New-York tribune., 1922-09-03

/ years, the worst within the memory
/ of steamship men, has passed the turn
4 and that the trend now is slowly but
! surely toward better times. This is
true particularly with regard to
| freight vessels. The passenger COM
oeflation and must face the issue next
/ year, but cargo ships have borne the
full force of postwar reaction and
4 have weathered the heaviest effects
of the storm The sky is now clear
ing. No general revival is yet in sight,
but by gradual progress a return to-
| ward prosperity is under way.
! Passenger rates are still double the
! 1914 level. The trend here is down
/ ward Freight rates, on the contrary
approximate the pre-war figures, and
| IN some instances are the lowest IN a
generation. The succession of rate
wars in the last year have failed to
send them below recent levels, with
the result that most of the changes
recorded within the last month or twt
| have been upward
Veteran steamship men like Robert
| Dollar and Edgar T. Luckenbach are
/ quietly buying bargains. There is no
! better indication that the outlook for
the future cannot be worse and that
it probably is better.
Recovery lis Certain
The steel industry is proverbially in
the prince or pauper" state. The
simile might be applied with greater
/ correctness to ocean transportation. No
industry, with the exception Of the
munitions business, has left heavier
defation in the last two years than
! shipping. The difference is that mer-
chant vessels are a necessary adjunct
| to commerce in times of peace and
that recovery from undue depres-
| sion is certain.
Wages in shipyards and on board
| vessels have reached bottom and in
fact are now stronger than year ago.
The cost of construction here and
= abroad reached low levels early this
summer, which probably will not be
touched again in several years. Cargo
rates on the average have passed their
lowest point. Recent sales of ships
snow revival from the bankrupt
prlces accepted during the winter of
WI. Foreign commerce is gradually
creeping up and will be accentuated
to greater extent when 8 solution
or the financial difficulties of Europe
| is found.
Rate Conference Restored
One of the features of the freight
business in the last month or two has
been the restoration of rate confer.
ences. Under the shipping act of
1915, steamship lines were authorized
to combine for the maintenance of
| rates and the adoption of uniform
! rules IN handling cargoes, subject to
M the approval of the Shipping Board.
| when ocean transportation was profit
aoie the. conferences were kept on a
solid basis, but when the trend turned
and tramp steamers began to get more
,. and more of the trade from the berth
| liners, the result was the collapse of
| the various combinations.
| Within the last wear practically
every trade route has been the scene
| OF rate war, accompanied by whole
| sale bankruptcies of weak lines and re-
| ductions in rates below the cost of
| operation. The best illustration of the
situation is the fact that companies
| operating United States government
vessels have been cut down from 1870
at the peak of prosperity to thirty
| eight at present.
| After period of UNDERSTANDING COM
petition, In which every company has
had enough for free-lance warfare. the
tendency now is toward renewal of the
conferences. Among the trade routes
where the lines have come together are
| the Spanish Portuguese, the Levant.
| the Brazil, the Far East, the Pacific
| Coast Westbound. The situation in the
| intercoastal and Colombia trades is
rapidly approaching settlement
though this may be delayed for
| mo onth or two.
Rates Are ON sable Basis
Open competitioT still prevails on
! the services to the United Kingdom
and the Continent of Europe, two of
| the most important routes, but rates
are practically on stable basis and
| are not expected to go lower.
| Unusual conditions prevail in inter
coastal trade, in which the law allows
only American vessels to participate.
Depression in the overseas traffic,
owing largely to the cheaper competi-
/ tion of foreign ships, forced vessels
| under the United States flag to crowd
into the coastwise business, with the
result that the conference collapsed in
June. Rates are now SO to so per cent
| lower Coincident vith the reduction
has been the demand OF the American
/ Steamship Owners Association for
withdrawal of the Shipping Board
| steamers, and the request of many
/ lines for government supervision of
| rates. The board is expected shortly
! " tHAhe ltS decision TO eliminate Its
| competition with private boats, and
/ may also seek to bring about official
| control of freight tariffs.
! A significant development of recent
months. which holds out hope of stable
conditions in ocean trade, is the
| movement toward the posting of cash
forfelts by steamship lines to guaran-
| tee the maintensnce of rates To make
the plan effective every company on
| each route must give its consent. Con.
summation of the idea has been de-
| layed by the rate wars, but conditions
are now becoming more favorable. The
| Shipping Board is supporting the
| scheme vigorously and hopes gradually
to extend 1t to all important services.
/ To Post Cash Forfeits
/ The central feature of the plan il
/ that each company shall post $4,000
/ in cash to indemnify other conference
meHbers against any losses that may
result from violations of rate agree
ments. While headway has been slow
1 there is a strong belief that in the near
future it will become effective ON the
! Far East, NContinental and east coast
of South America routes and will be
! followed in other services.
The outlook for American shipping
depends TO large extent upon the
actions Of the Shipping Board and
| Congress. The board has 100 steel
/ ships which it hopes to sell. Until
| some disposition is made of this enor-