The New York herald., 1921-10-07
COYTONFREICHT WAR
With BRITANSTARTS
u. s. Shipping Board to Cut
Rate From Egypt to
England.
TO ADJUST INSURANCE
British Steamers to Be Re-
British Steamers to Be Re-
fused Entry Here With
Egyptian Product.
BIG COMPETITION FEARED
Alexandria Says American
Ships Will Reduce Terms
for General Cargoes.

! LONDON, Oct. (Friday) The Lon
don Times learns in connection with
the Egyptian cotton freight contro-
vcrsy that information has been re-
ceived from Alexandria that the
United States Shipping Board is pre-
pared to carry cottonseed to the
United Kingdom at freights shilling
per ton below the British rates. and
Is further prepared to pay the differ
ence between the rates of insurance
charged for cargo carried in American
vessels and the lower rates of insur-
ance quoted for British steamships.
The Times supplements these advices
with lengthy review of the controversy,
giving what 1t says is the British ship
ping position. For many years past, it
says, the custom of cotton merchants
has been to make yearly contract with
British lines for the shipment of all their
cotton to the United Kingdom and the
United States. Early last year the
United States Shipping Board showed
interest in the contract. It's representa-
tives at Alexandria put forward the de-
mand that the whole OF the United
States direct shipment should be left to
Shipping Board vessels. and further de-
clared. says the Times. that unless the
demand was complied with rates would
be cut In all directions.
The Times then relates how the Brit
ish lines secured the contract until Au-
gust 81. 1921, and later, after the Brit
ish and American tenders had been sub
mitted, the contract also for the 1929
season. This latter contract was ac-
cepted, although the quotation OF the
British lines per ton for United King
dom destinations was shillings higher
than the American. Then 1t was alleged
that improper methods were used In Sc
curing the contract, after which nego-
tiations were begun between the Ship
ping Board and the British lines. The
Times declares that these were virtually
satisfactorily completed when stopped
by instructions from Washington.
The review continues: 1T now seems
that under the Jones act, because the
British lines refused to give up almos,
their entire American rights under q
contract which they obtained Sin open
and fair competition and have held fol-
many years. their steamers may be re.
fused the common right of entry into
ports OF the United States with cargo
from country under British influence
1T further appears that active conpe-
tition Is to be started, and it is reported
from Alexandria that American ships are
to be loaded for United Kingdom ports
with all descriptions of general cargo al
cut rates. This seems TO suggest tha,
the United States Shipping Board Is con-
templating ruinous competition be-
tween ports other than American. In
which American exporters and importers
can receive no possible benefit.
"Some explanation would appear
needed as to why tire United States
Shipping Board is not permitted to &C.
cept the reasonable proposal OF a halt
share in direct sailings from Alexandria
to the United States. which was volun-
tarily made to the board by the British
lines several weeks ago. more particu-
larly as the points OF controversy had
been reduced to such a narrow Issue"