The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-28
Rival steamship Lines Take Tn
Challenge Of Hamburg
American Company.
BITTER FIGHT EXPECTED
Liverpool Looks for Return TO
Passenger and Freight Prices
Of Decade Ago.
SnlainL Chbie DeSpdtch 10 THE SrN.


IoxpoN, Jan. :7.--The rate war started
NJ the Hamburg American Line on the
cancellation of the North Atlantic steam
,blp pool is now In full swing and Il Is to
NJ fight to a finish. The other steam
shin lines declare their readiness TO meet
any cuts IN steerage rates made by the
Hamburg American company and to ac-
eept its challenge at every point. AS a
result rates are tumbling all around
on February / the Hamburg company
Will reduce Its steerage rate to New York
10 s25 and to other ports to s2250. The
North German Lloyd company has issued
orders 10 It's agents to make n similar re-
duction and also to follew every cut by
the Hamburg company wherever and
whenever It is made. but II is understood
that the Bremen company will not cut its
rates lower than the Hamburg company.
Resumes Passenger Service.
The aggressive moves OF the Hamburg
American company include the resumption
OF passenger service to the Orient, which
BY an agreement made some time ago
was left to the North German Lloyd COM
pany. while the Hamburg company car
ried only freight.
The British lines have decided TO cut
the rates between the Continent and Can
ada. The Cunard. White star. Canadian
Pacific and Allan lines. and probably also
the Donaldson and Royal companies. will
reduce their westbound rates by $3.50 and
the eastbound ones by IS. This Is de-
scribed at Liverpool as merely self
defensive decision to meet the possibility
Of passengers being tempted by reduced
railroad fares between New York and
Boston to travel by those routes.
The opinion at Liverpool is that the
competition will be fierce and costly and
that rates will eventually drop to those
Of ten years ago. Nobody will benefit
BY this except travellers. The prices of
shares of the Cunard and White Star
companies have fallen on the Liverpool
Stock Exchange because of the rate cut
ting
Germany keenlY Intereatcd.
Germany Is watching the rate war with
he keenest interest. This interest is en-
HANGED by the kaisers reported supper,
o. Htrf ftdlllN. INC IIltiltSlnS tIIcttcI vi
the Hamburg American company. in the
stand his company has taken. Herr BALM
als in Budapest during the conference
q the North Atlantic pool in Paris and
Is now said that his visit was con-
csrned with an attempt to capture the
Whole of the emigration Vom Hungary.
II is the intention of the Hamburg.
American company to build three 10000
ton steamers for the South American ser
vice. which is regarded as another move
against its rivals.
The supporters OF the North German
Lloyd company say the Hamburg line
viii burn its fingers. They say that al
dough the Hamburg American company
has just placed sl3.750.0O0 in its reserve
fund out of the profits for 1918. thu
lquid funds do not exceed s12,l25,000
compared with sis,s5o.0O0 a year ago
and although he amount is big it vii
not 90 far in the rate war.
Rival Company IL Busy.
Herr Heineken. director OF the Nortl
German Lloyd Line, is now in Vienna ant
II IS presumed that he il trying TO offse
the results of Herr Ballins activities |,
Austria Hungary. He reiterates tn
views he expressed before the Paris con
ference.
He adds that the British lines, although
protesting that they are not concerned
in the quarrel between the two Germal
companies. agree with the North German
Lloyd company in the declaration that tn
CLAIMS Of the Hamburg company are I'm
ju.titable and cannot be conceded.