Evening star., 1926-11-29
SHIP SALE LIKELY
TO T0A|GCOMPET|T|0N
Grain and Shipping Experts
Interested in White Star
Transaction.
BY j. G.. ROYIE.
Special Dispatch to The Star.

special Dispatch to The Star.
NEW YORK. November 29-It
costs on the average 31.1c on the
bushel to move grain from the Mid
west TO Europe. according to figures
compiled today by grain and shipping
experts. In view of that fact the sale
of the vessels Of the White Star Line
to the Royal Mail Steam Packet Co
is arousing widespread discussion
among agriculturists all over the
country.
The Sa lie does not add to the vessels
operating under British registry. since
the White star was under the British
flag when operated by the lnterna-
tional Mercantile Marine, hut there is
a feeling that the sale has meant an
infusion of new blood into com.
petitor already strong.
Experts point out that when freight
Is paid on grain shipped to Great
Britain, America $ best foreign cuSto
mer il acts to all intents and pur-
chaSes as a rebate on the price of the
grain, although this rebate is not
made direct to the grain consumer
The demand for ocean tonnage for
coal carrying, which caused the re
cent abrupt rise in ocean freiEhtS, is
passing and vessels are being released
for other services: but the delay to
shipments of other commodities has
piled up stocks sufficiently large to
keep the general level of rates up for
a while at least. The seasonal move
ment of grain and cotton is expected
to keep world fleets busy until early
Spring.
These conditions, affecting the en-
tire country as we'll as the shipping
industry, have drawn renewed atten-
tion to the possible action of the
submitted for the United States Lines
and the American Merchant Lines.
Shipping circles are discussing
whether - not the board will turn
down all bNfk on the grounds of the
mail contracts involved and continue
to operate the Leviathan and other
vessels of the United States Line itself.
Some of the bids provide programs of
building and operation, which many
shippers feel would be of the greatest
value, restraining the upward move
ment Of freights such as has taken
place in late months.
The hid of Winchester & Co. and
Gibbs Bros, Inc, for example, pro-
poses to buy the American mercha mt
ships outright at an expenditure of
$1,000 900. charter the Leviathan n
group, guara ntee fund of $4,000 900
in cash for their operation, and in ad-
than type at a cost of $30, 900 900, of
which the bidders would put up $10,-
GOO 900 and the board $4,000, 900,
under the provisions of the merca ntile
marine act. The profits would be
divided with the Government $3.50.
Other bidders have submitted bids of
a somewhat similar character, but in
less detail. Heretofore propositions to
buy Shipping Beard vessels have been
based on little more than their junk
value, with the offer to operate them
until worn out. Replacement tending
to build up an American merchant
marine has not been a factor in nego.
tiations.
Big Lake Boats Save.
The effect of freights on farmers
may he clearly seen when it is realized
that the rates from Argentina to Eng
land are only little more than half
those from United States Atlantic
ports. From Odessa they are less
than one-third the American rate.
three quarters of the American rate.
The eight big 600-foot freighters
now building on the Great Lakes in
dictate how the inland waterways
transportation system Is being built
up. A great sa wing is effected by the
operation of these large. modern-type
vessels as compared with smaller
boats. A 600-footer can he operated
with a crew of 80 or 33 men, while 25
to q are required on small craft.
The saving in wages and food is con-
siderable, while the additional fuel
costs are said to be nominal, and extra
cargo capacity insures an increase in
earnings.
Copyright. 1929