New-York tribune., 1902-02-01
OCEAN FREIGHTS RAISED
a GREENENT AMONG ENGLISH
COMPANIES.
ADVANCE ON GRAIN 90 PER CENT
FLOUR AND PROVISIONS ALSO
AFFECTED.

1, country and England had signed agreement
TO sustain certain minimum eastbound freight
rates on grain, flour and provisions, and that
it will go into effect to-day. These minimum
rates are ~ pence bushel for grain, I shillings
pence a ton for flour and 10 shillipgs long
ton Of 2.240 pounds of provisions. No freight
already landed will be affected by the agree
ment. The lines signing it. according TO L.
Bovine Sanderson. Of the Wilson Line. the
White Star the Cunard. the American. the Red
Star, the Leyland. the Atlantic Transport, the
National the Wilson. the Furness-Leyland, the
Lamport & Holt, the Philadelphia Manchester,
the Chesapeake and Ohio Steamship Company,
the Virginia Line and the Dominion Line. The
ports touched by these lines are Montreal, Port
land. Boston, New-York, Philadelphia. Balti-
more Newport News Norfolk and New Orleans
on this side and Liverpool, Manchester South
ampton. London and Hull, in England.
While Mr.. Sanderson did not mention the
Elder-Dempster, the Bristol City, which runs
from this port to Swansea, and the two Glasgow
lines. the Anchor and the Allan State, it is
probable that these lines have signed the agree
ment. as such an agreement would lack ad-
hesiveress without them. Mr.. Sanderson said
the only exception was the Philadelphia Trans
atlantic Line, operating between Philadelphia
and London
PAPERS SIGNED IN ENGLAND.
When asked if the papers were signed in this
country. Mr. Sanderson replied:
No; they We're signed in England. 1t has
been talked about there for long time"
Did the steamship men who came here on the
Celtic bring the papers with them?"
mo; their coming had nothing to do with the
agreement. 1 don't know what they did come
here for
The object of the combination is to maintain
freight rate that will insure a margin of profit.
For many months. owing TO the small amount
OF grain crossing toward Europe, freight rates
have been very low.
Grain being the cheapest cargo to handle. is
usually the which freight
based. When the demand for space for grain
is great, then rates go up every class of
freight When there is little moving, then the
rates go down.
The corn crop has been a failure this year.
and there has been little wheat moved to Eu-
rope One steamship man said yesterday that
he understood the reason to he that the farmers
holding back their supplies for better
prices, and European countries were buying
where they could get it cheaper. The three
items which the combination will make
effort to maintain a minimum rate the i'm
portant food. supplies which Americans fur
nish Europe in large quantities. The prevail
ing rate for them has been: Grain. l penny
q DuSnels hour, u SnllllHBS anu pence d lou,
and provisions. shings and pence The
rates OF increase are therefore 30 per cent
grain. about 20 per cent flour. and 33 Is
per cent on provisions This rate is said to be
higher than it has been before in year. The
steamship men say that only on this rate can
they make it pay to operate their steamers.
1t is more difficult to maintain ocean rate
than a railroad rate tramp steamers have
as much right to enter port for cargo as a
haG md dpSir m
do so for the sake Of cargo. they can cut
under the price. For this reason the expert
ment which the steamship lines are making will
be OF more than ordinary interest
NO LIMIT TO 1T.
Mr. Sanderson when asked if there was a
limit to the agreement. said: mo; any line
can withdraw upon giving due notice TO the
other lines. The agreement specifies. it is
understood. that no line shall accept these three
items of freight under the minimum rates men
toned 1t was described yesterday 'tenta-
tive agreement"
1t is believed that the agreement may have
a railroad end to it, although this was not
learned yesterday.
with such railroads as the Pennsylvania. the
Erie the Baltimore and Ohio and the Chesa-
peake and Ohio working in conjunction with the
steamship companies, giving through rates from
Chicago other inland centres to the ports of
England. the steamship companies which have
signed the agreement would have the advantage
in securing freight
While the steamship agents yesterday all de-
MED that they knew anything of plan to in
crease the minimum cabin passenger rates by a
similar method. including the Continental lines
il is believed that such a step Is being consid-
cred and also to arrange freight agreement
between the Continental lines similar to the one
which goes into effect to-day.
The immense tonnage which is controlled by
the lines in the combination may be imagined
when it is stated that the tonnage of the Ley
land Line, which would be engaged in this
vice, is 1I1,S0O: the American Line. 44,S1l: the
Red Star more than 100000; the White Star
132,S15: the Atlantic Transport Line. 15S al,
and the Cunard Line. 10000
Apparently the freight agreement is the basis
of all the cable dispatches which were received
here regarding the amalgamation of the White
Star with a number Of other lines
Herren Baln and Wiegand. of the Hamburg
American and North German Lloyd lines. Will
arrive here on the steamer Kaiser Wilhelm der
Crosse on February H. The object OF their
visit has not been made public but it may have
some connection with A Continental agreement
Emil L. Boas, OF the Hamburg American Line
said yesterday that he knew nothing of an
agreement beyond what he read in the papers.
SAYS 1T WILL HURT ONLY SPECTATORS
Ely Bernays. the grain exporter, said to a
Tribune reporter last evening:
This freight agreement of the shipping lines
is an eminently proper arrangement. The one
class of persons whom it will hit, and hit hard
are the grain spectators. Note the break of
the Chicago market to-day three-quarters of a
cent. The shipping lines all along the Atlantic
coast have been carrying large shipments of
grain for next to nothing since July. There
was nothing in 1t for the lines The rates have
often been less than penny a buShel. 1t pays
a vessel better in such a case to use water bal
last and forget the grain The arrange
ment VIII not lessen or restrict the shipments
of grain by one bushel, nor will the selling price
be affected European competition will see to
that.
who will be humbled. He has held the grain
trade sky high in prices to suit his own conven-
ence. 1t was remarked in the Prussian Diet only