The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1919-06-24
COAL FREIGHTS TO
CUBA TOO HIGH
Amedee J. Casey Points to
Condition That Should
Be Remedied.
~ AMEpEE }. CASEY.
Editor, American Coal Journal.

There Is worry nice little business
n American Goa; down In Cuba,
amounting 70 trifle less than 4 mil
lion and q half tons q year, which we
are IN a fair way to lose as a result OF
the shortsighted policy Of the Ship
ping Board in placing prohibitiye
freight rate on shipments of coal to
Cuban ports Some Of this business
has already been lost and we are going
10 lose the rest OF It unless there Is an
Immediate and drastic cut in the rates.
Before the war the freight rate on
shipments OF American coal to Ha-
vana was about 31.5o q ton, while the
rate to the south side or Cuba was
around $1.70. The Shipping Boards
present rates are $3.50 to Havana and
80 70 the south side, with new form
OF charter party which guarantees the
steamer against all risks and which
sometimes adds two or. three dollars
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 &C.
lions OF the Shipping Board. It is fair
ly evident that the authorities looked
upon Cuba as purely an American
proposition where we had nothing to
fear from British competition as far as
coal was concerned. Therefore, they
charged ali the traffic would bear, fol.
lowing the practice formerly In vogue
on certain OF the railroads here. In
this case, however, the thing was
somewhat overdone and Cuba back,
fired.
II IL ~ th.t tht, .-aao a. -.t
to England; we are still shipping coal
TO Cuba in spite OF the rates, but be-
fore very long, unless the rates are re-
duced to a saneSlevel, there simply
isn't going to be any coal business at
all and once we lose this trade It Is go
fng TO stay lost.
The Shipping Board and especially
It's recently formed department Of coal
exports, is fully aware of the situa.
ton. Not long ago there was q con-
ference in Washington between Ship
ping Board officials and a number of
leading exporters of coal and others
interested In the subject, where the
matter was brought to the attention
OF H. Y. Saint, who is 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 in.
formation that oil competition was al
ready In an advanced stage In Cuba
and that the oil interests were exert.
ing every effort TO further the use OF
their product
During the calendar year of 1918, we
shipped ], 440,457 tons of coal to Cuba.
This. according to the Department of
Commerce, was valued at $S,476,213.
That Is not sum to 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
greater amount OF American coal In
1913 was Canada to which we shipped
1e.1s1, 1854 tons.
The loss of the Cuban trade would
be unpleasant from any standpoint,
but II would be particularly bad TO lose
this business to Mexican oil which is
produced by the cheapest kind of labor
and not much of that and, therefore,
comes In competition with our highly
paid mine labor. The trade can be
held, or most of It can, II we can get
4 reasonable freight rate to the island.
The only thing is the reduction will
have to be made quickly. The con.
ference referred to above took place
more than two weeks ago, SO the
Shipping Board has known of the SIT
nation at least that length of time
even II II has paid no attention to the
protests which have been made to Il
eyer since the high rate went into
effect. At the time OF the conference
Mr.. Saint promised to have the matter
looked into and 1t is reasonable TO be.
lieve he has kept his word, but the in.
veBtigation ought not to take long.
even for the Shipping Board, and II
anything Is to be done, now in the
time to do It
There is Just another thought In
connection with this matter: When
coal is shipped to Cuba, It forms the
entire cargo OF the steamer and the
vessel returns with sugar. II we lose
the Cuban coal trade, It will mean that
steamers will have to go down in bal.
last sitter sugar which, In consequence,
Will have to pay higher freight rate,
with resulting increase in cost to the
consumer here, all OF which wilt be
due to the protection extended, in one
form or another, to Mexican fuel oil.