New-York tribune., 1921-04-11
Of
HardingWrong, 9,
Ship Men Say
Ieclare Ocean Freight War
Due to Shipping Board,
Not to Lines Seeking to
Crush U. S. Competition
,)yertonnaging the Cause
IN Private Owners Said to
Have Withdrawn Boats
While Board Stood Pat

sb;nning men here are surprised by
.,,orts from Washington to the effect
.sst the President has been convinced
=. =" his advisers that Several foreign
..aons are willing to do almost any
.s;nc in the way of establishing low
les in order to kill off American
..,s ..sr,ne.ition on the high seas"
II as is believed among shipping
IAN here, the Presidents convictions
a,s ars based on advices emanating from
.ss Shipping Board. the situation is
,eSarded as peculiar one.
The costly war in freight rates in
10 trade between American and Con-
s,srtal European ports, which was
ssgun last fall and continued until
.hcnt ten days ago, was caused by
the the Shipping Board itself. it is pointed
mt and not by foreign lines seeking
"a stife American competition.
Blame Shipping Board
As result Of the boards adding
.hips to the French Atlantic route
he berths became so heavily overton-
paged that the cargo space was far in
excess of the cargo offering and the
lines we're not able to secure sufficient
.argo to operate proftably. The
rrench Line, especially, was affected,
and after it was found that the Ship
ming Board would not withdraw any
Of lis vessels the line. followed by
the Lloyd Royal Beige, began cutting
rates and the freight conferences in
she Continental European trade were
dissolved.
During the months of slashing rates
that followed freights fell from half
to a third and even more, compared
With the previous figures. Other lines
were obliged to follow the French Line
and the Royal Beige in the general cut
ting in order to secure any cargo, and
the Shipping Board itself kept pace
with the others.
During the course of the rate war"
said the traffic manager of an American
transatlantic line yesterday, "the
French Line reduced its active tonnage
largely, another line withdrew entirely
from the field and all the privately
owned companies cut down their serv-
ice rather than increase the heavy
losses being made. The Shipping
Board, however. kept all the ships it
had in this service at the beginning of
the war in until the end
wv SouoCu ny IOIciSH LILIES
"The foreign lines did not cause the
rate war and instead of pouring in ad-
ditional tonnage to depress rates they
withdrew a large proportion. They
could not follow the policy of the Ship
ping. Board in keeping empty ships in
service because they have not the purse
Of the government behind them. That
no shipping line wants such rates as
we have had is obvious.
THE chairman of the Shipping Board
has been quoted recently as stating
that If 1T had not been for the great
amount of tonnage owned by the board
rates would have been far higher thar
they have been, and that the losses in.
Cured in operation of the govern
ment's vessels have been more thar
made up by the low ocean freight rate.
which American exporters and import
ers have enjoyed as the result Of al
adequate American merchant marine
The President, however, has apparently
been advised that foreign ship owners
are responsible for the low rates, seek
ing thereby to drive the American
ships off the seas"
Shipping men point out that ship
owners are only too glad of the oppor.
tunity afforded by the tentative ending
Of the rate war to reestablish confer
ence rates on basis that will regain
even part of the ground lost during
the period Of cut-throat freight slash
ing. The tablishment has not yet
been officially ratified, pending formal
ratification from the head Offices of the
French Line in France. In some quar-
ters it is believed that the French Line
will seek an agreement with the Ship
ping Board that the practice Of over
tonnaging berths shall be ended. In
the mean time, however, the new rates
are effective