New-York tribune., 1922-10-20
United T ruif Co.
PlansSI,owtloWn
With SllipBoard
Newsomc Wires Love for In
formation on Clyde Line
Service; Charges Scheme
10 Transfer II. S. Vessels
Seeks an End to Parleys
New Move i'm Rate War Re
opens Controversy; Cargo
Contracts AGE Denounced

A new move to bring q showdown
with the Shipping Board in the Coionl-
bian rate war was made yesterday by
William Newsome, vice president Of the
United Fruit Company, who wired Vice
President Love cf the Emergency Fleet
Corporation. for definite information on
the plans of the board.
In statement late in the afternoon
Mr.. Newsome, in effect, charged that
the actions Of the board and its OPP
Grating company, the Clyde Line, did
not conform to the declaration of Mr..
Love that he was seeking an amicabie
settlement with the United Fruit Com
pany. Mr. Newsome cited the reports
that the board has offered to sell ships
to Colombian company for the trade,
saying that this would mean encourage
ment 20 foreign line against the in
terests Of American fag vessels.
Mr. Newsome also charged that the
Clyde Line was making long-term con-
tracts for the government ships, ap-
parently with the idea of making it
necessary for the board TO continue in
operation, while reports were given to
the press that they contemplated buy
ing the vessels themselves.
While the United Fruit Company did
not announce what action would be
taken IL the board refused to come to
an agreement, it was intimated that the
rate war would become more drastic.
Rates are now about one third Of the
figures quoted six months ago when
the United Fruit Company withdrew
from the Colombian conference as a
protest against the Shipping Board
competition with private American ves-
sells The board refused to abandon
the Clyde service on the grounds that
this would be largely for the benefit of
foreign lines. Since that time the
: Oriental Navigation Company has been
forced TO abandon the trade, and the
Caribbean Steamship Company has
been driven into bankruptcy.
81 noticed in your paper couple Of
weeks ago that Mr.. Love had indicated
that possible early adjustment Of the
difficulties which led to our withdrawal
from the Colombian branch of the
West Indies conference was pending"
said Mr.. Newsome. "This is all news
: to me, as Mr. Love has not communi-
Gated such information to our company.
There are rumors afoat that the
Clyde Line may possibly purchase the
steamers that are now allocated to
them and proceed to carry on the bust
: ness under Clyde Line ownership How
ever, their action in the trade in max
ing long term contracts for the car
riage of freight at the present ruinous
rates does not signify that they con-
template IN the very near future TAX
ing over this tonnage, but would indi-
cate that they ere again tieing up the
Board in order that they may continue
operating these vessels under the man
agement and operation agreement.
"ft is also rumored that three of
these vessels are being offered to
Colombian inte ests with the under
standing that the Board is willing to
transfer these steamers, if Sufficient
capital can be raised by Colombians, to
the Colombian flag. This rumor,, if
true. signifies that Mr.. Lasker is will
ing to overlook the fact that the CO.
iombian trade must be tonnaged ex-
ciusively with American-hag vessels
and Is very much of rub on the
companies that have been eliminated
from the trade because they operated
foreign tonnage. It is also rough on
the American company that offered to
buy two of these Shipping Board ships
> to be operated III the Colombian trade.
whose offer was refused by the Shin
ping Board.
I'VE wired Mr.. Love yesterday that.
as the only privately owned American
line operating in Colombia. we would
be keenly interested in being advised
as to what developments were transpir
'sg in connection with the withdrawal
OF the Boards vessels, and as vet have
had no reply"