Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-15
FEW i. S. VESSELS
IN SOUTHERN TRADE
Hoover Finds Most of South
America Traffic Borne in
European Holds.

Stan Correspondent of The Star on the
Hoover South American Good VIII Trip.
President-elect Hoover must nave
sighed with disappointment on noting
the scarcity of merchant ships flying
the flag of his own country in the busy
harbors Of South America.
There were British and French and
German vessels of all sizes and descrip-
tons, but few indeed were the ships
that were American owned. These few
were glimpsed almost exclusively on The
west coast of the southern continent,
and were owned mostly by one line.
In other words. most Of South Amer
Scas imports and exports are borne on
~zsse1s flying European f1ags-a condi-
ter that augurs not so we'll for our
own merchant marine and, withal, for
our seq trade to the south.
European ships have a decided
monopoly on the passenger traffic to
and from the east coast ports of South
America. They are handsome ships
commodious and luxuriouSly appointed
for the comfort of their passengers
Their service across the Atlantic and
to the United States is fast and de-
pendable. The competition they afford
American-owned vessels is of a type
hard to approximate, much less eclipse.
Small Tourist Trade.
Moreover, the amount of tourist
travel supporting the various lines is so
limited that competition becomes far
from profitable, from a passenger car
rying standpoint. The tourist ships IN
the South American service probably
carry less than $4,000 or 100000 pas
Sengers yearly, so that the tourist trade
cannot be compared with the trans
Atlantic service between North America
and Europe. Consequently the induce
nlents for American liners to enter the
South American service are not what
one could term encouraging.
On the west coast, however, a diff
ferent situation obtains. The Pacific
side presents marked trade potentiali-
ties for consideration by American
shipping interests. Down that coast
are vast supplies of raw materials
needed by American manufacturers and
farmers. Chile has her seemingly in
exhaustible deposits of natural nitrates
ready to revitalize Americas farming
acreages, and she has copper, iron and
lumber available. for shipment north
ward. Central America has her bananas
and coffee and lumber. All the other
western lands have valuable raw
products ready for export.
Latin America, furthermore, is call
Ing out louder and louder for American
made factory products. She is eager to
exchange her raw products for auto
mobiles and safety razors and farm
machinery and shoes and other manu-
lectures. She is learning to prefer
articles made In the u. S. A. to those
made in Europe, for she has found
them to be cheaper, as rule, and
usually better in quality. Perhaps that
Is why SO per cent of all automobiles
In South America bear the familiar
name plates Of leading American car
manufacturers. Henry Ford and Cen
eral Motors, OF course, lead the field.
European Houses.
With the exception of the automobile
fleld and several other classes of more
important manufactures, the American
goods are distributed by European
controlled wholesale houses and retail
stores. That is the hitch. 1t is but
natural that tine wholesalers should
favor European goods over American
products. They cannot be expected to
press a customer to buy American
articles when they have available Eu-
ropean articles just as good and maybe
slightly cheaper The same condition
holds all along the line. British store
keepers-and there are a preponderance
of them down there-would rather sell
English goods than American any old
time, and they can't be blamed for that.
The remedy is plain. American
manufacturers should follow their prod
ucts through to the customer If they
are to build up a progressive field for
their manufactures in South America.
There Is an acute need for American
wholesale houses there, and for Ameri-
can distributing methods and sales
engineering" American wholesalers
could exert great influence In Stimu-
lating the American merchant marine
in South America. BY increasing the
demand for American goods there
would naturally ensue demand for
incidentally, Mr.. Hoover found that
one Of the drastic foreign trade ideas
he introduced while serving as Sec
rotary of Commerce Is working out to
perfection In South America. There
had been an illusion prior to this
move, that American manufacturers
failed to make Roadway In South Amer
= lean markets because they did not
adapt their products to the particular
requirements of the various peoples of
the Latin markets. The manufacture
ers insisted 1t would be improbable to
break away from mass production
methods In order to launch a l1etero-
generous manufacturing program. New
ertfeless the Commerce Department
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