The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-18
SHIPPING COMBINE
TALK IS RENEWED
Serious Slump in Japan Re-
wives Project for CONSOLE
datiOn of Interests.

TOXIC, Oct. 1.-The serious slump in
shipping has again brought up the ola
question of shipping combine in Japan.
rhe proposal for a consolidation Oh
which much is now said, is a PROPOSE
ton of more than dozen years stand
ing. The fact is that II is Drought for
ward every time there is serious slump
n shipping
In the wake of the Russo-Japanese
war Japanese shipping suffered from
serious slump, and to find way out
Of the difficulty some owners of tramp
steamships advocated their amalgama-
ton. But this proposal did not mate
rialize, owing to the conflicting interests
Of the ship owners concerned, especially
on account of the difficulty OF arriving
{ an agreement as to the value at whlch
heir vessels were to be transferre1 to
The company which would have been
established by the amalgamation.
The European war suddenly placed
apan in the forefron. of the woi Ids
marine countries, and at the end or
the war, naturally, her shipping was
hit as greatly as it had been benefited
by the opening of hostiilties. The great
ness of the bow has made the necessity
for amalgamation all the greater The ne
necessity was so apparent that shortly
after .the conclusion of the peace treaty
the Asano Shipyard, the Yamashita kisen
Kaisha the Kawasake Dock Yard and
some other prominent ship owners and
ship builders proposed to establish large
shipping company by amalgamating
part of their interests. The ostensiblo
object was to strengthen the Japanese
position against foreign competition,
.,.I fAr l.tg he a
agreed to give special aid to the pro-
noters.> Some critics, however, said
that the real object was to relieve the
difficulties of the ship owners concerned
due to the slump in the value of vessels.
Owing to the divergence of the inter-
ests 1t was considerable time before the
proposed company. the Kokusai Kisen
Kaisha-as 1t was termed-was estab-
.ished. which was early last year. This
company only covered several Leading
owners of tramp steamers and there
re many ships Of the same kind be-
SIDES them.
than 1000 tons numbered only sixteen.
totalling 1900 tons, but according to
the latest statistics the total number
Of such ships is d99 with an aggrec ate
tonnage of 1893 0'0 tons. OF these ships
239, with 1,15i000 tons, belong to the
Nippon Yrsen Kaisha. the Osaka Sho-
sen Kaisha, the Kokusai Kisen Knisha
and the Togo Kisen Kaisha. The re-
mainder. amounting to close upon 100000
tons, are all tramps The Nippon Yusen
Kaisha and other large companies have
large reserve funds and. what is more
important, firmly established connec-
tons in the trade. In spite of the pro-
nounced depression of the shipping
trade 1t is not very difficult for them
to hold their own. but In many cases
the plight of the tramp owners is more
serious than is generally supposed. The
| fact is that the tramp owners rely or
charters for the operation OF thetl
ships. but the shipping depression has
roat'y reduced the demand for tramps
Even If the tramp owners can operate
| their ships the present freight and char-
ter rates are scarcely enough to offset
working expenses. If they tried TO sell
their ships they could only get a third oil
a quarter of their cost.
The opinion Is gaining ground. there
| fore, that the only means to meet the
| situation is for the tramp owners &c
amalgamate their interests into large
| company and to carry on shipping busi
ness like the other large concerns.