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22 : . THE MARINE REVIEW ference rates. Trouble was threatened by the Mitsui line, operating Japanese tonnage to Japan and by the Blue Funnel line, an old established company. At & recent meeting, the Mitsui interests rejoined the con- ference and, while the British line did not actually take membership, it agreed conference tariffs would be respected. - Owing to cutting of rates by tramp operators, the - conference reduced the rate on salt herring between © Seattle and the Orient from $14 to $10. Nonconfer- ence lines originally booked this cargo at $12. The $10 rate was adopted in retaliation. Lumber is still quoted at $17.50 but it is no secret a rate of $12.50 has been freely offered. It is understood some conference car- riers booked lumber at the lower rate in order to forestall tramp tonnage. : While peace appears to have been established, the situation is so com- - Rate War plicated the germs of a rate war pif still are hovering and it would not be on racic surprising if hostilities broke out. Is Averted he only factor tending toward peace is the scarcity of cargo and the present low rates. In some instances these rates are lower than before the war, considering the increased cost of operation. If rates are cut below the conference level, it will mean handling cargo at a loss. Nothing in the Seattle section attracts tramp tonnage at present. Consequently, regular lines are hopeful of holding what little business is offering and maintaining conference tariffs. Because of the equalizing of rates, as compared with gulf ports, north Pacific operators have been able to book a limited amount of cotton for the Orient. Steel is moving in small volume and little lumber is being carried to Japan and China. With the drop in wheat prices, millers are hoping to re-establish themselves in Oriental markets. Should this prove true, transpacific carriers may expect some business in flour. However, the situation is so depressing at present no marked improvement is expected for several months. The lumber business to California has been active for two months but it is now slackening and additional coasters are likely soon to be placed in winter quar- ters. With the exception of intercoastal business, all routes from north Pacific ports are suffering from lack of cargo. Foreign buyers appear unwilling to pur- chase under present conditions with both ocean freights and commodity prices tending downward. Consequent- ly, exporters are finding it difficult to place their surplus and the water carriers are suffering in con- sequence. Charters for grain and flour to Great Britain and continent are still being negotiated on a basis of $18 to $20. The latter is the shipping board rate, while foreign vessels are said Foreign Ships Cut Grain Rates or less. The bulk of this business apparently has been moved, as there is little interest in this market. Additional cargoes of Tailroad ties are being taken to the United Kingdom, the latest charters for this being at $37.50, two ship- ping board carriers having been fixed. Until recently this rate was $45. Brokers are offering to charter grain tonnage on a basis of $19 and tie business for the first six months of 1921 is in the market at $40. There is ample ton- to be accepting this business at $18 - January, 192] - nage, secking lumber and rates are weak in proportion to the over supply of carriers. : If the shipping board decides to enforce Section 28 of the Jones bill after Jan. 1, additional complica- tions may be added to the already very involved ».cua- tion on the Pacific. In view of the amount of shipping board tonnage now idle in that territory it is under- stood the board takes the posiiion tuere is ainnle American tonnage to handle all business offering. The importers and exporters are prepared to protest strong- ly against the enforcement of Section 28 without at least six months notice. Contracts for imports are made months in advance and importers claim they must have ample notice in order that their engage- ments may not be repudiated and their trade customs upset by so drastic a provision as that of Section 28. The port of Boston has suffered in many lines from the general indus- Slump trial slump, but the shipment of te grain has been decidedly encouraging. 'The Boston-to-Pacitic coast service Boston also las proved so successful tuat -- the Wrst Isteta,.an 8800-ton ship- ping board vessel sailing to Glasgow, has been transferred to the west coast service. The YautzA, a 7500-ton freighter has been assigned by the shipping board to the North Atlantic and Western Steamship Co. as an addition to the coast-to-coast fleet. Service from Boston to the Mediterranean has been temporarily held up because of the small amount of cargo developing. The trade from Boston to Scan- dinavia kas, however, been encouraging and two sail- ings within the last few weeks have been made with profitable cargoes. They consisted chiefly of machinery, electrical apparatus, boots and shoes and rubber goods. A second sailing has been made in the Far East service of Patterson Wylde & Co. This is a direct line to Yokohama, Hong Kong and Manila and is re- celving favorable cargoes of machinery and manufac- tured products. Textile machinery has been prominent in the tonnage offered for the far eastern market. As a whole the port is in the midst of its winter lull, which is expected to continue until early spring; but some new lines are being planned. The Morgan line is planning a service between Boston and. other Many New north Atlantic ports and Houston, Soe as Tex. The United Fruit Co. announces Pl q its intention of continuing the line anne between Boston and ports in Chile, Peru and other countries along the west coast of South America. The United States Mail Steamship Co. announces a new service from Boston to Queenstown, Cherbourg and Bremen. The fleet for this includes the GEoRGE WasH- INGTON, AMERICA, Mount VERNON, AGAMEMNON, PRESIDENT GRANT and PocaHontas. Announcement is made by the American-Hawaiian line thot satrnes from Pacific coast ports. to Boston and New York shortly will be resumed. The rate war has spread to Boston and has had the effect of reducing tariffs on many commodities. Grain has dropped off from above 40 cents, a month ago, to about 30 cents early in December. Some shippers, however, are refusing to take tonnage at 30 cents and 33 or 34 cents per hundred pounds represents the present market. Although detailed figures have not yet been compiled something over 100,000 tons of grain has passed through Boston and Portland.