The New York herald., 1922-09-01
CLYDE-UNITED FRUIT
RATE PACT LIKELY
Plan Reached Under Which
Cutting Will Be Eliminated
and Peace Restored.

Means OF bringing an end to the rate
route between the Clyde Line. operating
Shipping Board vessels. and the United
Fruit Company were discussed yester
day when William j. Love. vice-presi-
dent of the Emergency Fleet Corpora
tion. in charge of traffic, met with Will
lam Newsome. vice-president OF the
United Fruit Company. A proposal was
brought up that gave promise of peace,
Mr.. Love said later. but he would have
to find out whether 1t was acceptable
TO the Clyde Line.
1t was understood that under the
plan the fruit company would raise
rates and thus restore profitable oper-
ating conditions. when II might become
possible for the board to sell to the
Clyde Line the ships now operated,
under the managing agent agreement.
In this way the fruit company's objec
tion to Government competition, which
led to the declaration of the rate war.
would be removed.
The Shipping Boards action on the
protest of the American Steamship
Owners Association against Government
competition in the intercoastal trade
would await the receipt Of questionnaires
that had gone out to the various inter-
ested lines, Mr. Love said. He described
the QUESTIONABLE as voluminous. and
said that probably three weeks would
be necessary TO supply the data called
for.
Coincident with the decision whether
or not to withdraw from the coastwise
trade. Mr. Love said, the board would
consider the proposal of the private
lines that the Government agency under
take the regulation of rates on the coast
to coast route, and thereby bring about
an end to the rate war under way for
several months. Mr.. Love said he
thought this an excellent idea. but moth
ing would be done for the time, as the
lines would have TO flight IT out
while longer. Reports yesterday were
that the important canned goods rate
on eastbound business had declined 70
Just one-third its former level, while
bookings were being made by ct least
one organization, the United American
Lines, as far ahead as June 80, 1928.
Mr.. Love cited this as an instance of
the bitterness with which the struggle
was being waged.
Mr.. Love emphasized that although
the board considered favorably the regu-
lation OF intercoastal rates IT. nad no
desire to take similar action with respect
to offshore rates. He said he had been
much encouraged by the progress made
by the Far East lines toward an agree
ment on a s25,000 forfeit to guarantee
adherence to conference tariffs and rul-
ings Virtually all the difficulties were
smoothed out yesterday, and at meet
ing this morning it Is expected the pro-
ject will be formally approved by all
the members. The Barber Line, which
had threatened to withdraw from the
agreement il it were not concluded be-
fore September 1. agreed to the post
ponement of final action to to-day.
IF all goes as / anticipate. for the
first time since the war the shipper will
be positive that he Is getting the same
rate as his competitor" Mr.. Love said.
'The new conference organization viii
be great thing for shipper and steam
ship man alike, at least until we can
raise a new crop of the latter that do.
not have to be bound by cash forfeit.
Mr. Love said he thought similar
action would be taken by the trans
Pacific lines.