The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1917-09-11
GOVERNMENT COULD
CANCEL CONTRACTS
Effect Of Shipping Control Dis
Cussed BY Maritime Houses
and Sugar Shippers


If the United States undertakes to
control ocean freight rates of Ameri-
can lines it can certainly do so ire.
spective of whether or not there be
pre-existing contracts, is the opinion
of shipping men and of sugar shippers
here. II the United States requires
American ships now in the merchant
trade and takes them, it would relieve
the shipping companies Of their rcspon.
sibilities under contracts for the car
rying of specified sugar by time
specified, they also believe.
From the geographical position Of
Hawaii more interest attaches to ocean
freight rates than elsewhere and be.
cause of the amount of sugar that is
shipped under contract a similar inter.
est attaches to the question of the eff
feet Of government control on CON
tracts. IL Is true that ninety per cent
Of the sugar Of this years crop has
been shipped and that shipping con
tracts end with the close of shipments
of this year 5 crop but the interest at
taches nevertheless.
Expects No Interference
At the Office of Castle & Cooke,
agents for the Matson line John Drew
was seen yesterday and said that while
he believed the United States can, if
it desires, control freight rates to Ha
waii and from Hawaii to the mainland
he does not believe that any action
will be taken relative to the rates be
tween here and Crockett that are un-
der contract with the sugar shippers.
"Where rate of $l5 to SIS a ton
is charged for shipments of sugar
from Cuba to New York and a rate of
- from here to San Francisco, a con
siderably longer distance, it hardly
seems likely that the government would
ask for reduction. If the rate were
$5 ton / doubt if the government
officials would consider il exOrbitant.
As compared with the rates charged
elsewhere the sugar freight rates from
here to San Francisco are disprOpOr.
tionately low"
Mr.. Drew also said that he had look.
ed upon the situation of the United
states communicating Matson liners as
one which would relieve the company
of its responsibilities under contracts
with sugar shippers.
Questions Affecting Hawaii
At Hackfeld L. Company office it
was said that the company was merely
representative of the agents here and
that as such the company had not look
ed deeply into the matter. Doubt was
as to whether the Associated
Press dispatches intended to convey the
idea that coastwise shipping, which
would include Hawaii, would be con.
trolled and il was pointed out that the
word ocean was used.
Hackfeld 4 Company did not look
for any interference with rates under
the contracts of the American HawH-
iian Company and sugar shippers be-
cause of the low rate, $3.50 ton.
This was compared with the rates be
tween HongkOng, and other Oriental
points, and the United States. Hong
kong rates for some commodities had
gone up to $5l a ton and it was ex.
pected they would 90 SO ton higher
At Hackfeld s il was also said that,
in the opinion of the company, a taking
off of vessels cOmmandeered by the
government would of itself cancel the
contract between company ana snip.
pers. o..
May Prevent Large Increases
A. NJ. Novel;. secretary and general
manager of the Sugar Factors Com.
pany, the biggest sugar shippers of
Hawaii, said that he had felt that if
vessels had been Communicated it
would relieve the shipping houses of
- 1 -. In
same way, be thought, contracts would
be affected under a control of rates.
Mr.. Novel; believes there will be
IN increase of transcontincntal freight
rates and thinks that the effect of gov
ernment control on ocean rates would
be to give Hawaii protection against
possible exorbtant rates when present
contracts expire.