The sun., 1917-09-07
WAR SHIPPING
RATES SLASHED
Schedule Agreed On Cuts
Them From 65 to IS
Per Cent.
Special Despatch to THs Sun.


WASHINGTON. Sept. "a schedule Of
low ocean rates for Government and
allied war materials was agreed upon
tentatively to-day by the Shipping Com
mittee of the Council Of National De-
fence and the United States Shipping
Board Plans for the formation Of a
chartering committee OF three members,
which will exercise control over the
chartering of all American tonnage. were
also formulated.
The action forecasts an early requisi-
tioning by the shipping board Of Ameri-
can merchant vessels. As COM
mandeered. the ships will be turned back
to their owners to be operated under the
rules and regulations to be drawn by
the Shipping Board. Shortage Of tom
mage also may cause the United States
to seize more than 100000 tons Of neu-
trail shipping in American ports. Dutch
and Scandinavian ships. now loaded with
food products. and to which permission
to sail has been refused by the Export
Board. may be forced to unload their
cargoes and go to Australia and Java
for wheat and sugar.
Permitted ny international Law.
International law gives belligerents
the right to commander neutral ships
whenever the emergency Of war requires
1t. Under the Interpretation the Ameri-
can Government has Just seized several
Austrian ships which took refuge In
American ports when the war broke out.
The rates determined on to-day range
from IS to s13 per ton for Atlantic car
goes, a decrease OF IS to Is per cent.
from the charges now In effect. Neither
Pacific freight nor shipments OF ma
terials not concerned with the prosecu-
tion OF the war are affected by the ar
rangement entered into to-day. The
question Of the Pacific rate Is being left
for adjustment later. pending the COM
pletion Of negotiations with the Japa-
nese mission now here.
Atlantic cargoes consisting Of COM
modities not destined for the use of the
American or allied Governments will
have to pay the going rates, but IS per
cent OF the excess over Government
rates will be rebated to the Government
and set aside for the amortization OF the
cost OF the vessels built under war con-
| ditions.
In this way the ships built under war
conditions will be scaled down in cost
so as to be able to compete with tle
older vessels, which are not subject to
| such high capitalization.
1t Is expected that the new scale OF
rates will accomplish the double object
of reducing the charges which this Gov
ernment and the Allies must pay for the
transportation Of the vast quantities Of
munitions necessary to the successful
prosecution of the war and at the same
time will fix standard toward which
| ocean rates OF allied and neutral ton
mage will gravitate as the American
merchant marine increases In impor-
tance.
No British Cooperation.
These rates have been fixed, however.
without the cooperation of the British
Government. Negotiations entered into
| with the British representatives have so
| far failed Of results.
Welding Ring Of New York has been
appointed chairman of the newly formed
! charterlng committee. The other men,
| bers are yet to he named. The commit
| tee Is to begin operations on September
| 10. and will. in cooperation with the
Shipping Board and the Exports Council,
strengthen Government control Of ex-
| ports as we'll as exert a steadying infiu-
ence upon ocean rates. as every charter
must be approved by it before going into
! effect.