New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-07-30

futile unless we can give good service
in the delivery of goods. and also be
able TO deliver them at prices some
where near the freight charges OF our
competitors.
There are those in the United States
who contend that we have enjoyed as
good rates and as good facilities to
South American ports as we could eN-
pect. They say that the European ad-
vantage in rates is due to the larger
tonnage moving between the countries
and more cargo space available as a
result; They argue that when our
business is large enough additional ia
cilities will be provided. This SOUNDS
reasonable enough. but if you present
such an excuse TO South American
business man he will listen TO IL with
amazement. lie will promptly declare
that such a theory is inconsistent with
everything we have done in the United
States in the building up of our coun-
try. In one direction after another we
have constructed commercial machin-
cry and run il at a loss so long as was
necessary TO create q volume of bust
ness sufficient 10 yield profits. The
South American merchant maintains
that under the conditions which eN-
isted before the war he paid anywhere
from 10 to % per cent more for the
transportation of merchandise from the
United States than he did for carrying
il corresponding distance from Eu-
rope He also points out that we paid
similar excess rates on raw material
imported into the United States. In
the opinion OF the merchants of the
southern countries, the rates were made
bv the foreign steamship companies,
and our American ships maintained
practically the same level.
Advantage in Freight Rates.
Freight rates to leading South Amer
lean ports during the past year have
been sensational. and the disparity
in costs Of transportation between
Europe and the United States and
South American ports has been very
conspicuous From the opening OF the
war until April last shipping rates
from American ports to South Amer
lean ports were approximately oV per
cent higher than from corresponding
distances in Europe. In the mid
die of April a still further increase
became effective, and az present inc
South American business man can Sc
cure European merchandise at
freight cost fully rs per cent less
than il he bought the goods IN me
United States. The startling schedule
Of rates now in force on many com
modities is not appreciated by the
United States. Before the war the
cost Of moving coal from the United
States 70 Buenos Ayres was 81 to 80
ton. Recently il was more than go o
ton. and as a result steam coal was
selling in Buenos Ayres at SIS to S5O
q ton. Hard coal sold as high as $40
ton. Because Of this condition, the
railroads Of the southern countries
have been burning wood Tor months
and oil is being used IN the big power
plants Of the cities. The rate on macs
moving 10 the United States was IN
creased in almost the same proper
ton as coal. but hides were sent 10
Europe for 25 per cent less, before
the war general. hardware from the
United States was carried TO Buenos
Ayres for about 81 ton. Untll April
~ il was $40 a ton, but on that date
notice was given that 1t wouid Oc
,ieised IN $50 General merchandise
vas TRANSPORTED 10 Buenos Ayres for
Is cents a cubic foot before the wal
last spring il was up TO GA cents a
cubic foot, and in April TO Sl.3O. More
OVER. when the cost OF space was
quoted at these rates shippers were
even only fortv-eight hours to accept
The offer The rates on drugs were
Increased about eight TO ten times
above normal. snC but recently a
s,ner+aY Of IS her cent Of the value
of The merchandise was added TO the
Moo,u,biiel IL * 70 be borne in
,n;rd +ba+ All these commodities are
,oovine from Europe at a cost of 5O
TO 70 per cent lets.
The effect of al, this is shown clearly
in the bidding on contract IN buenos
Ayres recently for cast iron piping ~
involved about a million ana NAH ool-
lars. and three leading American manu-
iacturers participated In the plooing.
They were able 70 make ngure ioI
the material on the wharf in New YORK
Eitv lower than their English competi-
tors. hut a concern in Birmingham,
ENGLAND. secured the contract because
III ability TO Offer a price which meant
about SOS a ton less, all the advantage
coming from bower freight rates.
TRANSPORTATION is part of the cost OF
INV merchandise. and notwithstanding
ali other ADVANTAGES. we cannot go for
ward as we should in South American
development until the shipping situs-
ton is vastly improved.
Irrespective of what may be done in
supplvine a larger number of cargo
ships the leaders of thought in all the
countries of the East coast are unanl-
nous in the belief that the most I'M
portant service needed is line OF hlgh
class and fast passenger ships, capable
Of making the run from New York 20
Buenos Avres in two weeks, with fire.
ouent sailings. Such line would bring
y complete change in the shipping at
mosphere Of South America. 1t would
operate at a very substantial loss foi
a considerable time, but il would great
~ stimulate commerce between the
countries. Private capital Will not un-
dertake the operation of such a line
with its inevitable losses, and some
plan must be devised by which the gov
eminent can make it possible.
On the West coast we have some ad-
vantage in the development OF ou'
shipping because OF the Panama canal
This would be true even IN dong pusl-
ness with the Argentine If the Trans
Andine Railway could be used enec-
lively in the movement OF 1reient!'
From New York 10 Valparaiso, Cnili'
through the canal it is 4,6SS miles
more than a thousand miles less imam
from New York to Buenos Ayres'
Freight could be carried across the
mountains by the railway as it is un-
der normal conditions and delivered IN
less time in Buenos Ayres than II sent
entirely by steamship. The railway
calls for considerable develoment, how
ever. to secure a reduction of rates, for
costs Of operation are necessarily
large, since the road climbs some a.
600 feet in the air. Another difficulty