Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-02
COMBINE IN EGYPT
BARRING U. S. SHIPS
Powerful British Union Keen.
ing Cargo From Ameri-
can Vessels.
TENDING TO RUIN TRADE
Agreement With Association Of
Cotton Exporters Throws
Business to English.

oUSA0SSS 10 E0gUS0.
BY HIRAM X. MoDERWELL.
By Cable to The Star and Chicago Daily New,
Copyright 1920
/ ALEXANDRIA. Egypt, January L.
A powerful British shipping combine
Is keeping American shipping and, in
consequence, is tending to keep
American trade. out Of Egypt and
most of the eastern Mediterranean.
Recent determined efforts on the part
OF Americans to obtain their share of
the trade have been thwarted by
courteous but efficient Britishers.
Unless future efforts are more sue
cessful the American flag is in danger
OF pretty nearly disappearing from
these waters-and with 1t will dis
appear most of the possibilities for
the rich Egyptian trade which might
be flowing to the United States.
harbor, two or three or i've or six at
time-in all, fully 100 q year. But
cargo.
This is because the British shipping
trust. known as the Conference
lines" has an annual agreement with
the Association of Cotton Exporters
in Alexandria by which the members
Of the association pledge themselves
not to ship q pound OF cotton in any
but conference bottoms. II any
member Of the association (and all
exporters have to be members Of the
association) broke this rule he could
not afterward do business in Egypt.
Hence. American ships carry no cot
ton out of Egypt.
+ Other Losses Than Freight.
Last year the United States inn
ported quarter Of Egypts output
And every pound was carried by q
British ship. AS a corollary to the
Conference agreement all this cotton
was insured by British insurance COM
panies..
The loss of this enormous amount
Of freightage is in itself serious
enough. But it is only the beginning.
For instance. premiums on the cotton
insurance amount to more than
Cotton is the only substantial ex-
port of Egypt to the United States.
There are other exports. such as
onions and ivory. which are valuable
/ in themselves. but which must. form
only the surface Of the ships cargo.
without a substantial cargo such as
, cotton furnishes for ballast, ships
cannot safely navigate. Therefore
American ships have actually been
obliged to buy sand to ballast them
on their homeward voyage. 1t may
be said, with only minor reservations.
that every American ship leaving
Alexandria goes home empty.
| But this is far more serious than
1.-THE mere loss Of SO much freightage.
For every day a ship goes without a
profitable cargo she loses upward of
| 81, 600 1t is impossible to maintain
| transatlantic ships which are. losing
money at that rate for twenty, thirty
or forty days. II the situation con-
tinues it means that practically all
American ships to this part of the
world must be taken off. That means
not only the loss of the homeward-
bound shipping profits. but of the
Ioutward- bound as well.
But it means still more. Without
American ships American trade with
Egypt will become negligible.
SumminR Up the Losses.
The upshot is this: That a British
shipping trust is making impossi BILE
! American shipping in the eastern
Mediterranean. is causing continual
loss to the United States Shipping
Board. where it might be registering
profit; is increasing the price of tex
tile materials and products to the
American manufacturer and consumer
and is endangering American trade in
all this portion Of the world.
The British conference lines agree
some form it has been in existence
for sixty years. But only with the
enormous increase in the American
| mercantile marine due to the war
did it begin to have a serious bearing
on American interests.
American efforts to save American
shipping in this part of the Mediter-
| ranean have not relaxed, but il the
British hold is to be broken American
firms must know how to buy in Alex
andria. instead of buying by the more
convenient C. it, Boston. The con-
ference hold is powerful, and there is
behind it q fund, said to be $500. 600, :
600, to maintain 1T and kill off rivals.
Still there is nothing to prevent the
buying Of cotton by American agents
in Alexandria and the shipping Of this
cotton In American ships, insured by
American companies and financed by
American banks. to American buyers
In American ports. Several American
merchants have. already shown. q de-
sire to enter the game. and the re-
luctant consent Of some American in
surance companies has been obtained
to insure the cargoes. Shipping boa I'd
vessels will carry the cargo, but so
far there are no results.
Americans here insist on the need
of an American bank in Alexandria
and on regular insurance service
(for it is to be taken for granted that
British insurance companies, on which
Americans have depended in the past,
will not aid in taking business from
British shipping companies). In
short. the business must be American
all along the line. or there will be no