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March, 1919 rates were found to be necessary in order to move raw materials in and finished products out via Pacific ports in competition with the ocean route via the Suez canal and later the Panama canal. The transcontinental railroads either had to make ‘these rates or do without the business which would be diverted via the Atlantic coast, Predicts Trade Will Be Retarded (Charles Converse, foreign trade expert, makes an _ interesting. com- ment on the situation as it now ex- ist’. He says: : “Tt might ‘be claimed that if these raw materials cannot enter and the finished products leave the country through the Pacific ports, they would do so by way of the Atlantic ports by taking the longer ocean route through, the ‘Panama canal. This is true to an extent, but if the con- struction program of the shipping board is fully carried out there would be in 1921 about 20 per cent less tonnage in the world than if no war had taken place. Inasmuch as there was no surplus of tonnage prior to the war and in view of the fact that there will be a much greater demand for tonnage now than then, it must be evident that there will be a short- age of ship tonnage. “Tt is nearly 5000 miles further from New York to the Orient than it is from San ‘Francisco to the Orient. Rates between the two American cities and the Orient are nearly the same, despite the distance. The conse- quence is that if Pacific commerce is forced to take this longer ocean route because of the railroads’ refusal to reduce the import and export rates, it will mean a material reduction in the available ocean tonnage. This is true, because a ship operating be- tween San Francisco and the Orient could make almost two voyages as compared with one via the ‘Panama canal to and from ‘New York City. Reducing the available tonnage in this manner and eliminating competi- tion via the Pacific coast would create a natural tendency to increase rates and thus place the American manufacturer at a disadvantage. Low- er import and export rates bring the manufacturing districts of the interior nearer tidewater and thus offset to a degree the advantages possessed by European countries where the rail haul is much shorter.” This argument, and, in fact, many of the arguments of the proponents for the restoration of the old export and import tariffs, so far as exports are concerned, does not give sufficient consideration to the actual time in transit of cargoes originating in the interior. Generally speaking, the time in transit is about the same whether a cargo is shipped to: the Orient via the Atlantic or the Pacific ‘ports, while the cost of rail transportation is of course higher than water trans- portation. This statement is almost equally applicable to imports, unless the government is disposed to assist the Pacific coast, as the privately- owned railroads did. The reason for this parity in time is that the railroad administration re- quires a headway of 35 days on ship- ments from interior points near the Atlantic seaboard when routed through Pacific ports, compared with 10 days when the shipments are rout- ed through the Atlantic ports. A shipment of steel from Pittsburgh, for instance, must leave there by rail 35 days before the steamer which is destined to carry it is scheduled to leave the ‘Pacific port. This differ- ential of 25 days practically equal- izes the ocean sailing time from north Atlantic ports and from Pacific ports to the Orient. There were 1642 fewer steam and sailing vessels entered and cleared at the port of San Francisco during 1918 than there were during 1917. The total tonnage entered and cleared: dropped from 14,214681 to 11,131,963 during the same period: In January, 1919, as compared with January, 1918, there was a decrease of 111 vessels, representing 129,918 tons entered and cleared. Frisco Trade Slackens The tonnage of steam and sailing vessels arriving at and departing from San Francisco during 1918 and 1917 -was as follows: Steam Tonnage Departures To: 1918 1917 Foreign ports ............. 1,307,638 1,713,902 American other than coast... 801,712 780,888 DOASH arse ee Rata iat uivis tones 2,538,945 3,617,274 i Wah) Wiig racy Baayen VAR Na tea 4,648,295 6,112,064 Sail Tonnage Departures Foreign ports ..........0+- 169,455 127,206 American other than coast... 92,657 99,941 Gaastk Caro iinet Win ocetenee ns 781,083 799,917 rit) ieee Ra oe SOR S ans eae 1,043,195 1,027,064 Total number vessels...... 4,566 5,417 Steam Tonnage Arrivals From: s 1918 1917 Foreign ports ...........4- teen Lee American other than coast... 638, F ; : CORSE acne Cpa Soa 'y Cretk aie pre 2,647,513 3,570,849 MOtal)< vviete wo) 0 oi lecnie ec 9's 4,396,414 6,075,250 Sail Tonnage Arrivals Foreign portS ....-.+-++++++ 228,740 132,003 ther than coast... 115,909 97,645 cere) : tae patera ante taiat ast 700,410 770,655 Motale cashier eds rue wees 1,044,059 1,000,303 Total number vessels...... 4,561 5,352 Figures for January, 1918 and 1919, are: : Steam Tonnage Arrivals From: Jan., 19 Jan., 718 jo Baga gee aes i an sige ; A es acess URE ant shat gece cole .218 237 259,734 Motal: sve k ca eece oe oe estes 364,696 410,783 THE MARINE REVIEW 161 Sail Tonnage Arrivals Foreign RAE Sire Oe ae Ca aR 10,371 20,981 American other than coast... 7,658 5,343 COS Kit ise Sa oie 51,966 65,760 Ota ceca wicca wien aheG 69,995 92,084 Total number vessels..... 342 408 Steam Tonnage Departures . To; Jan., 719 Jan., 718 Forelon: 5 ports ts. ean ecace 124,253 114,209 American other than coast... 76,559 72,426 COaSti es: Aree es eceae ea tcwtornars 188,310 255,977 TOtab rs Shee ae ante eters 398,122 442,612 Sail Tonnage Departures Foreign: potts <7 senate. 13,615 14,949 American other than coast... 5,317 8,258 Coasts sce ere i on ae 47,786 65,760 ROCA se Vcliewieg sera toueseie ers 66,715 83,967 Total number vyessels..... 352 397 Another indication of the serious- ness of the situation to the Pacific coast was the announcement of the Robert Dollar Steamship ‘Co., made Feb. 4, of intention to transfer the company’s fleet of steamers, formerly operating out of Vancouver, B. C., to New York. Ocean Rate Situation Hurts Trade ‘(Concluded from Page 157) and the sooner normal conditions are restored the sooner we shall begin to stimulate all our industries.” A. H. Bull, president of the A. H. Bull Steamship Co., controlling a line of 35 steamships, said that the govern- ment in making a low rate across the Atlantic on cotton had permitted Eng- land, the heaviest importer of cotton, not only to manufacture piece goods, but to compete successfully with Ameri- can manufacturers in the markets of Italy, France and the United States. He added: “Under existing conditions England can force our mills to stand idle while she remains busy. ing low freight rate applying to cotton, along with cheap labor and _ cheaper freight rates, not only can she compete in Italy and France, but can export her manufactured goods directly to the United States and undersell the Ameri- can manufacturer. “We have found it a difficult problem to do business under present circum- stances. The outstanding feature of the export problem today is for us to meet the British cuts in freight costs. There is no better way in which this can be done than for the government to take its hands off just as soon as it can and re- store the ships to their proper owners. Otherwise there should be some. inter- national export trade arrangements. “The new transatlantic rate schedule recently put into effect by the shipping board appears to be satisfactory for the present, but it is only a auestion of time when the British will make: further sub- stantial reductions in their freicht sched- ules and we must follow suit.” ie een ie OR Ny alg LA Cea aaah Mase Under the prevail-_ Oe Be PRES hae ee en Rae pn eet Ng TS mm BA