New-York tribune., 1922-04-25
Board Orders Cuts of
$50 10 $50 in South
American Tariff After
Lamport & Holt Action
Chairman Charges
UndcrIlandcd Work
Competitors Object Is
to Drive y. S. Vessels
From Route, He Says

WASHINGTON, April 2A.-~Thc heavy
cuts IN passenger rates to South Amer
lcan ports by the Lamport & Holt
Lines, flying the British flag. was an
swercd to day by the Shipping Board
IN directing that the four American
flag vessels in that trade book pas
sages at figures ranging from $40 to
$50 lower than the competing lines.
In announcing the cuts to meet the
British reduction Chairman Laskcr in
dlcated that the government was pre-
pared to engage in a rate war that
would not terminate until the Ameri-
can flag was predominant in the South
American traffic
The reductions by Lamport e. Holt
were referred to by Chairman Lasker
a s a "declaration OF war" and an "un-
friendly" act. "intcnded to cripple the
American merchant marine Orders
were issued Immediately TO the Nun
son Lines. which operate four
American vessels in tho South Ameri-
can trade, to put the new reduced rates
In effect at once.
Cuts Come as Thunder Bolt
"Out of clear sky to-day Chair
man Lasker said. 'Lamport ard Holt
announce new rates. They announce
these rates without consulting Us, in
spite Of the fact that we have. until
this time, been working together most
harmoniously and in spite Of the fact
that they knew that proper adiustme
was about to be made. The manner in
which they cut the rates shows that
the cut was not intended as merely a
read diustment of rates, but WAS mace
in such a way as to attempt to dis
courage us in our operations.
1--WE can take the action as nothing
but all unfriendiy ono intended to Grip
pie the American merchant marine snd
it's establishment OF the first high class
services under the American flag be-
tween North and South America. The
whole action in cutting the rates with
out conference with us. when VIC ad-
NIT they should have been adjusted
where we have been working so friend
ly, can be Interpreted only as q declar-
alton Of war in this trade.
'Lamport e. Holt run one ship, the
Van Dyke. which is comparable to the
four exquisite ships which we are now
operating through the Munson Lines
Their other three ships are inferior
ships, both as to speed and accommo-
dations, and arc in no wise compar-
able to the Van Dyke or the four ships
operated for the United States by the
Munson Lines.
"The basis Of the reason for their
cutting is, they claim, that their ships
save one, are inferior; but if the Ship
kind the working out Of it would be
that British fag-ships would carry the
trade. and the dream OF the United
States for an Americanhag line between
North and South America which we
now have represented by such wonder
full ships would be permanently made
Improbable and discouragng.
Ships 70 Be Withdrawn in June
''ln the month of June. we under
stand Lamport & Holt are withdraw
them in the profitable transatlantic
trade. They run only two ships q
month. Thus, if we meet their rate,
they want TO put the burden of loss
ON US while they are profitaby run
ning their ships in the North Atlantic
The Shipping Board wishes to make
il clear that we did not seek this thing;
that VIC were in friendly relations with
Lanport & Holt. and that we want to
keep in friendly relations with the
privately owned ships of every flag
But We believe that this may be q test
fight in all the oceans. s 90 whether
America is to continue expanding its
merchant marine and maintaining it
and we are prepared to meet the tight
at every point for sny length of time
Our hat IS in the ring, and we are go
ing to stick as long AS necessary tc
insure the position Of America an-has
ships between North and South Amer
lea
The four ships operated by the Mum
oor Line are the Pan America, " cstern
World, Southern Cross and American
Legion