New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-10
Ship Men Deny
High Rates for
u. S. Exporters
Companies Should Not Be
Blamed for Any Lower
Charges on German and
British Goods, Is View
McNiece Answers Charges
Says Bell Ignores Factor
Of Exchange in Comput-
ing German Ship Tariff

Charges By American exporters that
IN many instances they are compelled
70 pay the steamship lines greater
freight rates for shorter distances than
their foreign competitors are explained
by II. T. McNeice, assistant traffic
manager for the United Fruit Company.
who takes exception 20 statement
made BY c. L. Bell. president Of the
c. s. Bell Company. manufacturers Of
agricultural machinery. and denies that
objections are justified.
I, is pointed out BY the steamship
men that distance is not the only basis
FOR calculating rates. Other factors
are port charges, dues, cost Of opera
ton and the rate Of exchange when
comparison is made with foreign lines.
Port expenses in New York, u vas said.
are higher than they are in Hamburg
and Bremen. as an instance.
The debate between the exporters
and steamship officials arose as re-
suit o. the publication OF report from
the Department Of Commerce tending
20 show that freight rates for Amer
can shippers do not differ materially
from those which their competitors
abroad are compelled 20 pay. Mr.. Bell
declared that the government statement
did not take into consideration charges
from New York TO Mexico and Central
America. and that in comparing rates
from Hamburg and Liverpool dissimilar
commodities were used as the basis.
Bel! Offers Comparison
Il have prepared a true comparison,
with rates all given on agricultural i'm
Elements and machinery said Mr.. Bell.
This shows. for instance. that we must
nav 2eOIG from New York 20 Vera
Graz G.973 miles and $3.50 from New
Orleans 10 Vera Cruz (7SS miles,. While
the same freight is carried from Liver
pool 20 Vera Cruz for $3.50 and Ham
burg 20 Vera Cruz for $3.50. From New
York % Rio de Janiero 4,74S miles, the
rate is SO ~ compared with 81 from
Hamburg l5.5l9 miles and $500 from
Liverpool.
This vital matter has been taken
Up with Washington by the National
Association Of Farm Equipment Manu-
facturers. but without success. Moth
ing seems 10 he Of importance except
tariff. bonus and subsidy. In all the
discussion o. a shin subsidy the very
manufacturers and exporters. are not
considered. simply the American flag
on the seven seas and a dividend TO
stoekholders'
Mr. McNiece. asked 20 comment on
Mr. Bells statement. said:
INLAND shippers always MAKE the
m stake OF comparing ocean freight
yates solely on the basis Of distance
Travelled, whereas the fact is that port
charges and loading and discharging
costs are as important as fuel and
maintenance costs and do not vary with
the length Of the voyage. Terminal
expenses q, New York or New Orleans
are far higher than at Hamburg or
other European ports.
Cites Exchange as Factor
ANY one acquainted with the facts
knows that American shipping 10 not
being operated a. profit and II IS
simply unreasonable TO ask us 10 do
business on the same basis as the
Germans, Uho arc favored b. the dis
organized state Of their exchange
Furthermore German railroads, export
houses and steamship lines are working
closely together for the rehabilitation
Of their country's trade, whereas mere
exporters are al loggerheads with the
steamship companies and rail rates are
controlled by a government body.
The proposed subsidy IS too small
more than TO bring American operating
costs nearer 20 the level OF British
costs. but the fact that Il cannot be
reflected IN heavy cut in freight
rates Is no excuse for opposition from
shippers
Where an American exporter - bid
ding Tor contract against foreign
competitors we give him a special rate
II necessary, but a general reduction
In tariffs can not come until Shippers
start real movement Of freight. When
We have but few hundred tons Of
cargo for large number Of different
ports our rates must be proportion
ately high. A. matter OF fact. the
differentials are not nearly as serious
as has been stated. Many of the Ger
man rates on machinery arc paper
rates. applying 20 articles designed
and packed differently from any pro-
duced az OH over there"