Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-01-26
RAISING OF RATES


troll or regulate ocean freight rates: 1t
cannot under existing law. protect our
foreign trade against these extortionate
AMI hurtful charges. The steamship
owners can increase rates without notice
and upon the instant, and our business
men are helpless. They are seriously
checking our foreign trade, and in some
cases, such as lumber and coal are stop
ping il altogether
The report concludes with an argument
in favor Of the ship purchase bill in
whica the Senate is reminded that such
unusual freight charges, if continued,
may result in creating big balance of
trade against this nation. 1t points out
that OF American ships in all trade worth
about $50, 600 900 the Bureau of Naviga-
ton says that only ships valued at $50 :
"lo,0H are in the foreign trade BY some
the argument is made, the report says,
that the government should not do any
thing to cause competition with this
s69 ,0oo, 800 of private capital invested in
ships. although foreign trade is left
thereby entirely at the mercy Of for
eign shipping interests and the relatively
small amount of American capital in
vested in ships engaged in the foreign
trade
Combined Shipping
The nations combined exports and
imports for the fiscal year ended June
20. 1914, the report says, totalled So, 1S5, :
464,l225,
1t may we'll be asked 1t continues,
which Of these interests is entitled TO
the superior consideration Of the govern
meut, the farmers and producers Of the
great grain states of the west and the
farmers and producers of the great cot
ton ana tobacco states of the South, the
merchants, manufacturers and business
men throughout the entire country
whose combined activities represent our
vast trade. or the owners Of the conf
parativcly few American steamships en-
gagged in the foreign trade, whose aggre-
gate investment is approximately $69 000,
600"
There would seem to be but one an
swer, and that is that it would pay us
many times over to invest the $40. 900 COX
as provided in the shipping bill in al
American merchant marine and bring
about as quickly as possible a restora.
tion of normal ocean freight rates with
d saving to American business Of more
than $4,000 600 annually.
1T has been stated that if the shipping
bill is passed, additional tonnage for ouI
foreign trade cannot be quickly obtained
This is incorrect. While we have made
, no effort to test the market for ship
offerings We have been assured by nc
less authority than Mr.. Bernard n. Ba.
kcr. Of Baltimore, man OF the best
character and standing, who developed
to high degree Of prosperity the Amer.
! lean Transport Line, of which he was
for many years President, and who il
thoroughly familiar with the shipping
trade. that many suitable and admirable
shirs for the purpose can be promptly
secured.
Some of these ships are already com.
pleted and can be had Immediately
some are partially built and can be fin
isned in a few months, and others car
be bought and transferred from steam.
snip lines Or routes where the demand
for accommodations is not SO great, tt
the service of American commerce
Others can be secured in reasonable
time from American ship yards which
.
I; is not true. as alleged in some quar-
tiers. that only ships of German registry
-an be purchased. We do not know
whether any OF the German vessels in.
termed in our ports can be secured, OF
would be desirable but we are convinced
that suitable ships Of various foreign
registry are available if the means fol
purchasing them are provided There is
attached TO this report list of ships Of
fered by the Merchant Marine Agency
Boston, Massachusetts, from which j,
will be seen that there are Is ships OF
English registry and Z Of German regis
try which it proposes to sell Other
ships are ohtainable.
I'VE are satisfied that the removal Of
the oppressive restraints now exercised
by foreign steamship companies upor
our export trade will give il an extra
ordinary impetus, and bring to our coun-
try a period of enlarged and unexampled
prosperity.
The fact that our expanding trade
shows at the moment, favorable balanc.
es is no argument that our commerce
moves freely and without injury, or un-
due burdens. We believe that the fav-
ora BILE trade balance in December OF
over slno.000,00 might have been doubled
in January if sufficient ships had beer
available at easonable rates so that
the O, ders which are pouring in upon US
from every source could have beer
promptly filled"
Citing the Panama Railroad and
Steamship Line as "a conspicuous in
stance of successful conduct under the
supervision of the government Of So
called private business the repor,
says:
The operations Of the ships of this
Company offer no justification for tn:
charge Of administrative and executive
inefficiency.' any more than the con.
struction Of the Panama Canal itself.
In the fiscal year ended June 80. 1914
there was a net revenue from the steam
ship line alone of 1914 SO. and in the
four months ended October 81, 1914, there
was a net revenue from the steamship
line alone of ss4 ,294
These net revenues are truly net; tina,
is 10 say, they are net after maintenance
! and depreciation. including extraordinary
repairs. are charged against the prop.
erty This depreciation on the Ships
owned by the company is per cent pc,
annum which is the practice Of the best
private lines and is in excess OF the de.
nreciaticn charged by many privately