The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-04-09
WHEAT FOR ORIENT
JAMES j. HILL DISCUSSES A NEW
PROBLEM OF TRAFFIC AND
TARIFF.
LASTING RESULTS AT STAKE.
WHOLE COAST YIELD MAY BE
TAKEN OUT OF EUROPEAN
COMPETITION.
QUESTION ENTIRELY ONE OF COST.
IL Profitable Cargoes for Return
Voyages Can Be Found, the
Problem Is Solved

WASHINGTON. April S.-James j.
HILL president of the Great Northern
railroad, who is also largely interested
in transportation to the Orient, has
written a letter to a Western senator
in which he points out the possibilities
Of trade in China and Japan, and sug-
gests that the tariff duties be so ad-
justed as not to prevent or cut off
trade with the countries across the Pa
cific. He says
THE Asiatic trade Is of the greatest
Importance to this country, and partic-
ularly to such portions Of it as are in
terested in raising wheat. A year ago
last fall wheat sold from Is to % cents
per buShel in the Palouse country,
south Of Spokane Falls, and this year
1t has sold for from Go to 70 cents
About three years ago, sent an agent
to China and Japan to investigate the
country and see what steps could be
taken to introduce the general use Of
wheat flour in those countries, as
against their own rice, and found that
it was simply matter Of price.
Il then took up the consideration OF
| building large steamers for that trade,
designed to carry cargoes of flour or
grain at low rates. I found we could
build the ships, but that owing to the
sailors union, fixing the wages of
sailors at $50 a month and engineers
| and other ship employees at about twice
| the wages paid by European steamers,
| It would be impossible for us to COM
| pete with the English, German, Italian
| and Scandinavian ships already on the
Pacific ocean.
After the war with China, the Japa-
nese appropriated a large amount OF
their war indemnity for a subsidy to
their merchant marine, and we opened
negotiations with the General Steam
ship company Of Japan, which is owned
| by the leading men of the empire. We
! found their subsidy was about equal
| to the cost of their coal and the wages
of their sailors. They pay their sailors
S. month, Mexican, or $3.50 in gold,
enabling them to hire twelve good sail
ors for the wages Of one American
sailor. After protracted and difficult
negotiations we concluded a contract
with them for line of steamers be-
tween Chinese and Japanese ports and
Seattle, on condition that they would
L
Asiatic ports at So per ton, as against
from 81 to SO per ton, formerly charged
from west coast parts in the United
States. This low rate fixed the rate for
all other lines between the Pacific coast
and Asia, and has resulted in carrying
out about 28,OOO,0OO bushels or its
| equivalent In flour. from the last crop.
There is left, L understand, about 50,-
100000 bushels to be moved between
now and the next harvest.
'"Thus you will see, we have been
able to find new mouths which have
never before used wheat bread, to take
the entire California, Oregon and Wash
ingtOn wheat crop out of the European
markets. This will reduce the amount
going to Europe about 20 per cent, and
in bushels about 30,0OO,O0O, three times
the quantity shipped to Europe from
the Argentine republic during the past
crop year The prices Of wheat this
year, as compared with last, are about
20 to Is per cent higher, and 1 think 1t
may be said that from Is to Is cents OF
thise rise is clearly due to the with
drawal of all the Pacific wheat from
the European markets.
, II see in the market reports, a tele-
gram that European ships are loading
with barley, rye and merchandise, from
San Francisco to Europe, after waiting
four months for cargoes Of wheat and
, that no more wheat will go to Europe
from the Pacific coast The only way
we could bring about this great reduc-
ton in the cost Of transportation OF
flour to Asia was by diverting the tea
= - l.. 1T
tofore gone mainly on English ships
from Asia to New York, and bringing
these commodities to the Pacific coas
by low rate of transportation inland
by rail to distribute the commoditie:
to points between Minnesota and New
York
Il have given you the details so tina
: you will understand the situation, anC
be able to see that, unless these ship
l can bring their many cargoes Of mer
4 chandise to the Pacific ports, at rate
e that will compensate them for the traf
+ fic, the business must go as heretofore
to New York, and the rates on flour t.
T Asiatic ports will be again at the oil
n figure or an advance of about so cent
). a barrel, which would, in my judg
5 ment destroy the business that ha
3 just begun to be built up with tina
II country. The province Of Annoy alone
e which is near the coast, contains owe
n 80 900, 900 people; and at twenty pound
e Of -four per capita per annum, wouI
e e consume the product Of 40,OO0,0O bush
els Of wheat. The large districts o
Tien-Tsin and Shanghai, both easil
accessible from the sea, would cor
sumo about as much more as soon a
{ the trade can be fully opened 1t
not outside the range of possibility tina
ID we could ship wheat from Devils LAX
II to the Pacific coast for this trade. w
h certainly could, at SO cents a busht
cost for the wheat at DEVILS Lake @
). points west, as long as the deman
g for -four continues to grow as it ha
= for the past six months"
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