Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-10-31
FOREIGN SHIPPING
INTERESTS BALKED
NEW ORLEANS LINE
Methods Employed Similar
to Those Aimed. at Phil
adelphia Commerce
FORCED INTO BANKRUPTCY
Return Carroes Prevented and Re-
bates and Wharf Privileges
Denied


s0orfs on the part Of foreign whipping IN
fcrssfs 10 block the establishment Of a
Me- Of Steamships from this ctr 10 South
xmcrscua ports, as charged bv the Cham
Der Of Commcrce, fhc foiio,vinp ndrrdttvc
OF similar and successful attempt ia
fhscorf such an enterprise at Netc Or
leans has timely and siOnihcdnt Interest
1he methods adopted at the southern
port t7cre sdcnticai scith those schich fhe
Chanbcr OF Commerce shotocd tcere
fhrsafcaed by the foes OF the proposed
Phiiadciphia-south AmevIcan ship line.
These tcerc:
Prevention of return oaroocs
Coercson By ueons Of rebates.
Refusui Of schar1 privileges.
In every respect the three foregoing
ernmpIes OF forcton methods TO throttle
American shipping at an American port
arc paroIIeIed by the plan Of campaign
adopted here tOsth a vseD to disconrdoin0
and, Indeed, straHoiiaO an enterprise Of
east importance TO Philadelphia comrier-
efdi interests. ,
NEW ORLEANS, Oct 3i.-The New Or
leans Pan-American Steamship Company
was organized during the early part OF
1919, as a matter OF civic pride, by the
business interests OF the Mississippi Valley
for the purpose Of operating n steamship
line between New Orleans and Brazilian
porfs
James w. Porch. OF New Orleans. man
ager OF the Lui<ens Iron and Steel Com
pany. succeeded in getting the support OF
the commercial organizations OF the val
ley and funds were obtained by popular
subscription The Brazilian Government
"A - ea NIag lfWaA
es II would give Brazilian coffee merchants
q competitive service with the older lines
operating from South American ports TO
north Atlantic and Gulf ports. who for years
controlled the movement OF coffee ship
ments
According to Mr.. Porch, II was the inten.
tion of the organizers nrst TO charter ships,
and IL they met with any degree OF sue
cess to build American vessels and estab-
lish q regular service under the American
nag American shipbuiiders became inter
ested and partly agreed TO build such yes
sels as were needed, accepting In payment
part cash and part in bonds to be ISSUED by
the company.
FOREIGN INTERESTS ACTIVE
Foreign steamship interests did every
thing In their power to discourage those
who they thought would probably subscribe
20 the new venture. pointing out that car
goes could not be secured from Gulf ports
70 make II a paying venture and subscrfb
ers who were over-zenious Of the success oi
the line when attaching their signatures tc
the subscription were found 10 have turned
cold toward II when called upon to donate
the actual cash. In the opinion Of the or
gRnizers. their fpai attitude was mainly
due TO the efforts Of the foreign shipping In
terests.
sufncient funds were obtained 10 charter
. vessel. and the British steamship Inkum
- "a
10 make the initial voyage. An appeal for
cargo was sent throughout the mississippi
Valley for freights and the response was
the tender OF more freight than could be
accommodated, Il being necessary TO leave
part OF the cargo on the wharf at New
Orleans
SHIPPING ORDERS CANCELLED
About the time that the Inkum was ready
to naii from New Orleans the line had com.
mifments of coffee 10 make up more than
two-thirds OF the tonnage of the vessel for
the return trip.
The activities OF the foreign steamship
lines, or as was commonly known as the
trust. then became evident The New
Orleans office began to receive request
after request for the cancellation of COM
mitments made by Brazilian coffee ship
menfs regardless Of the support promised
BIZ the Brazilian commission TO the line,
with the result that not n bag Of coffee
was brought TO New Orleans on the return
voyage.
Investigation made by the officers of the
Iine brought out the fact that the older
steamship lines which had controlled the
trade Cor years. had an agreement with the
coffee shippers. wherein they were 10 pay
flsIl tariff rates on their shipments. and
II II was proved at the end OF each year
that they had not made any shipments by
other lines they would be entitled TO a
handsome rebate OF the rates paid.
Az those lines were holding substantial
sums belonging 20 the coffee shippers. the
agents OF the older lines pointed out that
should they make any shipments via the
new line they could consider these rebates
forfeited. and would hold out no assurance
that similar proposition would be made
ship Line survive
This threat had the effect Of the Pan
American Line sending their vessels back
70 New Orleans su-pty. and the amounts
earned on the downward trip were lost
IN sending an empty vessel from Braziian
ports 20 New Orleans al n great expense.
Again. II was assumed and the organizers
were assured by shipping authorities that
their vessels could make the round trip In
thirty days. However due 20 the failure
OF the Brazilian port authorities 10 assign
their vessels berthing space with any rea-
sonabie amount OF dispateh, u took from
forty 20 sixty days 20 make the trip. Mr.
Porch said yesterday that the shipping trust
no doubt was responsible 70 a great extent
Tor this delay. as II was able 70 influence
petty officials with authority 70 assign berth
space. 70 have their ships lie out IN the
harbor awaiting room at the wharves 70
load and unload their earsoes.
Mr. Porch said II was his opinion that an
American line could be permanently estab-
Iished. provided IL had sufiicient funds "a
build American vessels and operate them a
loss until such times as they could con.
vince the Brazilian shippers OF the perula.
n<pcy Of such an enterprise. as HIS expert.
encs was that every vessel leaving New
Orleans was compelled 20 refuse freight
each trip on account OF lack Of freight room
He further pointed out that the success
q any line entering this trade with char
tered foreign vessels was short Of folly, "A
<cr>16n khip captains HAD full information
[4-.4 80 na4si1esls ol kA4s vessels 10 supply
y Alien owners the asnounf Of freight, earn
Iusz- etc, which would enaDIe thsm 70 piac.
~ name sorsios voaeels knoun 70 thu
IrpInG trAHs - "nGhtins ships" which
@1|1 sooner o. later 1r1vs ths promoters
~ nsw lIn> into bankruptcy. 2 fat