine takes whatever dividend may be earned, and in return pays 6 per cent, on the whole, an arrangement by which at the worst—i.e., if no dividend were earned at all—the Combine will have to pay £150,000 per annum. On the other hand, if the German com- panies earn more than 6 per cent., the Combine gains by the difference on two and a half millions. As against this concession, the German companies (1) are forbidden to increase their service to English ports or to call at Belgian ports on their North Atlantic trips; (2) are only permitted to establish services in new directions, including calls at British ports, on the understanding that the Combine may also estab- lish such services and claim one-third share in any German enterprise. Conversely, the Germans may claim the same share in new enterprises, including British ports, which may be started by the Combine. As the Times expresses it, the com- panies " retain their nationality, but they are commercially subjugated by the more powerful combination," the main idea of the agreement being to create a pooling arrangement in restraint of competition by the German lines beyond their present limits.
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