The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1904-07-01
Probabilities Are Shipowners
Union Win Not Long Con.
tinue in Existence.
SUPPLY AND DEMAND RULE
Upon Conditions win Depend
Rates for Transportation
of Grain and Life of
Recent Union.

Many OF the exporters are OF the
opinion that the shlnowners' association
or union. which was recently formed
for the purpose of securing higher
freight rates. is destined to prove a
short-llved affair. The minimum rate
for carrying grain from Portland has
been fixed by the union at 2Ts Cd. and
II Is said that fully so per cent of the
British. German and French shipowners
have agreed to pay penalty OF si.s5
n ton on the carrying capacity OF any
vessel they own which is chartered at
a less figure than the minimum rate.
This would make the penalty which
would have to be forfeited amount to
about $4,000.
One OF the prominent exporters de-
clares that the union cannot hold to-
gether. for the reason that the matter
of keeping ships moving is like any
other business-it depends altogether
upon the laws OF supply and demand II
there is good demand for tonnage
and the other conditions seem to justify
II, he says that fair rates win be paid.
but otherwise low rates are sure TO rule.
Moreover, he asserts that in order TO
pay the rate asked by the union the
price OF wheat will have TO come down
TO a parity with the Liverpool market.
AS long as the price remains at its
present quotation he contends that the
exporters cannot buy It and pay high
freight rates without experiencing
heavy losses. He does not believe that
they are at the present time. Hence he
argues that they are In position to
put their grain in warehouses and
keep it there until such time as they
can get the price they ask.
In addition to this the exporters ap-
pear TO be confident that the French
shipowners who have Joined the COM
bine win soon withdraw II II should be-
come evident to them on the start that
their vessels would have to be tied up
for any great length Of time. Rather
than lose the bounty which their gov
ernment allows them for every mile
their ships cover II is the impression Of
the exporters that the Frenchmen viii
soon conclude to take whatever they
can get.
But 1t is evident that both sides are
going to make big fight, and some are
of the opinion that II is going TO be the
means of paralyzlng shipping for a time
1n the Pacific coast. Captain Garrioch,
Of the British snip Rajore
now in the harbor, says he has no
loubt that the shipowners will be able
% secure their demands. He explains
hat there is fair margin Of profit In a
ate of 27s Cd, and the last year the
owners have been losing money. II
he members Of the union all hold to-
,ether, and he believes they Will, he
leclares that they will win in a short
ime. The captain states that the grain
will be here to move, and the exporters
will be forced to accede to their terms.
With so per cent of the owners in the
lnion he says that they can control
he situation.
1t is thought by some that the ex-
,orters will endeavor to break the COM
line by picking up an occasional tramp
teamer. The owners are confident that
here is not enough of this kind Of tom
iage available to make any perceptible
Inference in the situation one way or
he other. Besides a steamer cannot
,e chartered under ordinary circum-
tances at as low rate as a sailing
essel.