(d) It was therefore agreed that the compensation can be advanced and lowered by a majority of the lines representing at last 75 per cent of the shares as fixed in article 3.

(e) It was, however, understood that alterations of the compensation price can in no case be decided otherwise than to take effect at the beginning of the next week.

ARTICLE 7.

The compensation price fixed by article 6, as also the statistics relating to the transportation of steeragers, is in all cases based upon the number of persons or souls, so that children and infants always count as full passengers in the sense of this present contract.

Commentary to article 7.

The stipulation contained in this article was deemed necessary in view of the fact that if for children and infants certain fractions of the rate for adults were to be rackoned, the accounts would be unduly complicated.

ARTICLE 8.

(a) Provisional compensation accounts to be prepared monthly by the Secretary who has to direct the party or parties in excess of their share with regard to the amount of compensation to be paid by them. Such payments have to be effected within a fortnight after receipt of the secretary's notice.

(b) Final settlements will be made at the end of each calendar year on the basis of a compensation account prepared by the secretary comprising the entire year. Objections against this final account to be made within four weeks, failing which the accounts shall stand.

(c) Objections to the correctness of the accounts form no release from the obligation to effect the provisional settlement.

No comment needed.

Commentary to article 8.

ARTICLE 9.

Each line undertakes to arrange its services in such a manner that the number of steeragers which it actually carries corresponds as nearly as possible with the number allotted to it by this contract.

Commentary to article 9.

As already explained in the comment to article 6, the payment of the compensation moneys is not the object of this contract, but merely the means of deterring the lines from endeavoring to exceed their participation quota.

ARTICLE 10.

(a) For the purposes of the compilation of the compensation accounts all the lines have to furnish to the secretary every 7th, 15th, 23d, and last day of a month their statistics of the steeragers and also second-cabin passengers carried by them in the week ending with these respective dates and the destination of the steamers.

(b) A fine of £5 shall be imposed upon any line delaying the delivery of the statistics for more than three days.

(c) The secretary has to furnish to the lines weekly the statistics of the passengers carried, and monthly a statement showing the position of the lines versus each other, and not later than on the 15th of each month for the preceding month.

No comment needed.

Commentary to article 10.

ARTICLE 11.

(a) In case the results thus obtained show that any of the lines have exceeded their proportion or have remained below it, such line is entitled and in duty bound to adopt measures calculated to bring about a correct adjustment.

But before putting such measures into operation, the line is bound to inform the secretary of the measures proposed to be adopted.

(b) The other lines are entitled to await what result the measures taken produce, or in so far as they represent 75 per cent of the shares they may direct other or more forcible measures, which can only refer to rates to be set in motion. In the latter case the lines are bound to put such measures into force without delay and without demur.

Commentary to article 11.

(a) All parties were unanimously of the opinion that the adjustment is, whenever practicable, to be effected not by reducing the rates of one line but on the contrary by raising the rates of one or several of the lines.

(b) No line to be compelled to fix its gross rate per adult steerager at less than £5 or more than £8.

(c) It was expressly understood that there is to be no appeal against the decisions taken by such majority of 75 per cent, as such decisions will in all cases be solely in respect to questions of rate.

(d) Even in case the lines themselves do not propose the adoption of measures, a majority of the lines representing 75 per cent of the shares can immediately proceed to take measures, as for instance: They may direct that the rates shall be raised or reduced.

(e) In all cases under this contract where percentages have to be taken into consideration, it is understood that in questions on west-bound business the west-bound percentages, in questions on east-bound business the east-bound percentages, and in general questions the mean of the west and east bound percentages of each line shall apply.

ARTICLE 12.

No line has the right to alter its steerage and second-cabin rates without having previously informed the secretary.

Commentary to article 12.

No comment needed.

ARTICLE 13.

(a) Unless there is a second-class rate agreement, the lowest second-cabin rates of any line west bound must be at least £2, and east bound at least $10, higher than the highest normal third-class rates of the respective steamer. In case a continental line should carry third-class and steerage passengers, the basis for fixing its second-class rate shall be its steerage rate.

(b) The lowest prepaid cabin rate in America of any of the lines must be at least equal to the lowest cabin rate of the same line on this side.

Commentary to article 13.

