New-York tribune., 1921-01-24
Rate War Hits
Direct Trade
With Britain
f.rsoes Sent to France and
Transshipped to England
10 Secure Advantage of
French Freight Cutting
Governments in Contest
No Signs of Upward Trend
in Rates Seen; Shipping
Men Are Still Pessimistic

Nj evidence of an upward trend in
Ism freight rates is manifest. A fair
s.rnle of existing conditions is fur
.;.Sed by the frequent additions to
i. Shipping Boards vessels laid up for
issk Of cargoes that can be carried at
profit.
fhere is no abatement of the rate war
l a, shipments to Continental European
aorts, which was inaugurated by .he
rsnch Lines cutting of rates when the
I shipping Board placed what the line
/ ,,ssrded as an undue amount of ton
,.se on the French berths
With the lines in the United King
dou conference continuing to main
,sin rates, the slashing of freights to
a,her European ports is having
MARKED effect on the trade with Great
Britain.
Gain by Transshippinx
Some shippers, for instance, are
inding that they can get cheaper rates
+ il. instead of shipping direct to Brit
. sh ports at conference rates, they take
! pdyantage of the cut rates to Havre
snd have the goods transshippei from
! there to British ports, thereby saving
money despite the extra handling of
cargo. This is reducing The already
ruch reduced direct trade to Great
blitain.
The rate war in the French trade is
chiefly contest between the govern
ments Of France and the United States.
Ths Shipping Board, standing behind
It's vessels, is regarded by independent
operators as running at loss, which
most private companies would be un-
1be TO- sustain for any lengthy period.
On the other hand, the French govern
ment reported as being in sympathy
With the policies of the French Line.
sad it is pointed cut that the low rates
quoted are beneficial from the stand
point Of the French importer and ex-
porter, and therefore, in line with the
efforts Of the French government to de-
velop the trade of the country.
I Shipping Men at a Loss
Shipping men frankly admit that
tney are at sea as to when a change
for the better in fre ght rates can be
looked for. A. G. Fetterolf, freight
In'hc manager the international
MERCANTILE Marine Company, for in
s.anee, says:
Whether the lowest point has been
reached or not in the present freight
iltuat,on no man can say, however +
great his experience. One mans guess
sas good as another's. A group of
ssw York leading freight men the
taer day discussed the probable time
tl,t must pass before an upward swing
III De noted. One thought it would
come in six months, another in two
years. conservative member of tho
party ssid one year. The situation
Dames Inc most experienced observer.
ne clements that enter into it are
nlpfe diverse and more complex than
lave ever before come under the OBJ
sefvatloh of freight experts.
All Interests Affected
Inc largest shipping concern to-day
. the united States government. op-
s's1 ng publicly owned ships Of the
merchant marine. Much of the new
,onnage is unemployed. Steamers must
Y iaid up when there is no employment
''s them. The old established lines
ore not obliged to lay up as much ton
age IN proportion TO their holdings as
we newer and weaker lines, or the gov
;heless. S0'' ''o
'one thing is certain. Better busi-
-sss cannot be created by cutt ng rates.
Low rates Go not produce ca q ,es when
sas oaslc laws governing the movement
~ ssoaS are operating in restr ction OF
s.aue. IN tact, rates should be held
.m, Tor 1t IS sound general prin-
ss'e that when cargoes are moving the
a.neienee between a profitable and an
anpfontable freight fate has no effect
apon their movement"
ihs only basis for optimism among
sa.p owners at present, according to The
t'sus ca Gazettc, is tie reported in
sasIslai revival in various parts of the
esantiy, number Of plants having re-
opshed IN response to a better demand
manufactured ~ goods. REP orts from
.,is'gn markets show, however," it is
a.osa' s' mat stocks are being gradually
sspletea, and that when the present
.aaahcial cris has ended there is likely
% oe some good buying.
Pacific Coast Better OFF
Reports from the Pacific Coast indi-
s... a : i ehlp owners there are much
Dss'si on than those on the Atlantic,
sss sss export movement Of grain, lumber,
t,.ui1, cotton and other commodities
Isamng been in good volume
the present time grain and
.ia ssnsr ioodstuifs, combined with certain
.sssss Of raw materials, continue to
sne most important factors in
nmsnean export trade. A heavy grain
pe.sin p.vsssimsnt mas been in progress through
,..,.s, ,vs,aand, Me-, to European countries,
~. si..aoing Greece. The Gulf ports are
= ~ aoing thriving business, and it
T. osaeved that the current season will
rs. ss prosperous as last years, when
sis.y ao9p0 bushels weic exported
'-''agn Galveston alone"