New-York tribune., 1921-02-03
Government to
Run Iroopslnil,
In Cargo Trade
War Department TO Devote
Buford Exclusively TO
I. Carrying Passengers and
Freight i'm the Pacific
Shipping Men Protesting
Extension of System Seem
as a Serious Menace 10
Privately Owned Tonnage

That the transport service of tho
War Department will in the future
carry freight and passengers in
preference to American troops, is in
dicated, shipping men say, by an am
nouncement made yesterday by the
transport service in San Francisco.
-. According to this, the United States
Transport Ruford, now en- route from
New York to Honolulu, will be use i
in the future exclusively as a passen-
ger and freight steamer between the
Hawaiian Islands and San Francisco.
"The Buford," it is stated, "will carry
no troops, as the passenger and cargo
services have grown to such propor.
tions that they demand complete use
OF the transport"
Extension OF the present xvs+ar,
whereby the government operates ;ts
vessels in competition with priyatelv
owned American tonnage is seen in
this move by shipping men. In addi-
ticn, they say, it foreshadows in
creased competition in the ocaan
carrying trade between two branches
of the government, the War Denart.
ment and the Shipping Board. as fhe
latter intends to allocate a numher
OF its 635-foot passenger and carro
liners for service in the San Francisco.
Honolulu trade. Sailings of some of
ynese vessels are advertised by The
racine Mall Steamship Company.
Other Ships Handicapped
As no account is taken of deprac;a-
non, insurance and interest on invest
mens IN the operation of the War De-
partments vessels these ships are en-
aDied TO operate at figures far below
the operating costs of private TONNAGE
Z and can carry freight and passenpegs
at rates which would mean heavy
losses to other shipping. Under pres
ent conditions the volume of freight is
lar below the amount of cargo snace
available, and the entry of the War
.pspartment into this branch of the
eatrylng trade is regarded as certain
sion
Under the conditions existine At ~ =
close of the war, when shinninr ,vas vas
i,t Mot adequate to meet the demands. The
war department secured permiss on to
use some OF the facilities of it's trans
ports TO carry passengers and freight.
on the understanding that there was TO
DC no competition with privately owned
shipping. This trade was carried on
chiefly with Europe. 1t was not dis
continued, however, when the facilities
of shipping became equal to handling
all the business offering. 44
Numerous protests have been made
by shipping men against the utiliza-
ton OF army transports in the pas
senger and cargo carrying trade. In
one instance, it is pointed out, War
department. vessel was sent hundreds
u miles off it's regular route into the
q duif OF Mexico to get a cargo, and that
IN order to secure the freight the Ship
ping Boards rates were cut sharply.
When protest was made over this it
was stated that the action had been
taken under misrepresentation and
lRere would be no repetition of it.
transports, however, have continued
TO carry cargo on routes where private
and Shipping Board vessels operate.
Under present conditions, where ships
are fortunate to secure cargoes a half
to third of the normal, the merchan-
disc carried by the War Department
boats still further reduces the volume
available for the legitimate carrying
trade.
Disaster in Competition
In the case of the Buford, however,
the War Department, shipping men
say, Tor the first time has diverted
vessel completely from the transport
Of troops to the carrying of passengers
and cargo, thereby squarely entering
z the field as a competitor with the gov
ernments own tonnage and that op-
srated by private American enterprise
An extension of this plan, they say,
can only serve further to depress con-
dltlons in the ocean freight market.
es1 The possibilities are regarded as
especially serious in regard to trade
routes where conference agreements on
ttreights have been broken, for without
the necessity of taking into considera-
ton items of expense which other ship
ping must provide for the War De-
partment vessels are in position to
cut rates to figure which cannot be
&C. me- without disaster to private lines.
1t is probable that action will be
sought of Congress to strip the War
Department of the privileges granted
under the stresseof war conditions, and
the cooperation of the Sh piping Board
In this direction is looked for by ship