The Washington times., 1913-01-07
SHIPPING TRUST IS
PLACED ON GRILL
IN HOUSE INQUIRY
Giant Combine Is Charged
With Rebating and Mo-
nopoly of Traffic.
cContirred from First PageJ


Brazilian coast. 1t established its New
York service as a sort of side issue,
because il was so difficult to get gooo
facilities from the European companies
that make that port. The Brazliian
company. on the other hand, maintains
is not necessary; the conference INES
attend to that.
Inst how American business interests
are treated, in this situation, Is SHOWN
by a statement made by Mr. Slechta To-
day He says:
raised in Brazil comes to the United
States: and coffee is the one great item
of shipping from Brazil. The conference
lines run to both Europe and the United
States; the Brazilian federal line, only
to the United States. The federal line
would take coffee to New York at 20
cents per bag: the conference lines
charge 591k cents, with rebate OF lO
per cent for the same service. Yet the
conference lines, at the double rate, get
most of the business.
American Consumers Pay.
why? Because they go to both New
York and the European ports. Now,
the big coffee shippers generally do
business at both New York and the
European centers. They must. have
shipping facilities to both. If one OF
these concerns offends the conference
lines by giving its New YORK business
of being denied any space at all, In the
conference vessels, for its European busi-
ness That compels them to give the
tonnage TO the conference boats, and the
American coffee drinkers, Of course, pay
for that 100 per cent difference In
freight.
ference lines pay is called the deferred
rebate That is, at the end OF six
months the shipper is entitled to lo per
that period: hut he doesn't get II. 1t
is held back for the next six months
reriod. II during this latter period all
his business continues to go to the cor
ference lines he gets his rebate check at
the end of that time:
There is just one big coffee shipper In
this country that does not also ship to
Europe. This is the Arbuckle house.
Being exclusively an American con-
cern. they dare to patronize the Bra
lillian, and do. Aside fam their busi-
ress, and despite our lower rates, We
can get no coffee tonnage.
Bad for American Interests.
''The effect Of this condition is most
unfortunate for American interests.
Our ships come from Brazilian ports to
New York light: there is nothing to put
into them. Last year, 1912, probably s
per cent of capacity was filled OH the
northbound leg Of the voyage, while
every ship sailed south full TO its limit.
We cleared th!rty-two ships loaded with
American manufactures last year, bound
to Brazil. That was record business,
as the previous year had been.
The truth Is that there Is an immense
market for American goods in Brazil.
Let me mention one line. The big
Il n 10
can business man who went TO Brazil
a number of years aSo-has been estab-
fishing under American management,
though mainly with European money,
big railroad system in Brazil. Far
quar- wanted American equipment for
his roads. and introduced II. AS a
result, American freight cars proved
so much superior to the European
that everybody insisted on all the Bra
lillian roads using them. The past year
about 1000 American-built cars were
shipped to Brazil, largely for the Cen
trail Railroad Of Brazil, which is the
chief government-owned line in the
country.
of railroad development in Brazil, and
this helps open the market for our rail-
road supplies OF all kinds. 1t is. how
ever. a matter of merit: American
equipment is both the best and the
cheapest, and when 1t once prizes Its
way in, and the people recognize its
merits, they want IL.
Shipping Problem to Front.
AT present the Farquar interests are
working out a huge plan for unifyinS
the railroad systems of southern Brazil
and northern Argentina. This means
the biggest system in the South Amerl-
can continent IL the plans go through,
and il will still further enlarge the de-
mand for American supplies.
But the problem of shipping is al
WAYS at the front in all such connec-
tions. We can't sell goods in South
America unless We can get transporta-
ton for them. Today. we are actually
confronted with the fact that govern
Brazilian line is giving
American manufacturers their one
chance to maintain some measure OF in
of the European combina-
ton that seeks to keep all Brazilian
traffic in European channels.
"'As to Argentina, the situation Is bet
ter for American interests. The Munson
line, the Lamport & Holt line, and Bar
ber a. Co, all British owned, operate
between Argentina and the United
States; in fact, they all make their
American business more important than
their European: and there Is real COM
petition among them. That leaves
American commerce with the two most
important South American countries in
the. anomalous situation of being pro-
line, and in Argentina by a
group of BrItlsh-owned lines
The workings OF the alleged Brazilian
pool. controlling all cxDorts.
including coffee out of BRAZILIAN ports,
made up the first phase OF the investi-