New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-10
Car Congestion Due Soon
in New York as Goods
Pile In
COTTON AND GRAIN
SHIPPERS HARD HIT
Banks Dealing in Foreign
Exchange Will Feel
Effects

The virtual Dlochaue o. At'nH'N
ports through fear OF German subma-
rines is beginning to be felt by the
country at large, and will lead, 1t IS be-
ieved, to serious congestion If 1t con-
tinues unrelieved.
This was the opinion Of bankers,
manufacturers and railway men in New
York City yesterday. Cotton and gram
shipments. il was said, have been hard
hat, and banks doing business on FOR
eign exchange have also been greatly
annoyed.
Thus far the reduced sailings have
not added TO the already congested con-
dition of the railway freight yards. But
railway men said yesterday that 1t was
only a matter of time before this would
be felt, and. in addition, propnesied
that a continuance OF the present block
sde would mean a car famine.
Shippers Are Hard Hit
Bankers conversant with the export
situation said yesterday that cotton
and grain shipments have been espe-
cially hard hit. In number OF cases
il was said that shippers were with
holding their goods from the railroads
sc the point Of production in the IN
terror because they found It impossl-
BILE TO obtain the necessary ocean ton
mage and were therefore unwilling TO
send their merchandise on to the sea-
board where il might have 70 be placed
in storage with resultant expenses and
Inconvenience.
The threatened embargo on Ameri-
can export shipping has proved
source of great annoyance to the banks
doing business in foreign exchange.
Eychsnge has been sold and negotiated
against the exports now tied up. If
the merchandise, therefore, does not
reach its destination the exchange
drawn against it becomes invalid.
To guard against the loss of interest
arising out Of any prolonged delay, the
largest banks in the city sent out let
tiers yesterday calling attention 10 the
fact that as the sailing dates of mail
steamers are very uncertain and as
exchange is usually sold in this market
for payment ION steamer sailing date
an adjustment Of interest must be made
on all such items negotiated prior TO
the date Of the steamer selling. THIS
means that the banks are making an
extra interest charge on the shipper
of goods covering the extra PERIOD over
which the banks have TO finance such
shipments. in the event that the SIT
uation does not improve soon. II is
expected that the Allied governments
will arrange to reimburse the American
shippers for the extra interest charges.
Manufacturers Alarmed
Manufacturers also expressed alarm
at the continuance of the blockade yes
terday.
There is no denying the seriousness
Of the situation" said ". ). kies, vice
president of the American international
CORPORATION SO far as our own corr
pany is concerned. however, we are in
position now where we would be little
affected by the efforts of Germany TO
prevent supplies from going TO tie
Allies.
THE only ono Of our companies that
is shipping its product to Europe is the
Allied Machinery Company and the
tools manufactured by il are going for
ward in British bottoms. Our plans
are not being interfered with in any
way The Pacific Mail Steamship Com.
pany, which operates on the Pacific, of
course is not affected by the German
order, while We do not expect that Our
trade with South America will be in
terfered with
The railroads can side track ship
ments all along their lines. to prevent
over congestion here, and have also, IN
many cases, developed the policy Of
OBTAINING certain kinds Of merchandise
at the point of origin.
But such an arrangement is only
makeshift While cars are being side
tracked throughout the West to save
New York terminals from overcrowd-
ing. the shortage of cars will naturally
be growing more acute each day.
"Thc point of absolute tieup would
not be reached until shipping had been
cut off entirely" a railroad executive
declared yesterday. "ln such case we
would have a condition OF no cars
coming TO this port-Sincc there would
be no room for :he goods they held
and as "a result. no cars returning 20
the West loaded with goods from New
York.
Frankly, railroad men do not be-
lieye such an extreme condition will
ever arise. wa DO not believe the
United States government is going 20
see shipping come 20 standstill. Ever
since the German submarine blockade
went into effect with renewed energy
the British ships have moved as usua!.
We have reason TO believe that these
ships will continue to move, even
though the vessels OF American owners
and those Of smaller foreign countries