New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-05-13
UNITED Fruit Co.
Will Give Ship
Board a Battle
TO Project Our American
Vessels Against ( nfair
Competition TO Colombia.
Asserts William NewsOme
Lasker Policy Assailed
Government Called Heavy
Loser OH Tonnage L. Has
Allocated to Clyde Line

THE United Fruit Company must
take steps to protect Us American YES.
seis agains. Shipping Board competi-
tion." William Newsomc. vice presi-
dent of the company in charge Of op-
erations, said yesterday. This was his
reply to the decision of the board not
to withdraw its service, managed by
the Clyde line, in trade between the
United States and Colombian ports.
He said that the company had not yet
determined what action would be
taken.
''The decision OF the Shipping Board
Of Chairman Lasker that the board
would not compete with private Amer
lean lines" he continued
The answer of the Shipping Board
to the protests OF several steamship
lines against its Clyde service was ne
surprise to officials OF the companies.
and it failed to meet their objections.
Mr.. Newsome said tiacro would be Gin
teresting developments IN the next
two or three weeks
Other concerns which joined in the
protest were the Oriental, the Carib-
bean and the Grace lines. Replying to
the charge made by the board that the
Oriental and the Caribbean operate
chartered vessels under foreign flags,
Mr.. Newsome said that they bought
ships from the board. but were unable
to run them at a profit and had to take
foreign tonnage to continue in bust
ness.
"We did not object to the contract
which the board made with Di Giorgio
at jamaica he added, "but we did
oppose extension of its services to Co
lombia to diminish its losses on the
Jamaican trade. The board entered
INTO an agreement with Di Giorgio to
carry his traffic for year at figure
that works out about 50 a ton, while
the actual cost of operations is about
S15 to SIC ii ton. 1t is no wonder that
on this basis Di Giorgio was willing to
transfer his business from foreign to
Shipping Board vessels. But why does
the board insist on competing with our
American flag ships on the Colombian
route?
we can prove that our four vessels
can handle all the trade from Colon
bia. We have operated at loss there
since the war, and now two govern
ment organizations. the Panama Line
and the Clyde Line, are taking traffic
away from us.
"Mr. Love brings in all the West
Indian ports as an excuse for continu-
ing the service. We did not mention
the other ports, but protested only
against this particular service"
Mr.. Newsome commented that one of
the Shipping Board vessels which ar
rived in New York last week had wait
ed from Tuesday to Saturday to pick
up 300 bags Of coffee. The entire serv-
ice, he added, is run at tremendous
loss. This cost, he declared was paid
BY all the people Of the country. and
the United Fruit Company, which has
paid great sums in taxes to the govern
ment. actually was helping to pay the
losses incurred by the government line
IN undermining its business.
The Shipping Board service, it was
said, never would build up an Amer
lcan line on that route and there was
little justification for the excuse that
if the government ships were with
drawn part Of the business would re-
turn to foreign ships.
Backed by U. S. Capital
Mr.. Newsome said that the United
Fruit Company was operating a num-
Der of small, speedy. light draft Nor
weg1an vessels in various West Indian
did not have boats to compete with
these ships and the company was un-
able TO operate at profit under the
American flag. at must be remem-
bered,' he added. chat it is American
capital which is running these ships. y
The United Fruit Company owns
thirty-five ships. OF this number TWEEN
ly-two are under the American fsg.
Twelve under the British and one under
the Norwegian flag. 1t charters twenty
boats under various foreign flags. It
mas -FOUR passenger and freight steam
= ers; OIL burners. of about 5000 tons
each, on a weekly schedule between
the United States and Colombia.
The Shipping Board announcement.
prepared by W. j. Love, vice president,
IN charge of traffic, stated that while
there was competition with four Amer
lcan ships, its service in other direc.
;ions was more important Out of TWEEN
ty-clght ports, Mr.. Love said the board
had foreign competition only at twenty
FIVE ~ lazy