The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-17
rs THIS "BUSrNESS"?
Paying $40. 900 900 20 Deliver 1000 600
Hales Of Cotton 10 Germany.

Hales Of Cotton To Germany.
To THE EDITOR OF THE SuN--Sir: Pres
ident Wilson in his Indianapolis speech
stated that he has never been in bust
ness. He went on to prove It in his
argument in favor OF the shipping bill
by saying that "the farmers Of the Uni
ted States, those who raise grain and
those who raise cotton. cannot get any
profit out OF the great prices that they
are willing to pay for these things on
the other side Of the sea because tho
whole profit is eaten up by the extor-
tionate prices for ocean carriage"
The President is apparently under the
impression that when the farmer sells
his wheat in Chicago for the unprece-
dented price OF S1.40 a bushel he may
have to deliver II for this price to any
port in the world. Mr.. Wilson does not
seem to know that the consumer pays
the freight. The enormous increase in
our exports within the last few months
refutes his statement that the high
freight rates eat up the profits.
Secretary McAdoo's arguments before
the Commercial Club OF Chicago in
favor Of the shipping bill are no less
astounding. He advances the dangerous
and unheard OF doctrine that ut is the
duty OF the Government to engage in
any activities. even OF a business ma
ture, which are demanded in the inter-
est OF all the people OF the country
when II is impossible TO engage private
capital In such operations"
This Is nothing more nor less than
State socialism. According to this the
DRY the Government should engage in
the manufacture OF coal tar products
and other articles which we usually oh
tain from Germany because they are
not manufactured in this country.
Will Mr.. McAdoo kindly advise us
what the indications are thu the ship
ping bill is demanded by all the people
OF the country? There seems to be
widespread opposition to II among the
business men OF the country.
"Ildl ItdSbIS has MI hCAubO lbI
stating that II is impossible TO engage
private capital In the shipping bust
ness? There have been a number OF
more or less circumstantlal reports that
capital is ready to invest in shipping,
and the present high freight rates offer
every Involvement for It TO do so, but
as was stated in the Chamber Of Com
merce Commission committee report on
the shipping bill, THE problem is one Of
business. and that an American mer-
chant marine to be permanent must
Justify itself in competition with the
ships Of other nations. But the feeling
that the Government may enter into
competition for ocean carrying trade
will prevent the participation OF private
enterprise in solving this problem"
According to the report laid before the
Senate recently by Secretary McAdoo
and Secretary Redheld the demand for
cargo space to South American ports is
not sufficient 10 I'LL the steamers leaving
for such ports. The tonnage available
for the Far East is also said to be suf-
ficient TO meet the demand.
The nations OF Europe are buying our
goods in unprecedented volume in spite
Of the high freight rates. and it would
seem therefore that the main purpose
OF the shipping bill Is to acquire ships
for transporting cotton to Germany, as
the McAdoo and Redheld report states
that lat the present time the freight
rates on cotton are the key TO the sit
uation and the question OF shipments
Of cotton has been one of the determln-
ing factors in the shipping situation.
The opening OF German ports to Ameri-
can cotton has greatly increased the de-
mand for cargo space, and the result
has been a very marked advance in
freight rates all along the line"
Our business" Administration there
fore proposes to commit the country to
an expenditure OF s30,O00,000 in order
to deliver 2,oOo.OO bales OF cotton to
Germany.
Has anything more fatuous than this
ever been proposed? X. W. S.
NEW YORK january l6