The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1904-03-04

SHIPPING RATE
TO HONOLULU

Samuel Sewall of the firm of Sewall
T. co. who was here a few months ago
nm a visit gives some interesting in
formation relative to his experience in
y.eking TRANSIT Pacific business, during
the hearing on the coastwise navi-
cation laws in the Senate.
MIR. Sewall made this statement ad-
hitting that the proposed law could in
crease freight rates from Honolulu;
submit that neither the War De-
aartueut nor any bureau in that De-
,artment is warranted in holding up
A great industry, the American ship
building and shipowning industry, with
all which that implies, for the sake of
saving few dollars a ton on 6,O7S tons
If general merchandise sent from New
York to the Philippines, or several
Zines that amount.
While in Tacoma last summer | saw
4 British tramp under charter to the
Var Department loading lumber for the
Philippines, and within view were sew
syal American ships laid up at anchor
yith no business obtainable which
would pay their operating expenses.
G-han in Honolulu last summer / found
that much of the coal coming there
Sor the use of our Navy Department
aame by foreign vessels, and, worst OF
Il. l. Ia tsNl
If whose operating expenses is paid by
the French Government, so that what
fs,.r 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. / am Offering tonnage to
the Bureau of Equipment of the Navy
Department / offered them tonnage on
" the other day when they wanted
ship for Yokohama. They wanted one
5br the Philippines, too, and they
wanted one for Honolulu not long ago.
| offered them ship at $685. to carry
IN the vicinity of 5000 tons of coal from
Norfolk to Honolulu, and | think l
made the same rate to Yokohama. My
the rate | am receiving on coal. Two
sargoes are on the way today from
Baltimore to San Francisco. 1t is paid
by San Francisco merchants-that is
rhe rate paid-and 1t is the market rate
IN that trade; there is no eXtortion.
Ny ships We're turned down because
our Navy Department could obtain for
tign ships at a lower price.
Senator Lodge, chairman of the COM
mittse. asked how much lower the
price was. Mr. Sewall said it was a
little over s. a ton. The examination
continued:
Senator Burrows-And your rate was
t625?
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 l was seeking further en-
9Ioyment for the same ship, and the
only way in which | could get her TO
the Pacific was by taking case oil from
The Standard Oil Company for Shang-
hai. They offered me II 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 $1,000 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 n
bounty?
Mr.. Sewall-Yes, sir; which pays their
running expenses, and the II cents il
practically clear profit.
Mr.. Sewall added that such conditions
were certainly not encouraging to the
shipping industry in this country.