New-York tribune., 1921-02-06
Rate War ON
lis. Planned
By Ship Men
hartman Warns Board
Must Change Policies
That Menace Existence
Of the Merchant Marine
Price Readjustrnent
Is Called Essential
Labor Laws Also Must Be
Altered, He Says at Re-
nublican ClubLuncheon

Private shipping interests are about
!, throw down the gauntlet and enter
,,to rate cutting war with the United
sts.es Shipping Board unless the board
,oaifes some of its policies, which
.sresten the very existence OF an
american mercantile marine, William
lyerell Hartman declared yesterday
a. luncheon of the National Repub-
Nsap Club. Mr.. Harriman's attack
,oIlovei 8 defense OF the board by
IA chairman, Admiral William S. Ben
son. Frank A Vanderlip was another
speaker.
Mr, Hartman, who is chairman Of
.be board Of directors of the American
ship and Commerce Corporation, made
kpown that the American Hawaiian
Steamship Company, in which he is in
terested, is about to serve notice on
lie government that unless it with
draws Shipping Board vessels from
competing with the Americana Hawaiian
careo carriers the company will de-
rOunce the conference agreement on
rates.
81 realize" he said, "that it will
mean stalking our treasury against the
Treasury of the United States, but I
think we will win out, nevertheless.
You know, we control the return car
GOES, and return cargoes are the es-
ssnce Of shipping profit. We are going
% have meeting with Shipping Board
officials Monday and inform them of
cur attitude.
None Making Money
eTbe American Hawaiian Line has
tgenty-six vessels in the trade and has
Been carrying cargoes for twenty years.
When we entered the war these ships
we're turned over for use as trans
@rts, and afterward were returned to
taeir original trade. The Steel Cor
poration and the Luckenbachs also
have ships in the same trade, and
then the government came along and
Put in lot of its own tonnage.
"As a result, our ships and those OF
the Shipping Board are only half-flled.
No one is making any money and even
the shipper is not saving dollar,
because the conference has fixed rates
which cannot be cut. The Shipping
Beard has made an agreement with US
on rates and is maintaining those rates.
So we are going to tell the govern
ment that we will get out of the cen
ierence unless it takes its ships out
af the trade
While Mr.. Hartman did not say out
light that other private shipping in
ierests planned similar ultimatums TO
be government, an inference that such
sas not far from the truth was drawn
rom his statement that all the Amer
iean companies which had been estab-
'ished in the carrying trade before the
sar we're faced with the same i'm
nlnence OF disaster through Shipping
yoard competition.
Many in Receivers Hands
The other class of ship owners" he
Sesumed. consists of those who bought
vessels from the Shipping Board dur
;ag tae war. They are either in the
aands Of receivers or drawinn on their
surplus laid up in the last few years
~ meet expenses. 1t was generally
conceded at the time that the nyice
assed for these ships was excessive. but
" sne government insisted on the figures
e.,. Isa set, and, moved by patriotism in
u'hy instances, the purchasers paid
Tom 10 to % per cent down ana agreed
lngs 0N' - 'iieii earn
Now the government must either
Ieep these part payments and take
gaek the ships besides or else readiust
nc prices: believe the prices will be
sos ,esu!usted But if they're not. we're
NJ. gong. to have any merchant
u ;,Aaine' II the government persists
n eAactlng Its pound of flesh and fails
ssn 'aify out its promise to do what it
esn,9. ~ pulld up privately owned mer-
ysat 'ie s marine the public will not in
mass ats capital in the hazardous bust
aeSs rs OF shipping"
yota Gas OF three remedies must be in
ran 'u, & Mr Hartman averred. if Ameri-
ror. 'eoseis are to engage In successful
'7sltion with foreign bottoms.
=, Wants Labor Laws Revised
NJ .ag iirst, he said, was revision of
labo, 'sws and regulations governing
IN sns ana inspections. The second was
iir.s,a, ,aq,rect a. subsidy, and the third a
usione are told" he continued, Chat
cbsua bDa labor will never stand for a
ss "se as IN the regulations. 1t seemsto
It i oh net iaoor might consider whether
ss : NOT, nor, IN protecting few, hinder
.he employment of a great manv
nsns right have these few men to de-.
'3 more pay and better conditions
tCcnt'nusd on page thrcel