The sun., 1919-02-05
BARON KONDO SEES
SHIPPING HARD HIT
Fears Hard Times Until Own
ers Can Readjust Business
to Peace.
BIG REACTION IN NIPPON
Japanese Marine Magnate
Says His Company Will In
wade Atlantic for Cargoes.

A sharp reaction leading to fall in
prosperity in tho shipping business all
over the world but particularly in Japan
10 bound to follow the war In the opinion
Of Baron II. Kondo. president of the
Nippon Yusen Kaisna, The largest steam
ship company in japan. Baron Kondo.
who is the chief figure in the mercantile
marine circles OF Nippon. Is passing a
month In this country studying shipping
conditions while on his way to the Peace
Conference to head Japans advisory
trade commission there.
He 10 staying in the Hotel Plaza, and
yesterday through an interpreter pre-
dicted hard times for Japanese as well
- European steamship concerns.
Competition Starts Early.
Severe competition will result" he
said. Already II has set in. sooner than
most business men expect after the
lifting OF the war conditions Steamship
lines with expensive boats which have to
pay high prices for labor are going to be
especially hard hit The markets all
over the world are unsettled. The
freight charges for long and short dis
tAnces arc not properly regulated.
All these conditions. Of course. will
have to be remedied before business will
BECOME prosperous again. No one can
say how long Il will take. nor how great
. rebound will occur in the way of
profits. In Japan this reaction has al
ready been strongly felt, In other lines OF
business besides shipping. Steel COM
paniss have gone out OF existence and
some small shipping concerns have failed.
'Shipping at present in Japan is I'M
trt% hxr hA ir,
the way Of taxes and freight regulations
These restrictions. under the law. may
continue in effect for one year after the
treaty OF peace Is signed. But the senIi-
msnt in Japan is strongly against their
continuance. Though we have had 10
pay heavy taxes, the japanese Govern
msnt has been OF great help to our ship
ping during the war
The Nippon Yusen Kaisha itself.
which Is subsidized by the japanese Gov
srnment. had to pay taxes during the
about s12.so0.000. The Arm also paid
about 100000 to the United States
In Isviea
yet in spite OF these taxes and an
iDpost from Great Britain" the Baron
continued, "the business OF our company
made great strides during the war. We
accumulated a surplus of 800. 100000
b addition to our capital OF $50. 900. 001,
AMI hast November declared dividend
q 90 per cent. Although we lost five
shtpA amounting to about $4,000 tons
waters or the Indian Ocean. We were
able to build eighteen new ships in the
last four years, and the total tonnage OF
our fleet OF more than 100 vessels Is
about 10000.
Will Conb World for Trade.
I'VE intend to continue seeking our
trade with all the rest of the world
rather than limit ourselves TO the Pa
enc. Our building programme for the
S&xt few years depends on future con-
ditions. Despite the losses due. &c
U-boats II Is probable that the worlds
chipping already has made up the de-
felt in tonnage. so that greater trade
expansion will be necessary TO employ
the surplus in ships due to the increase /
activity in shipbuilding during the war
''Our shipyaros can handle all our re.
uutrements, but Japan's great need OF
course Is steel. The iron and steel In.
dustry there Is Just developing. Our
company has no mines itself and ha.
no connection with the industry. Due
20 the great cost of this material, which
We have had to get from the United
etases during the war. Il has cost al
much as $500 a ton to build ships II
Japan. In England they can be bull
for SIS ton. and even in this countr,
yOu do not have to pay more than 500
q ton. However. We have the cheapes
iAbor in the world.
your country has already shown
what a wonderful capacity II has FOL
shipbuilding during the war. In Seattle
when first came to this country twent,
years ago. there were no shipyards
When visited the shipyards there Thu
time ! was struck by the great abilit,
your people have in this line. In Japar
We could not hope TO compete with you
sh!pbuilding programme during the war
when cost was not q factor. However
Il remains 20 be seen whether you car
make such great progress during peace
when the problem of expense comes up.
Tho Baron will be the guest OF Juds,
Ebert Gary at a luncheon in the Bank
ers Club to-day.