South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-01-25
SeCretareS MCAdOO and Red
fiji" Declare Ocean Freight
Rats, Arbitrarily Increased,
Affect Business Here.
C0AM-RCE HALTED;
FACTORIES SHUT DOWN
Check on Business Exerted by
Exorbitant Charges Held to
be Strongest Reason For an
American Merchant Marine.

WASHINGTON, Jan. 25.-"Ocean
freight rates have been arbitrarily
increased to an unparalleled height
without regard to the interests Of
American trade.
Some business plants have been
shut down as a result of the exor-
bitant rates.
IF common carriers on land were
to practice such discrimination
against such shippers, and such arbi-
trary methods, they would be SUBJ
jected to criminal prosecution.
These counts are contained in a
bitter indictment against the foreign
ship owners, filed with the senate to-
day by Sec'y of the Treasury Nc
AdOo and Sec'y of Commerce Red
field. The indictment makes a strong
plea for the purchase bill, asserting
the facts as they have found them
are an unanswerable argument in
favor of the American government
merchant marine. The secretaries
declare that the increase in cotton
rate on shipments to Bremen and of
900 per cent on grain show, in part
the eXtOrtionate methods of the
steamship owners in dealing with
American exports since the begin
ming of the European war
Cite Examples of Increase.
An increase in the cotton rate of
1 100 per cent on shipments 10
Bremen and of 900 per cent on
grain are held up as evidence of the
manner in which these steamship
owners have taken advantage of the
war to mulct the American exporter.
And the end is not yet in sight, ac-
cording to the report which says:
ocean freight rates are still ris-
ing and are limited only by the greed
of the steamship owners on the one
hand and by what the traffic can
stand on the other.
THE government has no power to
control or regulate ocean freight
rates, it cannot, under existing law
protect our foreign trade against the
extortionate and hurtful charges.
The steamship owners can increase
rates without notice and upon the
/ instant and our business men are
/ helpless. The steamship companies
are their own masters, and do as
they please with the transportation
of our exports. AS already shown,
they are seriously checking our for
| eign trade and in some cases, such
as lumber and coal are stopping it
altogether"
Supplement- Former Report.
The report today was supplement
| tai to the statement made on Dec.
/ 26 last, and was made in response
( to the resolution passed Dec. Is,
calling for information regarding the
ocean freight rate situation. Some
of the striking increases which were
reported to the departments by
American business men and shippers
are:
From New York to Rotterdam on
grain 900 per cent.
On flour 500 per cent.
On cotton 700 per cent
From New York to Liverpool the
rates on the same commodity have
Increased from 800 to 500.
From Baltimore to Europe except
Germany on grain 40; cotton 61O
per cent.
From Norfolk grain 1S6 per cent.
From Norfolk to Rotterdam cot
ton All per cent; to Bremen on cot
ton 1 100 per cent, or from SIPS per
bale TO SIS per bale.
From Galveston to Liverpool grain
l174 per cent; cotton 361 per cent.
To Bremen cotton LOCI to 1,151
per cent.
Increase Is Enormous.
The report finds these ocean
freight charges arbitrarily imposed
upon our farmers, and business
men" meant an increase for the
month of December alone of S1S,-
IO1S,7O0 and if the exports continue
at this rate, it is estimated that the
ship owners. principally foreign, will
collect for the year 1915 increased
freight charges above the normal
rates OF $216, 6,224,400.
Analyzing the situation. the report
says:
High rates are not only restrict
ing the general volume of our ex-
port trade, but are actually stopping
expectations in some lines. Ship own
ers in some instances are taking only
those goods or commodities which
Will pay the highest rates of freight
and are easily unloaded. and are de-
clining to accept shipments Of other
commodities (such for instance as
lumber) because the character of the
shipments and rates obtainable there
on make IL more TO the interest of
the steamship 10 accept only class
of goods then another. These dis
ordinations against different classes
of American produce and against GER
lfafn lines of American buinaSS era