(a) The word cabin is also here, as in article 2, understood to comprise both the first cabin and the second cabin.

(b) If a line has fixed and published its second-cabin tariff it can not be compelled to change this tariff during the current season, whatever changes in the steerage rates may occur. Each line shall indicate to the secretary when its seasons commence and end, and also indicate the rates.

(c) The rate of exchange with regard to cabin rates is fixed for dollars at 4 marks or 4 shillings.

ARTICLE 14.

(a) The lines undertake to pay out of the gross steerage rate a commission to their agents which must not exceed in Great Britain 6/- per adult to ordinary agents, or 9/- to general agents, or on the Continent not more than 15/- for a full steerager, or 12 kroners in Scandinavia or 17 Finnish marks in Finland.

(b) The maximum commission for second-cabin passengers per adult in Great Britain to be not more than 5 per cent, with a minimum of 9/- to orlinary agents, or 13/6 to general agents, and on the Continent a maximum of

6 per cent, but each line is entitled to grant a minimum of 15 marks on a single trip per adult.

Commentary to article 14.

In respect to the question as to who is to be considered as agent of a line, and more especially also whether the so-called town agents are comprised in the term of agent, it was unanimously decided that as agents in the sense and meaning of the contract only such agents are to be considered who are regularly appointed by a line. In the case of the British lines any agent appointed by their head agents at the ports shall be considered as a firmly engaged agent of a line.

ARTICLE 15.

The cash steerage rates and the American prepaid rates shall be established on the following equivalence:

(a) It was not thought necessary to make any stipulation in respect to the rate of commission to be paid to agents in America for prepaids, so long as the rates of commission on the other side are fixed by the continental conference and/ or the North Atlantic Conference, but it is agreed that in no case the subagents' commission shall exceed $2 or the head agents' commission $3, and the names of such head agents shall be scheduled with the secretary of the continental conference and/ or North Atlantic Conference in New York and with the secertary of the Atlantic Conference.

(b) It was agreed that with a view to regulate the question in respect to the European inland transportation in connection with the prepaid business, each line may issue a tariff containing not more than 300 stations, showing the cost of transportation from such stations to the port of embarkation. No commission shall be allowed on these European inland rates.

ARTICLE 16.

(a) The lines undertake to comply with article 8 of the "General Rules, third series, of the continental conference," which reads as follows:

"No circulars or publications shall be issued by any line reflecting upon or instituting comparisons with any conference line unfavorable to the latter, and no party hereto shall support any newspaper which may systematically attack any conference line."

(b) They further undertake to send to the secretary any printed matter and circulars sent to agents in relation to the steerage business, so far as such matters are not of purely internal nature.

Commentary to article 16.

(a) In view of the fact that the stipulations referred to in this article of the continental conference have stood the test of many years' practical working, it was decided not to alter anything with regard to such stipulations of the continental conference, but it was agreed that the words " support any newspaper are more especially understood to mean that no advertisements are to be given to such newspaper.

(b) It was furthermore decided that all the lines shall be responsible for their agents and employees or other representatives in this sense, that the lines are bound not only immediately to dismiss an agent, etc., who in respect to another line has disregarded the stipulations of article 16, but that all the lines are also bound to break off all and every direct or indirect business connection with such agent.

(c) An agent, etc., who has thus been dismissed must not be engaged by any of the other lines, nor are they allowed to have any business connection, directly or indirectly, with such person.

ARTICLE 17.

For the faithful performance of the conditions of this agreement, the parties deposit with the secretary a promissory note in the amount of £1,000 for each per cent proportion.

This note is not payable if it is accompanied by the award of an arbitrator, provided for in this agreement, or by the award of another arbitrator, agreed upon by the parties at difference.

No comment needed.

Commentary to article 17.

ARTICLE 18.

(a) The sum deposited shall be considered the amount of liquidated damages, and thus entirely forfeited if the line who made the deposit unduly withdraws from the present contract before its expiration or if the line resorts to actions which render the continuance of this present contract impossible, and which are, therefore, to be considered equivalent to a withdrawal from this present contract, as for instance:

(b) Refusal to pay compensation money, or failure to replenish the deposit in due time, or assisting directly or indirectly a new opposition line, or starting or assisting a line whereby the business as defined in article 1 would be seriously interfered with.

No comment needed.

