The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1904-03-04
SHIPPING RATE
TO HONOLULU

| Samuel SeWdll Oh the IrIn Oh SSWdil
& Co. who was here a few months ago
on visit gives some interesting in
| formation relative to his experience in
| seeking Trans-Pacific business, during
| the hearing on the coastwise navi-
| cation laws in the Senate.
Mr.. SewalI made this statement, adj
hitting that the proposed law could in
crease freight rates from Honolulu:
1 submit that neither the War De-
partment nor any bureau in that De-
partment is warranted in holding up
great industry, the American ship
building and shipowning industry with
all which that implies, for the sake of
saving a few dollars ton on 6.O7S tons
of general merchandise sent from New
York to the Philippines, or several
times that amount.
While in Tacoma last summer saw
a British tramp under charter to the
War Department loading lumber for the
Philippines, and within view were sew
eral American ships laid up at anchor
with no business obtainabIe which
would pay their operating expenses.
When in Honolulu last summer found
that much of the coal coming there
for the use of our Navy Department
came by foreign vessels, and, worst of
all, French subsidized vessels, the total
of whose operating expenses is paid by
the French Government, so that what
ever freight they get is clear gain to
their owners.
We are receiving coal for our Navy
Department through such a channel in
Honolulu. My ships are seeking that
business. 1 am offering tonnage to-
the Bureau of Equipment of the Navy
Department; offered them tonnage on
ly the other day when they wanted a
ship for Yokohama. They wanted one
for the Philippines, too, and they
wanted one for Honolulu not long ago.
1 offered them a ship at $6.25 to carry
in the vicinity of 5000 tons of coal from
Norfolk to Honolulu, and 1 think I
made the same rate to Yokohama. My
ship was turned down; $6.25 is exactly
the rate 1 am receiving on coal. Two
cargoes are on the way today from
Baltimore to San Francisco. 1t is paid
by San Francisco merchants-that is
the rate paid-and it is the market rate
in that trade; there is no eXtortion.
My ships were turned down because
our Navy Department could obtain for
eign ships at a lower price.
Senator Lodge, chairman of the COM
mittee, asked how much lower the
| price was. Mr.. Sewall said it was
| little over So ton. The examination
| continued:
Senator Burrows-And your rate was
1925?
Mr.. Sewall-Yes sir.
Senator Hale-You had no bounty on
your ships?
Mr. Sewall-I had no bounty And
that is the way it is; we are unable to
| compete with the foreign ships After
| lost that freight from the Bureau of
Equipment / was seeking further en-
ployment for the same ship and the
only way in which L could get her to
| the Pacific was by taking case oil from
the Standard Oil Company for Shang-
hal. They offered me Il cents a case.
1 demurred at that price We used TO
get 40 cents. They said: We'll, it is
| that or nothing. French ships are of
fering to leave San Francisco in ballast
and come around 5000 miles in ballast.
| and accept that rate on case oil, And
| as matter of fact, two of them have
| been chartered and are on the way.
seventeen cents won't pay the expenses
| of running the ship. The only reason
we take it is to get the ship to the
Pacific and bring something home. But
| the French ships take it,
Senator Hale-Because they have a
bounty?
aIr. Sewall-Yes, sir; which pays their
| running expenses, and the II cents is
practically clear profit.
Mr. SewalI added that such conditions
were certainly not encouraging TO the
shipping industry in this country.