New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-09-07
CUNARD LINE REPLIES.
"BROKE NO PROMISE.
J. III. Brozon Says Dir. Schrab Has
Been Misinformed an Rate Var.

Vernon H. Brown, representative of the
Cunard Line in New York. in replying to the
accusations made against the line in the rate
war controversy by Gustav II. Schwab, of the
North German Lloyd Line, said yesterday that
his line had not precipitated the fight. and was
independent of all mergers and com mbnations in
the matter of fixing rates on its steamers
II his statement given out for publication on
Thursday Mr. Schwab contended that ever since
the steamship business established it was
customary for the various lines to charge a
high rate for and fast steamers and give
the so-called differentias to the slower steam
ers. He recalled instances of the course fol-
lowed by the Hamburg-American Line. the
North German Lloyd Line. the French Line and
the White Star Line, to show how these lines
had always lived up to the unwritten agree
ment to charge a higher minimum first cabin
rate their and fast steamers.
Mr.. Schwab referred, steamship men believed,
to the Lusftania the Cunard Lines fastest and
most beautifully appointed liner of $4,000 tons,
teeming with novelties and innovations that ap-
peal strongly to :he travelling public. The
Cunard Line had advertised her as the fastest
steamer af7oat. and notwithstanding all these
natural attractions that would certainly attract
a large patronage the minimum first cabin rate
was fixed at $115. BY placing such a low rate
Mr.. Schwab contended the company had de-
liberately destroyed the tacit understanding
among the lines regarding the rates on fast
steamers. He also accused the Cunard Line as
posing as the innocent victim of the other lines
in the present rate
The need of making rates that would enable
it to compete with the lines running to Channel
ports the argument of the Cunard Line yes
terday It said at the Cunard office that
for many years the travelling public had become
1~F-
and desire to get to Paris and London by
steamers touching at Continental and South
British ports was growing rapidly. In making
a reasonably low rate on the new Lustania
the Cunard Line felt justified means Of
competing with the White Star and American
lines. running 10 Southampton as terminal;
the Hamburg American and North German
Lloyd lines that make Southampton, Dover and
CherbourG ports Of call; the Atlantic Transport
Line, that runs TO London direct: the Red Star,
that goes to Antwerp direct. using Dover as a
port of call and the French Line that has a
home terminal at Havre.
The Cunard Lines present rate on the Lusi-
tania to Queenstown is S1l5. to London 1922 and
$136 TO Paris Mr.. Brown. OF the Cunard Line
said yesterday:
Mr. Schwab is a warm personal friend Of mine
and have infinite respect for him. but think
in this matter of rate reduction Of the cunard
Line he has been misinforned- We made no
change in our minimum rates until few days
ago when we were forced To do to meet the
similar reduction made by the White Star and
American lines service TO Southampton
The minimum rate. fixed. after due consld-
Grafton for the Lusitania. S115. against
S117 30 charged by the fast express steamships
of the North German Lloyd Line. This mini
mum for the Lusitania considered by us rs
materially higher than the North German
Lloyd's minimum when taking into considera-
tIon the geographical Disadvantages OF Liverpool
as compared with the Continental ports.
But in face of that the North German Lloyd
company has now reduced it's minimum for fast
steamships 10 $50, and II is UP TO the
Cunard Line TO follow not. as II thinks best"
II is generally believed In shipping circles that
the present rate war is in its infancy. and
that remarkably low figures will be reached be-
fore the controversy Is patched up 1t was
learned Yesterday that the White Star Line
duced the rate OF It's new steamer the AdriatiC,
from 500 TO 800 to meet the cut made by the
Hamb,rg-An1erican Line the steamers Amer
ika and Kaiserin Auguste Victoria. The White
Star Line also reduced the rate to the Mediter-
ranean on the steamers Republic. Canopic and
Romanic from $50 to $40. The minimum rate
on the White Star liner Cretic to the Mediter-
ranean was also reduced from SO to $40. Sec
ond ca bin fares on the White Stars Mediter-
ranean fleet have been reduced from So 30 to
$50 eastward and from $50 to 500 westward.