The sun., 1919-07-07
u. S. COAL TRADE IN
CUBA NOW IN PERIL
Boost in Freight Rates May
Cost 5000, 900 Loss Yearly.
BY AMEDEE J. CASEY.

Editor American Coal Journal
Specially Written for the Latin Ameri-
can Section Of THE Sun.
There Is nice little business In
American coal in Cuba, amounting TO a
trife less than 100000 tons a year.
which we are in a fair way to lose as
result of the short sighted policy Of the
U. S. Shipping Board in placing pro-
hibitive rate on shipments OF coal to
Cuban ports. Some of this business al
ready has been lost and we are going to
lose the rest of 1t unless there is an i'm
rlcdiate and drastic cut in the rates.
Before the war the freight rate on
shipments of American coal TO Havana
v as about $3.50 a ton, while the rate to
the south side of Cuba was around $1.7O.
The Shipping Boards present rates are
$3.50 to Havana and 50 to the south
| side, with a new form OF charter party
which guarantees the steamship against
| all risks and which sometimes adds 81
| or Sc to the cost of the coal.
Just why such a tremendous in
crease in rates was made Is difficult to
understand, like many of the actions OF
the Shipping Board. 1t is fairly evident
| that the authorities looked upon Cuba is
purely an American proposition. where
We had nothing TO fear from British
| competition as far as coal was con-
| cerned. Therefore they charged all the
traffic would bear. following the prac-
tice formerly in vogue on certain of the
| railroads here. In this case, however
the thing was somewhat overdonc and
| Cuba backhred,
May Lose All the Trade.
1t is not that this trade is going to
| England; we are still shipping coal to
| Cuba in spite of the rates, but before
| .ong, unless the rates are reduced to a
sane level. there simply isn't going to be
any coal business at all, and once we
lose this trade it will not be easily re-
| gained.
The Shipping Board. and especially
| its recently formed department of coal
exports, is fully aware of the situation.
| Not long ago there was conference In
| Washington between Shipping Board
| officials and n number of leading eX-
porters of coal and others interested in
| the subject where the matter was
| brought to the attention OF ii. y. Saint,
head of the new department.
| At that time a representative of the
Cuba Railway made the statement that
his company could not afford to keep on
paying the high freight rate on coal and
was experimenting with Mexican fuel
oil. which, he said, could be brought in
quickly and at much less expense He
gave the disquieting information that oil
competition already was in an advanced
| stage in Cuba, and that the oil interests
were exerting every effort TO further the
use OF their product.
| During the calendar year 1918, we
shipped l,44O.457 tons of coal to Cuba.
| This, according TO the Department OF
Commerce. was valued at SS,i76,2l3
That is not a sum 10 be lightly thrown
away. even II we are becoming used to
thinking in terms of billions. and, any
way, the only single country that took
a greater amount of American coal in
1918 WAS Canada, to which VIC shipped
1914, 1854 tons.
Must Get Cut In Rates.
The loss of the Cuban trade would
be unpleasant from any standpoint, but
it would be particularly bad to lose this
business to Mexican oil, which is pro-
duced by the cheapest kind of labor and
no. much of that AID. therefore. comes
in competition with our highly paid mine
labor. The trade can be held, or most
of II can, IL We can get reasonable
Il sight rate to the island. The only
thing is the reduction will have 10 be
made quickly. The conference referred
t. above took place more than two
weeks age so the shipping Board has
know of the situat ton for at least that
lenkth OF time. even II 1t has paid no
attention TO the protests which have
been made ever since the high rates
went into effect.
At the time of the conference Mr.
Saint promised to have the matter looked
into and IT is reasonable to believe he
las kept his word. but the investga-
ton ought not to take long, even fol
the Shipping Board and II anything Is
TO he done. now is the time TO do II,
There is Just another thought in con-
nection with this matter: When coal Is
shIT ped TO Cuba. It forms the entire
cargo Of the steamship and the vessel
returns with sugar. II We lose the Cubar
coal trade II will mean that steamships
viii have to go down I'm ballast after
sugar. which, In consequence, will have
to pay a higher freight rate. with a
resulting increase in cost to the con,
sumner here, all OF which will be due to
the protection extended. in ono form
or another. to Mexican fuel oil.