New-York tribune., 1919-01-28
United States Board Meets
Reduction Authorized by
England on All the Lines
I'm Effect Immediately
Sharp Decline Surprises
Local Circles; Is Aimed
to Stimulate Business


the United Kingdom were cut &C 2-3 per
cent yesterday.
The new rates, which affect all com
modities except cotton, were set by the
British Ministry Of Shipping. They
were announced by the British steam
ship companies here as becoming effect
i've Immediately.
The United States Shipping Board
yesterday met the new schedules. so
that there mag be no possible prejudice
against American bottoms and uni
form rate may be assured on all car
goes leaving this country for British
ports.
at had been decided some time ago"
said a. T.. Clegg assistant director of
operations and head Of the New York
office of the Federal Shipping Board,
"to take this step just as soon as the
inevitable cut in the British rates was
decided upon. When the announcement
was made Mr. Rossiter, director of
operations at Washington. at once took
the necessary formal steps and then
sent out notice of the boards action
All cargoes not yet loaded. even
though they be already on the docks,
Mr.. Clegg said, Will have the benefit OF
she new rates.
Basic Schedule Fixed
AS set forth yesterday. these rates
serve as n basic schedule providing
for reduction from $3.50 to 81 a
disc, and from $1.75 to 30 cents q
cubic foot. This compares with high
gecord rate for the war period of ap-
Sroximately $3.50 a hundred pounds,
and a pre-war rate of about so cents.
a new rate of $50 a ton has been fixed
on steel for export to the United King
dom, against q previous rate Of $50
4on and q pre-war rate of approx
snately So a ton. Business is already
being accepted on the new basis.
The rate to Havre, Bordeaux, Ant
werp and Rotterdam is $1.25 per 100
pounds, or 65 cents per cubic foot,
against the old charge of S66 a ton.
To Marseilles, Cette, Genoa and Ma
tples the new rate is $1.60 per 100
pounds, or IS cents per cubic foot,
against the cid rate Of from 81 so to
s75 per ton. Rates based on weight
or measurement are at ships option.
nounced new rates from Atlantic and
Gulf ports to ports in India as follows:
To Colombo and Calcutta, $110 q 100
pounds, or sixty cents a cubic foot,
as against the old rate of S45 ton,
and to Rangoon and Madras, $1.20 a
100 pounds, or sixty-tve cents cubic
foot, against the former charge of $50
q ton.
Although the cut is generally &c
cepted as representing the first step
toward the restoration of normal con-
dltions IN the transatlantic carrying
trade, the suddenness with which it
came caused distinct sensation in
shipping circles here. While an i'm
portant lowering of rates had been
looked Tor, shipping men we're not
prepared for the drastic reduction de-
cided upon by the British lines They
had rather expected a series of reduc-
tlons over 4 period of many months, as
II was thought that the companies we're
rot yet In Z position to make q rock
bottom cut
81 the Offices Of CASTOR, Williams
& Nlgmore 1t was further pointed out
that If the reduction is not accom-
panied By proportionate cut in char
ter rates, serious losses may result to
the ship operators, inasmuch as many
vessels may nave been chartered far
ahead under the old rates.
move Maue 10 Ala business
Officials Of the Cunard Line, discuss
ing me situation yesterday, said that
the british COMPANIES in meeting the
tarlh question considered either max
lng scale cut, that is to say, lower
ING rates gradually, or making a dras-
nc cut TO permanent basis immedi-
ately. Iney finally chose the latter
course, It Is said OH the ground that
at vas pest tor the trade generally to
"f'lsn 'ne readJustment as quickly as
possible, believing that by so doing
tneY would stimulate export activity.
1t was said thousands of tons of mer-
Cheituise are awaiting shipment here
70 England, the shippers having held
sne Eooos or the prospect that they
would get more favorable rates The
Nunard officials expressed the onin.
ION that the action taken would Tend
10 Stabilize transatlantic rates ANA 81
greatly help the normal outward ao,,,
OF general merchandise. Troopships
hft"E.hE soldiers home from the other
.pe '.4Fe lately been returning on the
dSe'ound voyage without full cargoes
Us salc. and one Of the reasons for
tne cur IN rates was TO attract enough
eaS.oonnd eight to FL the holds.
ihe 1unard Line. FUrnoss, Witty e.
o. the " b .te Star Line, the Wilson
i"he, operating Fessels between here
and England; the Leyland Line. operaf-
ng ships from Boston. and the Cana-
gar Line, which operates between
Jontreal and English ports, are the
principal British Companies in the new
iate-NEng agreement.
AZ present British owners have avail
able approximately i per cent Of
cargo space for commercial cargoes
no rest is subject to orders of tho
britlsh government According TO
present plans, The amount Of ayailablo
space viii be increased next month ia
20 per cent. After March the sbins
VII probably be turned back to their
Shipping men declared yesterday that
- "il not be possible for rates TO
DC restored 70 the pre-war levels. be
eapss operating costs are higher than
Us 's'8' Al the same time, they said
ne total available ship tonnage Of
the world has been substantiaIiy re-.
duced '''''9 'e
The Whole situation" said p c
FfAnKilns wee presiden, Of the Interna-
mond Mercantile Marine Company,
viii neea time tc adjust itself. This
is beginning. it is true, but il Is not
20 dfasNc beginning as might at first
appear. AZ matter Of fact. the nov,
rates are not 20 much below the old
, blue nook rates that have been nre-
yalIInY. Ire untaupliu,s Drn.ava "a -