Evening star., 1923-07-20
j. S. SHIPS LOSING
CANADIAN GRAIN
Canada's New Freight Rate
Rules on Great Lakes Cause
Bitter Opposition.
BY j. c. ROYLE.

Special Dispatch to rhe Sta
BUFFALO. \. Y. July 20.-Opera-
ton Of Canadas new freight rate
regulations on the Great Lakes has
diverted. at least temporarily. prac-
1ically all shipments of Canadian
grain from american ports.
Grain men here expressed the belief
today that Buffalo would receive only
the "slop-over" of the Canadian grain
harvest unless some adjustment was
made of this new act Of the Canadian
parliament This opinion was sup
ported strongly by vessel brokers and
Erain men of Duluth. There is every
indication that shipments abroad
through New York and Philadelphia
will suffer. and that Montreal VIII
benefit.
Must Post Grain Rates.
The new law. known as the inland
water freight rates act, provides that
all vessels loading grain at Fort VII
liam and Port Arthur (three miles
aparD shall post their rates and
terms of charter for each cargo on
the Winnipeg. Grain Exchange and
before the grain commissioners AT
Fort William.
Canadian vessels already have be-
gun compliance with this law. and the
terms of the tirsI postinss or the
larger Canadian carriers were recelr1
ed here today American ~ ressel del
clining to publish the terms OF theif
charters and refraining from seeking
Gargoes at the great Fort w Imam
and Port Arthur elevators
Strong Opposition I'm L. :.
Objection TO the publication OF
these rates, Nesbit Dammer' prom
rent grain and shipping man OF Bur
,falo, who is interested in lake lines
under both the American and Cana
dian flags. stated. come not only from
American vessel owners but from
shippers, charterers and exoprters.
dealer. he explained, who shipped. Tor
example, 100000 bushels, all of which
was not sold at the time of shipment.
might readily be at a disadvantage
with competitors of the date. amount,
destination and rate of his shipment
We're made public for all TO read.
Then. too. Mr.. Dammer, added. the
vessel owners. while they had no
serious objection to having any one
know the rates they were charging
from day TO day, moved large
amount of grain on long time con-
basis. the publication Of the terms
Of which would give indication OF
their future plans,
Object to Regulation.
The main objection OF the Ameri-
can shipping men to the terms of the
new law. however. is the precedent 1t
would give in acknowledging them
selves subject to dictation by any
regulatory body. They have always
Tlaintained that the lake carriers
could not he classed with railroads
sS common carriers.
The Canadian authorities are Civ
ing close attention TO the new law
and working out definite interpre-
tatIon Of its terms in view of the
stand of American vessel owners. In
he meantime, however, the Canadian
government is pushing work on
0riis, elevators and loading and un-
Il aiding facilities on the lakes ard at
Montreal in an effort TO handle a
liz I'd Of wheat within the next eight
WI KS.
.,racticaIly no Canadian grain is
Kennedy jr.. Buffalo grain man. but
Canada will have a crop estimated at
60o,000.000 bushels. Unless some ad-
justment is made, il begins to look
slopover from Montreal shipments"
L. s. Ports at Disadvantage.
He added that American ports al
ready were at disadvantage be-
cause Of the high rail freight charges
from Buffalo to tidewater on part
water, part rail shipments and indi-
Gated his belief that a lowering of
those rates might prove of consider
abte assistance in remedying the
situation.
fine shape and can not see why we
should start publishing our rates
now said prominent vessel broker
in Duluth However something must
be done soon as the big Canadian
grain crop will begin moving to the
Canadian head of the lakes within a
few weeks.
This is Canadas affair and her
privilege" another Duluth shipping
man asserted I'VE can keep busy
moving ore. coal and American grain.
American vessels who want to do
business with them will naturally
have TO comply with the law unless
st. is changed and that of course is up
TO Canada"
Snip Owners Sitting Tight.
The general tendency of American
vessel owners is to sit tight and see
what effect the rush of the Canadian
harvest will produce. 1t is remem-
bered that many vessels were forced
% wait from a few days to a month
before they could be unloaded in
Montreal last season.
Aieorse H. Spencer, president of the
Duluth Board OF Trade, said that the
new law had not yet been brought
before that body for consideration,
but it is expected the board will be
asked to take some action.
p. II. Ginder, ecretary-treasurer of
the Barnes Ames Company of Duluth
expressed confidence that some ia
vorable adjustment would be reached
permitting American shipment of
Canadian grain to continue.
Object of New Law.
THE primary object of the new
law undoubtedly was to produce
lower rates for Canadian grain" Mr..
Ginder said But l am doubtful
about it's producing that result In
my opinion it is more likely 1t will
result in higher rates for Canadian
vessels. 1t will tend to put charters
on such a basis that a vessel owner
will insist on terms which will as
sure a certain return whether his
vessel is en- route or is waiting to
load or unload. 1t undoubtedly will
have the effect of stabilizing Cana
dian rates and limiting competition
"If YOU want an opinion, il is my
belief that American vessel owners
will again be running into Fort Will
liam and Port Arthur for cargoes be-
fore the summer IS over"
This latter statement was con-
CURED in by +. r. Douglas of the