New-York tribune., 1921-01-31
1reat Is Made
he Rate War by
Japanese Lines
ritish Report 3 Leading
Companies In japan VIII
& Act If Merchant Marine
legislation Is Enforced
Viii Leave Conference
jsysre Struggle ON Pacific
Forecast as Answer to
Preferential Rail Rates

q Avere ocean freight rate war on the
s lseisc IL threatened by Japanese ship
81. interests II the American mer-
ant marine act is enforced, accord
j as to statements appearing in English
Publications.
aThe three leading Japanese ship
s,ny companies, the Nippon Yusen
fa;sha, the Osaka Shcssn Kaisha and
a. Toyo Kisen Kaisha," says the Eng
8ah shipping weekly, Fairplay, tan
,ouncs that, as a protest against tho
6 United States Jones law on the mer-
ecntile marine. they will withdraw from
he China Pacific conference as soon
a the law comes into force. 1t may
ka expected that there will be severe
struggle in the Pacific immediately
after the Jones law enters into effect" I"
4 The merchant marine act was en-
acted in June last, but number Of its
provisions have not yet been enforced,
iueludine those for the establishment
S a preferential rail rates on goods ex-
uorted and imported in American ves-
sels and for the modification Of COM
naercial treaties with other nations to
enable the institution Of discrimina-
tory duties and discriminatory tonnage
dues in favor of American shipping.
The plan for preferential rail rates,
especially, has aroused much opposi-
tion in Japan, shipowners there fear
sSing the diversion to American vessels
Of much trade now carried by them.
Coast Shippers' Attitude
For some time opposition to pref
erential rail rates was also expressed
By number Of American importers
Af:.exporters on the Pacific Coast, but
this sentiment has changed and hos
tility to the plan is now chiefly on the
part Of foreign shipping interests. The
matter Of preferential rail rates was
4 made an issue In the campaign Of Sen
ton, but the chief sponsor Of the mer-
chant marine act was returned to the
Senate by good majority.
Efforts made by the Japanese gov
ernment to effect merger of the lead
ing shipping lines Of Japan have been
generally regarded as q step to bring
about concerted action against the ef-
fects of the Jones bill, but it is now
announced by Fairplay that the plan
has been definitely abandoned, it hav-
ing been found that the diversity Of the
interests and the trafics of the COM
panles in question made such q con-
centration impossible"
Reports that some of the Japanese
( lines would give up services to Pacific
ports Of the United States and make
their headquarters at Vancouver B.
G., have been denied by officials Of the
In regard to the threatened with
drawal from the China-Paciflc confer
srce, shipping men here point out that
there has already been cutting Of con-
ference rates by Japanese lines on the
Pacific Coast.
y Drop In Pacific Rate
Reviewing Japanese shipping in 1920,
Fairplay says:
"On the Pacific service the demand
% outward voyages was extremely dull
on account of the excess Of tonnage
caused by frequent sailings Of steam
efs built for the United States Ship
ping Board and also the resumption Of
services by foreign lines, coupled with
heavy ALLEGATIONS of Shipping Board
steamers in this trade. The freight
rates dropped as natural consequence
in fact, cargo space for the United
States was sold at $3.50 gold per ton
and even at 50 for tramps.
"The condition Of affairs went from
bad to worse early in 1920 and the re-
action was keenly felt by Japanese ship
owners, and more especially by tramp
owners. who had enjoyed unparalleled
prosperity and reaped huge profits,
thanks to the war conditions.
'It is needless to add that while the
American merchant marine act remains
3 menace to Japanese shipping and
allied industries, owners trading in
Importance of cooperation at time
like this. The twelve Japanese and
American lines have established Jap
an-Pacihc freight conference.
Japan's Shipping Problem
"How to maintain the position Of the
Japanese mercantile marine, which to-
tailed about two million tons before
the war, but has since increased by
about 6b per cent. is the question
which Is seriously exercising the minds
Of shipowners.
"The rise and success Of the Japanese
mercantile marine in it's early stages
we're due to encouragement of naviga-
tion and shipbuilding by granting sub
sides, but Japanese owners do not now
believe in the development of shipping
by such means, and although they are
now receiving something like 5000, 900
yen $4,000 O00) per annum for various
lines they think they arc better with
out them in view of the many require
ments and restrictions imposed by the
government. It may not be going too
Tar to state that Japanese owners may
decline to receive subsidies at all in
the near future"