The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1915-01-26
HIGH SEA RATES
HALT EXPORTS
McAdoo and Red6eld Make
Strong Reply to Ship
Bill Critics.
CITE PRICE INCREASES
Declare Ship Owners Will Reap
Enormous Profits at Cost of
American Business.

Ocean freight rates have been arbI-
trarily increased to an unparalleled
height without regard to the interest OF
American trade. Some business plants
have been shut down as a result of the
exorbitant rates. If common carriers on
land were to practice such discrimina-
tons against shippers and such arbitrary
methods, they would be subject to crimi-
nal prosecution"
These are a few of the striking counts
in a bitter indictment against steamship
companies which have taken advantage
of the European war to boost their
charges, filed yesterday with the Senate
by Secretary of the Treasury McAdoo
and Secretary Of Commerce Redfield.
Specify Rate Increases.
Grain and cotton shippers have been
hit the hardest, according to the report.
the rates on grain having been increased
800 per cent since the outbreak OF the
war. and those on cotton 100 per cent.
Some of the striking Increases which
were reported are:
On grain from New York to Rotterdam.
go per cent; on -four, 500 per cent; on
cotton, 100 per cent
From New York to Liverpool the rates
on the same commodities have increased
from 800 20 500 per cent
From Baltimore to European ports, e&-
cept German, on grain, 800 per cent; on
-four, 564 per cent; on cotton, ga per cent.
From Norfolk to Liverpool-Graln from
Isl TO 200 per cent; cotton, 1s6 per cent.
From Norfolk to Rotterdam-COtton.
al per cent: to Bremen on cotton LOO
per cent. or from Sl.25 per bale to $l5 per
bale
From Galveston to Liverpool-Grain, ia
per cent: cotton. S6l per cent; to Bremen,
cotton LOCI to 1,l50 per cent.
This situation, the report finds. has in
creased the ocean freight charges ''arbi-
trarily imposed upon our farmers and
business mem for the month of Decem-
Der. by S1s,0lS, 100 and IL the exports con-
tinue at this rate, it is estimated that the
ship owners. principally foreign, will col
lect for the year 1915, increased freight
above the normal rates OF S216,-
pa, 400.
Explain the situation.
Analysing the situation the statement
says:
High rates are not only restricting
the general volume of our export trade,
but are actually stopping expectations
in some lines. Ship owners in some in
stances are taking only those goods or
which will pay the highest
rates of freight and are easily unloaded,
ana are OeClnlng 10 accept shipments OF
other commodities (such, for instance, as
lUmber) because the character OF the
shipments and rates obtainable thereon
make it more to the interest of the
owner to accept one class of
goods than another. These discrimina-
tons against different classes OF Ameri-
can produce and against certain lines of
American business are both arbitrary
and hurtful"
The end is not yet in sight. according
to the report, which adds:
Ocean freight rates are still rising,
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 con-
troll or regulate ocean freight rates; it
cannot, under existing law. protect our
foreign trade against these 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 ex-
ports. AS already shown, they are Sc
riously checking our foreign trade, and
in some cases. such as lumber and coal,
are stopping it altogether.