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Tycoon Bernstein lives in Hamburg with his wife and two children, plays golf often and well, visits the U. S. every spring and autumn for a month. Transatlantic competitors watched his maritime growth with envy, did not really begin to worry until three years ago when he decided to go into the passenger business. From his 14 ships, all named after Saxon castles, he chose three of the biggest and best, had them rebuilt as combined passenger & automobile transports in the New York-Antwerp trade, with stops at Southampton and Havre. The 16,000-ton Königstein was equipped to carry 300 passengers, the 14,000-ton Ilsenstein and Gerolstein 180 each. All three could still carry 450 cars apiece as against the 600 they carried as freighters. When tourists found they could go to Europe and back for a flat rate of $150, take their cars along for $120, they pack-jammed the Bernstein ships.
Tycoon Bernstein splashed full-page advertisements in the travel sections of newspapers, took additional pages in the Sunday magazine sections, book review sections, shiny-paper magazines. His ships boasted neither luxury nor speed—all are ten-day boats—but they did offer cheap, clean, comfortable accommodations, efficient service, friendly informality. Food was simple but wholesome and abundant, with German dishes a specialty. All cabins were amidships, all had hot & cold running water, nearly all were outside, none had more than two beds. Just as on big ships, passengers could dance, play deck games, swim in a canvas pool, lounge in the smoking-room, bar, library, veranda cafe.
Last week Arnold Bernstein finally got ashore from the Tel Aviv, hopped a Paris express, turned up at the North Atlantic Passenger Conference. There the No. 1 independent was welcomed with open arms into the tight little autocracy which rules the North Atlantic. After the doors of the conference opened, it was announced that Member-elect Bernstein had agreed to up his rates $2.50 one-way, $5 round-trip for the Königstein, Ilsenstein and Gerolstein, charge a minimum of $115 one-way, $207 round-trip for his 16.000-ton German Red Star Liners Pennland and Westernland.*
But Owner Bernstein was soon to receive a rude jolt. The North Atlantic Freight Conference, meeting in Manhattan, refused him membership on the ground that he had violated an agreement by buying Red Star Line and thus entering the general cargo field. With threats of a freight rate war on the horizon, bewildered Arnold Bernstein cabled a protest to the U. S. Shipping Board Bureau, felt sure the new "misunderstanding" would be straightened out, planned to travel to the U. S. next month.
*Making her first trip from Antwerp under Bernstein ownership last week, the Pennland arrived at Hoboken without a single passenger aboard. Pending an agreement with the Conference, the line had refused to sell reservations, took a loss rather than start a rate war.