The New York herald., 1922-07-10
CALLS U. S. FREIGHT
STATEMENT FALSE
Shipper Says Ocean Tariffs
Were Quoted on Dissimilar
Goods.

The question of ocean freight charges
export markets OF the world is being
hotly debated in shipping and trade
circles following the publication OF a
comparison by the Department of Com
merce tending to show that freight costs
to the American exporter do not mate
rally differ from those to his foreign
competitor.
G. e. Bell, president OF the c. s. Bell
Company. manufacturers Of agricultural
machinery. in a statement to THE New
YORK HERALD charges that the Govern
nent report ignored freight rates to
Mexico and Central America and that
in comparing tariffs from Hamburg and
Liverpool with those from New York
rates were quoted on dissimilar COM
modities. He continues:
'I have prepared a true comparison,
with rates all given on agricultural i'm
plements and machinery. This shows,
for instance. that we must pay $20.16
from New York TO Vera Cruz G.973
milcs) and $3.50 from New Orleans TO
Vera Cruz. (7SS miles) while the same
freight is carried from Liverpool to
Vera Cruz for $3.50 and Hamburg to
Vera Cruz for $3.50. From New York
10 Rio de Janeiro, 4.74S miles, the rate
is $40. as compared with 81 from Ham
burg, 5,519 miles. and $500 from
Liverpool.
This vital matter has been taken up
with Washington by the National Asso-
citation of Farm Equipment Manufactur-
ers, but without success. Nothing seems
to be Of Importance except tariff. bonus
snd subsidy. In all the discussion OF
a ship subsidy the very persons most
Interested American manufacturers and
exporters. are not considered-simply the
American flag on the seven seas and a
dividend to stockholders"
II. T. McNiece. assistant traffic man.
ager for the United Fruit Company
asked to comment on Mr.. Bells state
ment said as follows:
finland shippers always make the
mistake OF comparing ocean freight
rates solely on the basis Of distance
travelled, whereas the fact is that port
charges and loading and dischargine
costs are as important as fuel and
maintenance costs. and do not vary with
the length of the voyage. Terminal ex-
penses at New York or New Orleans
are far higher than at Hamburg OF
"Any one acquainted with the facts
knows that American shipping is not
being operated at a profit, and it is
simply unreasonable to ask us to dc
business on the same basis as the Ger
mans, who are favored by the disorgan-
ICED state of their exchange. Further
more, German railroads, export houses
and steamship lines are working closely
together for the rehabilitation of their
country's trade, whereas here exporters
are at loggerheads with the steamship
companies and rail rates are controlled
by a Government body.
1.-The proposed subsidy is too small to
more than bring American operating
costs nearer to the level of British costs
but the fact that 1t cannot be reflected
In a heavy cut in freight rates Is nc
excuse for opposition from shippers.
Where an American exporter Is bid
ding for a contract against foreign COM
petitors we give him a special rate II
necessary. but a general reduction in
tariffs cannot come until shippers start
a real movement of freight When we
have but a few hundred tons Of cargo
for a large number Of different ports
our rates must be proportionately high.
As a matter OF fact. the differentials are
not nearly as serious as has been stated.
Many of the German rates on machinery
are paper rates. applying to articles
designed and packed differently from
any produced at all over there"