Daily capital journal. (Salem, Oregon) 1903-1919, 1918-12-23
Lack Of Ships And Means Of
Direct Communication
Disrupted Business.
CENSORSHIP OF CODES
IS ALSO RESPONSIBLE
United States Competitors
Have Lower Freight Rates
With South America.
BY H. b. Robertson

Omitted Press Staff Correspendent.)
Rio Janeiro, Dec. 23.-Drastic meas
urcs must be taken by the United
States government particularly by tho
shipping board, il the American bust
ness situation in Brazil is to be saved,
according to the unanimous opinion ex-
pressed today BY Americans doing busi-
ness here.
Unless regular steamer service for
freight, mail and passengers is re-es-
tablished at once with sailing ships be-
ing used to carry eargoes that are not
urgent and unless the present censor
ship handicaps ON private telegrams are
removed ana more direct channel Of
news communication between Brazil
and the United States is opened, tho
European competitors will be able to
seize Brazilian trade and American bus
mess firms will suffer staggering
blow.
Gloomy View Deepened.
This gloomy view of the situation
has been deepened by the fact that IN
Rio and Soa Paulo alone orders for
more than $l0,000,0o0 worth Of Ameri-
cau goods have been cancelled during
the past month. The limit has not
yet been reached and the prospects for
future orders are fading.
The lack Of ships to Brazil disrupted
business, not only because Of the fact
that no freight was coming in, but also
because there was practically no freight
and passenger service. 1t has been Sow
en- weeks since the last mail reached
Rio from the United States and tho
present cable congestion is adding TO
the difficulties.
American business men complain that
the censorship, which forbids private
codes, is hampering their work and they
also charge that messages destined for
the United States are being sent by
way of competitor countries, furnishing
information which should not reach
those countries. Attempts to send mes
sages by land wires to Buenos Aires
and thence via Panama to New York
have been effectively blocked by still
worse delays.
Reasons for Cancellation.
An official inquiry hege and at Sac
Paulo to ascertain the reasons for can
collation. Of American goods revealed
that many Brazilian firms bought for
speculation, and others, fearing they
would be unable to get delivery, order
cd the same goods simultaneously from
two or more firms. Others declared
they were able to get better delivery
from competitors Of American firms.
The investigation also revealed that
American trade was further injured
by the assiduous spreading of reports
that the United States was preparing
new "blaek lis" TO punish firms
which had cancelled American c... 20.
In the meantime, il is authoritatiseiy
reported that German agents have been
visiting American buyers urging that
order, bo withheld and declaring that
cheap German goods would be delivered
as soon as the peace treaty is signcd.
Many buyers are holding back to sea
what will happen.
Otubf OAkliCu&tAoos
Other difficulties are also confront
Il ing the American firms. The freight
rate from New York to Rio is $35 a
ton, while the rate for the same goods
from Liverpool to Rio rs My SIS. In
addition, the British vessels are main
tanning regular schedules, enabling the
British salesmen to promise delivery Of
goods on a certain date, while Ameri-
can salesmen are unable TO promise de-
livery because no ships are scheduled
from American ports.
Recent announcements in the United
State, regarding American shipbuilding
accomplishments raised Brazil's hopes
| for ships from the United States to q
high point and as consequence OF the
failure Of American ships to appear
now in Brazilian ports the effect on
American prestige has been greater
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