New-York tribune., 1919-02-04
Ship Owners See
Slump Ahead For
British Sea Trade
Task of Winning Back the
Prestige Lost During War
Appears Prodigious; Fear
of Japanese Rivalry Seen
NeaC York Tribune
E',frop1on p,,a

Copyright 1919. New York Tribune Inc)
LONDON, Feb. 3.-"It is a question
OF free competition from now on. We
are giving up control as quickly as pos
sible, and practically entirely. After
March 1 the shipping rate war will be
a matter affecting shipowners solely.,
That is what might be termed the off,
hclal view of the prospective rate war
between the United States and Britain.
The newspapers representing the inter
ests OF the consumers rejoice at the
prospect, because of the sudden drop OF
prices after four and half years of
imitation.
But neither the traders nor the ship
owners are entirely happy, the former
fearing the sudden fall will check en-
terprise and strain credit, especially
in this country, where the absence OF
any kind of tariff will make outside
competition more speedily felt than
anywhere else.
The shipowners, on the other hand.
while regarding the immediate pros
pect with some equanimity, because of
the immense reserves accumulated
during the war, as we'll as the comfort
ing reflection that freights will be
more scarce than ships for a few
months hence, show msgivings in re-
gard to the future, They realize deep
~ that this country for four years has
been out Of the foreign trade, which
previously has been its staple source
OF wealth, and that even in the best
OF circumstances it Is a difficult mat
ter to pick UP old threads and old con-
nections.
But this is only part of the trouble.
Britain is short 100000 tons of ship
ping, while there is scarcely vessel
af1oat which is not in urgent need of
repair and overhauling. In addition,
sh'pyards and docks are in CONFUSION
and are losing their opportunity Of
making good some of their losses.
These are practical facts.
The underlying principle which dis
mays shipping interests is the extra
ordinary looseness Of the organization
Of industry as a whole. Sir Alfred
Booths shipping commission recently
stated that "to great extent British
shipping reflects the general weakness
of British organizations before the war
their strong individualism and re-
luctance to forego small share of
their independence for the sake of
united action" adding that "the sys-
tematic rate cutting can be more read
lily met by the united action of British
shipping interests than by admlnlstra-
tive action"
Shipping circles are just now in the
mood to take this warning to heart.
quently, what is regarded here
as challenge to the United States is
not merely for the purpose of fighting
the American Shipping Board, but to
counteract conditions generally pre-
vailing in industry and it may be that
the present slump in shipping shares
points to that direction.
1t would be misstatement to say
that shipowners are unduly perturbed
over American efForts-if anything,
they are more concerned with Japan
ese endeavors-because they believe
that, given short interval of twelve
months to reach normal conditions,
they will easily be able to hold their
own ground. 1t would be impossible
for any country simply to improvise
an industry Of this kind. but it is like
ly that competition will have the effect
of driving the British shipping inter
ests into strong combines previously
nonresident.