Evening star., 1915-02-12
LACK Of SHIPS KILLS
TRADE, EXPORTER SAYS

Trade which should come to this
country from South America as a d.
rect result of the European war is be-
ing strangled, and unusual measures
must be taken at once to. cope with 1t,
according to letter made public today
by Secretary Redfield of the Depart
ment of Commerce, from William G.
Wufp, secretary Of a New York firm of
exporters.
While figures are given to show that
rates on bulk goods to South American
points have increased since August l
from so to 800 per cent, yet the prin-
cipal complaint seems not to be the in
crease, but the refusal of steamship
companies to guarantee the stability
Of their rates.
Cause of Loss.
quite aside from this question of
rates. says the Letter. in part, the very
scarcity of steamers, which prevents
constant and punctual service, inter-
feres with our foreign trade fully as
much as. and perhaps a little more.
than the high rates of freight, of which
It is said to be the cause. The South
OF offers and acceptances covering
transact1ons to take place at some
specified future time. l am speaking
of the business in foodstuffs ano other
staple lines, which run into bulk and
which, therefore. are the most impor-
tant part of the business from the car
rlers standpoint.
How Orders Are Placed.
The Brazilian merchant usually COW
ers his requirements in flour for sew
eral months ahead, at a fixed price.
which, besides the cost of the article
itself, includes all incidental expenses,
such as freight, insurance, commission
and interest
During the past few weeks we have
peen compelled to neglect a large num-
Der or promising inquiries from our
regular brazilian customers simply be-
surance from the steamship companies
as to the required shipping opportuni-
tles and as to the rates to be charged
by th1m.
In the case of one bulk commodity,
Tor which We act as selling agents, we
were compelled to cable our representa-
tives IN the Argentine Republic to stop
sellng, not because the rates of freight
are 100 high. but because of the uncer-
talnty OF shipping facilities during the
next few months. and the unwilling
ness or inability of the steamship COM
pan1es to quote Il firm rate of freight,
to hold good for a sufficient period of
time. Thus business is lost daily be-
the many perpleXing questions result
ing from that condition.
Scarcity of Ships.
1T seems immaterial whether this
scarcity is due to congestion in Euro
pean ports or whether it is due to the
withdrawal of large amount Of ton
mage by the British government for
war purposes. The fact remains that
the scarcity exists and seriously inter
feres with the successful conduct of
our South American trade. which in
other respects is beginning to show
considerable improvement over the first
four or five months following the out
break of the war. This scarcity must
be remedied before this country can
take advantage of the revival of trade
in South American countries. and it fol-
lows that what is required is new and
additional tonnage not now actually in
in operation.
There is no doubt that an unusual
emergency exists, and unusual meas
ures must be taken to cope with it in
order to prevent the strangulation of
the South American trade. which just
now is of such vast Importance to this
country"