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sts, all partners having previously agreed upon certain principles as to the distribution of the common profits. In other words, it is a community of interests concluded upon the basis of dividing the profits realized in a certain ratio. I have been unable to discover when and wher

ally opposed to each other. Whereas the North German Lloyd insisted on the right to lower its rates, the Red Star Line claimed that these rates should be raised, so that it might obtain a better differential rate for itself. A reconciliation of these mutually contradictory views, the memorandum went on to say, appeared to be impossible, unless all parties agreed upon an understanding which wo

cen

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Line

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American

lso be taken into account in laying down the principles which were to govern the distribution of the

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an Lloyd 2

oyd (Baltimore

hrt 199,

ine 42,

Line 149,

rican Line

onnage

s of percentage figures

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, and so on. Uniform passage rates and uniform rates of commission would have to be agreed upon. To those lines which, like the North German Lloyd, maintained a service which was run by fast steamers exclusively, would have to be conceded the right to charge in their separate accounts passage money up to 10 marks in excess of the normal rates, seeing

definite period of time, and (2) the possibility of further grading these percentages by taking into account the amount of tonnage which each line placed at the disposal of the joint undertaking. Thi

steerage accommodation through the addition to its service of the three big boats of the Imperator class, it demanded a corresponding increase of its percentage figure, and, when this claim fell through owing to the opposition of the North German Lloyd, it gave formal notice of its withdrawal from the pool. Precautions taken to counteract this led to negotiations which had to be di

was he who, at a moment when the negotiations for establishing a pool had reached a critical stage, appeared on the scene with a clearly-defined proposal, so that he, with justice,

s plan so obviously right that, in order not to let it slip my memory, I jotted down a note concerning it on my bedside table. Next morning, when Ballin, Reuchlin (of the Holland American Line), Strasser (of the Red Star Line), and myself met again in the smoking-room of the Hotel du Nord, I told them of my inspiration, and my plan was looked upon by them with so much favour that Ballin said to me: 'Well now, Peters, you have discovered the philosopher's stone.' We then left, previously agreeing amongst ourselves that we would think the matter over at our leisure, and that we should refrain from taking any steps leading to a conflict, at least for the time being. On my return to Bremen I went straight to Lohmann (who was director general of the Lloyd at that time), but he immediately threw a wet blanket over my enthusiasm. His object

, people had become so doubtful as to the wisdom of what they had done that a clause was added to the effect that it could be cancelled after the first six months provided a fortnight's notice was given by a

nfirmed by the minutes of the Colo

n 1892 was subscribed to by the Continental lines alone, with the exception of the French line. In contrast

sociation, the backbone of the later and greater

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an Lloyd 4

luding the Union

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per cent. of the tonnage (expressed in gross registered tons) which any line should possess at any

r more than twenty years, the centre of an international organization with which few, if any, other places could vie in importance, especially since the four lines which had just concluded the original pool were joined, in course of time, by the British lines, the French line, the Austrian line, and some Scandinavian

ses. Cologne was the city at which the establishment of the pool was decided upon, and there all the important meetings that became necessary in course of time were held. The chairman of the Cologne Association of Solicitors was nominated president of the arbitration court, but later on this office devolved on President Hansen, a member of the Supreme Court for the Hanseatic cities, who filled his post for a long term of years-surely a proof o

details. His wonderful memory enabled him, after a lapse of more than twenty years, to recall every phase in the history of the pool, so that he acquired an unrivalled mastery in the conduct of pool conferences. This is abundantly borne out by the fact that in 1908, when negotiations were started in London for t

back upon a measure which he had already once employed in 1886. His object was to make the British lines more favourably inclined towards an understanding, and to this end he attacked them once more in the Scandinavian business. The actual occasion which led to the conflict was that the British lines, owing to differences of opinion among themselves, had given notice of withdrawal from the Hamburg agreement and from the Hamburg clearing house. This gave the Pack

es ready to come to an understanding with the Continental lines on condition that they were granted 7 per cent. of the Con

of trouble, led to a preliminary understanding with them. A letter which Ballin received from an English friend in January, 1894, shows how difficult it was to make the British come round to the idea of a pool. In this letter it was said that the time was not ripe then for successfully persuading the British lines to join any pool or any other form of understanding whi

e Continental lines were assisted by the American Line, which had sailings from British ports, and with the management of which Ballin had been on very friendly terms ever since the time when he, as the owner of the firm of Morris a

only be described as exceedingly unfavourable, considering that the huge working expenses connected with that kind of business had to be taken into account. Nevertheless, this traffic, which had reached a total of more than 200,000 pas

a view to extending the period of their duration, and these proceedings, after a time, led to a successful conclusion, but in June, Ballin again presiding, the desired understanding was reached. A few weeks later an agreement concerning the sec

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an Lloyd 4

ahrt 30

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ep forward, although the omission of the tonnage cl

atlantic lines was the establishment of the so-called Morgan Trust and the con