The Washington herald., 1919-01-31
AMERICA READY
TO Give BRITAIN
HOT TRADE RACE
Will More Than Meet Any
Cut in Shipping Rates
England May Make.
SINISTER GAME SEEN
Brainbridge Colby Declares
Future Control Of Sea
Trade May Be Plot.

America viii meet, and, if neces-
sary, more than meet, any cut In
shipping rates the British may see
fit to make in their effort to seize
control Of markets and ocean trans
portation.
That was the fiat assertion today
at the Shipping Board. While the
chiefs Of the Division of Operation
The Shipping Board meanwhile was
discussing all-aroUnd reduction in
shipping rates especial reference be-
ing made to charges on cargoes to
South America. For the moment. the
British rates are less from Liverpool
than the American from New York.
This situation. it was indicated, Is
to be established Immediately. An
nouncement Of new rates Is likely to-
day.
America to Best Moves.
Americas position was set forth
by BainbTidge Colby, Shipping
Board Commissioner, as follows:
TT was inevitable that shipping
rates had to come down. but we had
hoped by discussions with the Brit
ism government to bring them down
in a normal manner so as not to dis
locate markets and bring about un-
necessary and undesirable nervous
ness and furry.
Since it appears that British
Ship-Owners consider this the psy-
Geological moment to launch a big
drive for their own purposes. We
are determined to meet any cuts in
rates they may make, and in some
cases do a little better.
If British ship-owners consider
It to their advantage to reduce rates
to such an extent that in many
cases ships may have to be operated
at a loss. we can stand it as long
were in conference preparing to slash
rates still further. especially rates to
South America. the first rumbling of
belligerenCy came from the direction
Of Congress. Sharp criticism of Eng
lands embargo against American
products was voiced on the floor OF
the Senate and talk Of reprisals came
from both sides of the chamber.
An air-tiEht embargo on exports of
raw materials of any sort to England
was advocated by Senator Hoke
Smith. of Georgia, as the most ef-
fective means OF bringing the British
TO realization of the fact that America
is in position to defend herself against
attack on her trade.
Would Meet British PIotters.
As an alternative. Senator Smith
suggested that all export license re-
strictiOns now in force by the War
Trade Board be removed, and AmeTi
can exporters be permitted to take
10 every market in the world the ac
CUmulation Of raw materials and man.
Ufactured products nov on hand, car
rying them in American ships and
getting the goods there first This,
he pointed out. would give American
exporters a tremendous advantage.
enabling them to get the cream of
markets bare for four years as a re-
suit of the war and would put them
i'm a position where they could de-
fend themselves from the onslauEhts
OF British and other traders coming
along later in an effort to win the
markets.
as they can W. are going to trOt
right alongside.
There is one man who won't lose
anything at any rate. Youl find it
always the case Jnat somebody
wins. In this case il rs the shipper.
The sIashed rates are most certainly
n benefit to MIN
Purpose Way be Double.
Mr.. Colby referred to the British cut
i'm rates as n hectic" enterprise. 1t
might serve = double purpose. he
pointed out. First. if the British were
permitted TO cut rates without compe-
titiou. they would seize the ocean
transportation Of the world. while if
"a rate war goes on for any period of
time. the British shipOwpers will be
ir a position to quote figures showing
the poor profits and even losses in the
shipping business, as a discourage
mCnt to American investors who might
be considering putting their money in
TO ships.
1t was pointed out that America is
at the crossroads as regards mer-
chant marine investments and the up
building of n mighty merchant fleet
II returns from the business proved
poOr. owing to rate war. millions of
American dollars might be scared
away from ship construction with the
result that the British would have n
free field 20 20 ahead and build up a
merchant marine which would have
little TO fear from the comparatively