Commentary to article 18.

ARTICLE 19.

In the event of a deposit being declared entirely forfeited the line or lines who have claims to compensation will, in the first instance, receive satisfaction out of the same pro rata of their claims. Any remaining surplus will be divided amongst all lines, excluding the line the deposit of which has been declared forfeited, proportionate to their participation quota.

No comment needed.

Commentary to article 19.

ARTICLE 20.

(a) Penalties in case of contravention against or infraction of any stipulations of this contract shall be fixed by the arbitrator, but in no case shall such penalties exceed the amount deposited by the party at fault.

(b) The amount of penalty to be in each case not less than £250 for each contravention or infraction, except as proveded for in article 10.

(c) In case of the contravention or infraction being made willfully and designedly, especially in case of any willful and intentionally incorrect statement or declaration in respect to statistics, the penalty shall not be less than £2,500.

(d) The sums accruing from penalties are to be divided amosgst the other lines in the same manner as provided for at the end of article 19.

(e) Unless the penalty be paid to the secretary within eight days after the line concerned has received the relative reward, the deposit will be drawn upon up to the amount of such penalty.

Commentary to article 20.

It was thought that a penalty of £2,500 for each case might in case of systematically incorrect statements amount to such an extravagant sum that it would be impossible to recover it, or that the deposit would be entirely exhausted thereby; hence this stipulation, that in such cases the penalty need not be applied to each case separately, but is fixed at £2,500 minimum, which implies that a higher amount can be fixed according to the gravity of the in

fraction, the number of cases involved, as well as the length of time during which the infractions and contraventions have been practiced.

ARTICLE 21.

In the event of a deposit having been dealt with the same must within 14 days after the day on which it has been so dealt with be replenished up to its original amount.

Commentary to article 21.

The replenishment of the deposit shall be effected by the lines without their having been called upon to effect such replenishment. The notes required to replenish the deposit are to be transmittd to the secretary in the same manner as stipulated in article 17. The secretary is bound forthwith to arrange for the notes so received being immediately deposited with a bank. As stipulated in article 18, the remainder is entirely forfeited if the deposit is not replenished in due time.

ARTICLE 22.

(a) Other lines can be admitted to the present contract, and the terms and conditions of the latter can be altered and new terms and conditions can be added thereto, but only by the unanimous vote of the lines unless otherwise provided for in this contract.

(b) All alterations and additions made in respect of this present contract, to be valid and binding upon the lines, parties to this present contract only when all the lines have given their written consent to such alterations and additions.

No comment needed.

Commentary to article 22.

ARTICLE 23.

(a) The execution and control of the fulfillment of the stipulations of the present contract are confided firstly to the secretary, secondly to the arbitrator.

(b) The secretary must be a person entirely and in every respect independent of any of the parties to this present contract. The secretary shall be appointed or dismissed by a majority of the lines representing 75 per cent of the shares. Mr. H. Peters at Jena is hereby appointed as secretary.

(c) Among his duties are: To receive the statistical statements, to examine the same as also the accounts, for which purpose the secretary shall have access to the passenger offices of the lines and can there examine all books, correspondence, etc., so far as he may deem it practicable; to communicate the statistics and accounts to all the lines concerned, and act as mediator in general in the transactions between the lines themselves, so far as such transactions appertain to matters relative to this contract: wherefore, the secretary has also to see that all lines receive regularly and simultaneously all necessary information; to control the steerage prices in accordance with article 11; to collect the payment of the penalties; to call the meetings of the lines according to article 25 and keep the minutes of these meetings; to effect the compensation accounts.

(d) It shall be the duty of the secretary to use every exertion to settle diffi culties amicably.

(e) The expenses of the secretary are to be paid by the lines in proportion to the mean of the percentages allotted to each, according to article 3, but the salary of the secretary shall be paid by the lines in equal parts.

(f) There is no objection to the British lines sending their statements and reports through the secretary of the North Atlantic Passenger Conference in Liverpool.

ARTICLE 24.

All parties mutually agree that any dispute or claims between any of them, or between any one or more of them, and the rest of them arising under this agreement, shall be settled by arbitration as follows;

(a) Arbitration proceedings, unless the parties in dispute agree otherwise, shall take place alternately in England and Germany; to commence with England.

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