New-York tribune., 1918-07-26
Port Congestion
Proves Value of
Through Lading
Exporters Paid for 500 Car.
loads Held Up a
Year
Especial Dispatch to Tho Tribune)

Especial Dispatch to Tho Trtbune)
CHICAGO, July 25.-More than 500
carloads of freight intended for ex-
portation have been held up for one
year at Pacific ports and are still await
ing transhipment by water. This freight
includes many articles, but the princi-
pal ones are iron, steel, tinplate and
other materials for which there is
urgent demand in the United States.
Fully 100 Of these cars are laden with
steel or its by-products. The conges-
tion is due in small part only to the
embargo against Russia.
The congestion had begun before the
United States government commenced
to license all exports, and at time
when American manufacturers and ex-
porters were selling everything for
which there was foreign market, re-
gardless of available ship tonnage,
rates, war contingencies or any factor.
On all shipments Pacific steamship
companies, which are controlled almost
entirely by the Japanese, quoted sky
high freight rates, and the United
States had so few vessels on the Pa
clfic that communicating craft to move
these goods was out of the question.
Millions of dollars are tied UP in
these 500 carloads. The money was paid
by Oriental buyers who are out of cash
and the goods. This shows the advan-
tage of issuing through bills of lading
for export shipments. All of the goods
held by these 500 cars were covered by
through bills of lading issued to the
manufacturers and jobbers in New
York, Chicago and other cities, and the
bills have all been negotiated and the
money has gone into circulation.
By abolishing the through export bill
Of lading, as ordered by the United
States government for August 1, but
temporarily held up, SUCH a congestion
of export shipment would have caused
chaotic financial and commercial condi-
tions. The bills of lading would have
been issued to the port of shipment,
and as the goods we're consigned to
foreign countries domestic bills of lad.
ing would not have been negotiable.
The American manufacturer and ship
per would have neither his goods nor
pay for them.
ne american Shlpper might nave
ordered a return Of his goods after
they had been held up for months at a
Pacific port, but he would have had to
pay freight charges in both directions
and sustained large loss in general.
But having through bills of lading is
sued by railroads at the points of ori-
gin, manufacturers and jobbers in the
United States were protected as soon
as their wares were delivered to the
carriers. Banks cashed the bills of lad
ing and the money went into circula-
ton.
Under the proposed new rule bills Of
lading for these 500 cars would be is
sued only to the port of shipment, and
steamship companies would then take
the matter up. Under this new deal it
is said that the steamship companies
will not issue bills of lading until
goods are in their possession, which
means in these congested times that
the bills will not be issued for thirty
days after such shipment leaves Chi
cago, and probably sixty days after
leaving New York.
1t is said that the government will
commander the 100 cars of steel in
c1uded in the hO0