New-York tribune., 1920-11-08
Japanese See
i. S. as Strong
Shipping Rival
Combination of Steamship
Lines Reported Largely
neutrality-suspicious.
of American Competition
World Corporation Urged
Tovo kisen kaisha Director
Visits America; Appeals
to Lines to Get Together

Americas entry as a strong com
petitor in the carrying trade of the
Orient is regarded by shipping men
here as one Of the chief motives for
the reported amalgamat:on of four of
the largest Japanese steamship COM
panies.
Whereas until omparatively recently
three quarters Of the trade between the
United States md Japan was trans
ported in Japanese bottoms, American
ships are now carrying an increasing
proportion of the commerce. and with
the working out OF the preferential
provisions Of the American merchant
marine act further gains are expected
20 be made IN addition, there is the
possibility that American tonnage will
be admitted to the conference of lines
operating between Europe and the
Orient, which would mean additional
competition for Japanese shipping.
Recent advices received by shipping
men from Japan indicate that q merger
has been concluded between the Nip
pon Yusen Ksisha, Togo Kisen Kaisha,
Osaka Shosen kaisha and kokusai
kisen kaisha interests. Some of the
mailer Japanese companies are also
reported to have entered the combina-
ton.
Large Tonnage Involved
The four larger companies own
among them about $50 vessels with an
aggregate tonnage Of 100000 tons gross
The OSAKA Shoscn Kaisha leads in the
number Of ships owned, having about
l25, in comparison with 102 belonging
to the Nippon Yusen Kaisha. Many of
Tie vessels Of the Osaka Shosen kaisha,
however, are small ones, employed in
the coastlng trade Of the Orient, the
Nippon Yuson kaisha having a greater
amount Of ocean-going tonnage. Be
tween them the four lines cover prac-
ticaly all the important world trade
routes, and are we'll represented in the
trade with North and South America.
There is cons iderable doubt in the
minds oi shipping men here AS to
whether an absolute merger has been
Effected, The general belief being that
the agreement is more in the nature
o. a nlan TO secure economy in opera
tion In many of the principal ports
OF the world the lines now have inde-
Il is relieved, one agency at each of
these ports will represent all the lines,
'hus dong away with separate offices
and reducing the clerical stats. Co.
operation in the apportonment of
cargoes and the maintenance OF rates
could also be effected under the com
b.natiou plan.
There has Just come to this country
A 1 g
Togo kisen kaishs and son Of the con-
trolling owner OF the line. He is now
Oh his way from San Francisco 20 New
York. According 10 q statement made
by him At san Francisco, the Japanese
ines fGvor international shipping CO.
operation. ALREADY steps have been
Shipping Board through the con err
more 70 he done along this line. All
substantial business in ocean freights." !"
Merger Conference Held
Relative ,o the reported combination
0! Japanese lines, Asano stated that
informal conferences relative to the
matter had been held at Toxic prior
10 his leaving Japan and that the prof
.ect was likely TO be realized
Shipping conditions in Japan are
Yery bad a. present, Asano says, add
ilg: This ls no time for cut-throat
competition the shipping interests of
Inc world must get together"
In contrast with reports that the
SaIpbuildlng industry is AT d standstill
n Japan. and that the japanese steam
MP companies are canceling their con
struction programs, recent advices in
dcate some renewal OF activity.
Tho hawa aka Dockyard, Of Kobe ia
stated 70 have a plan for the construc-
ton Of thirty steamers of 9,T00 tons
Zach and Of ten steamers of $500 tons
each, launching them at the rate OF at
east orc monthly. The market prices
OF ships are reported to be low. owing
TO the great decrease in demand. and
ONE steamers arc said TO be selling at
zoo yen yl25l ton, though many
builders are cisinclined to sell at less
ihan $50 yen $40.
lhesc prices are considerably above
ne Level OF prices reported from Great
ortain- While labor costs are lower
IN Japan than practically any country
Oulldlng ships in the world, the cost
of steel is factor in keeping up prices
most Of the supplies having to be i'm
ported from tho United States. as
Japan is not yet in position to manu-
'acture sufficient steel for her own
needs. Considerable progress is being
made IN this direction, however.