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World Charter Market Reviewed by FEAR RATE WAR Obduracy of French Opens Breach in Atlantic Trades--New Board Contract Meets with Opposition ESPITE the element of uncertainty interjected in the shipping situation by the political cam- paign, the business of ocean transportation 1s beginning to display some hopeful signs after months of inactivity and doubt. President Wilson made a desperate attempt to fill the five vacancies on the ship- ping board prior to the elections, but under the cir- cumstances found it difficult to obtain enough com- petent men willing to accept office. During the first six months of the current year, shipping board vessels transported 55 per cent of the export cargo shipped in American bottoms, and trans- - ported 37 per cent of the import cargo brought in American ships. Of all the cargo reaching or leav- ing American shores in ships of all flags, shipping board vessels transported approximately 29 per cent. These figures represent in a measure the potential power wielded by the shipping board. To have this power subjeced to political manipulation would be dis- astrous to the country. : It has been shown furthermore that, due to continu- ance of labor troubles in Europe, especially the threat of the English miners, American vessels have been able to find better berths. Most of the large steel vessels tied up by the shipping board about a month ago on account of the lack of freights, have been returned to service. More export coal than the board - can take care of has been offered for transportation overseas. The Carribean trade has been the best for the smaller steel ships, but conditions there have been unpropitious. Havana, the most important har- bor, has been congested. After long negotiations with the French line, the shipping board was Operators compelled to acknowledge its fail- ooo. ure to effect solidarity in the rate conference negotiations and orders Rate War were issued to operators to meet the rate cuts of their competitors. This action nullified practically all rate conferences with the exception of the United Kingdom conference. British lines still are disposed to work hand in hand with the American merchant marine, but the stubbornness of the French promises a rate war in services from the north and south Atlantic and gulf coasts of the United States to French At- lantic ports, Antwerp, Rotterdam, Hamburg and Bremen. Commenting on the attitude of the French line, Admiral Benson has been quoted as saying: "It is a war to the knife unless they return to the fold and play fairly with the conference." The French Rotterdam, West line, it is charged, has been holding out, demanding. that the shipping board guarantee that line a certain minimum of the business in the competitive trades. Beginning Nov. 1, the shipping board put in effect a base difference of 5 cents per hundred pounds on 684 flour over wheat. This action was taken to encour- age the exportation of flour. Foreign shipping inter- ests declare it was a political move to appease the American miller, alleging it is easier and cheaper to handle wheat and the 5-cent differential is not suffi- cient under the circumstances. It probably is true in this case that the power of a governmental organi- zation has been used in the commercial field of ship- ping to lend encouragement to an American industry, Such a policy, adopted by the shipping board for the first time, indicates the enormous influence American shipping has over economic conditions in the country. The shipping board has announced also a new agency contract for the management and operation of its vessels. This makes a payment of 5 per cent on outward and 21% per cent on inward freight in place of a fixed sum per deadweight ton and a division of profits allowed in the contract put into effect last March. The new agreement is retroactive to March 1, The agreement does not meet with universal favor, but no uniform contract would. Some steamship owners now state that they would prefer a bare-boat charter from the government as under such an ar- rangement a steamship line by private initiative and efficiency would not be limited in its possible profits. On the other hand, there are some companies under the old agreement which show larger book profits than under the new agreement. About the middle of October, char- ters were being maintained around Charters the figures prevailing during the ark days of August. Ships were Develop offered from Hampton roads to Strength Rotterdam at $9.50, to the French Atlantic at $10 and $10.50, to Scandinavian ports at $13 to $13.50, and to River Plate at $12.50 to $13. As the English coal crisis drew near a stiffening in the rates was observed. For the French Atlantic trade, many or- ders were in the market at $11 and $11.50 with at least one order for a spot steamer at $12 per ton. Other European ports were slow to follow this lead but the indica- tions were there would be fur- ther business available for Is Turbine an Engine? A steam turbine an engine? This is the question raised in Italy and French the application of the Northwest M e diterranean. However, ships were slow to take European berths, as they feared _ they would be unable to obtain: bunker for the return. As a conse- quence, the River Plate and Brazil trades were crowded. Dutchports have held good stocks of. coal Stee! Co, Portland, Oreg., in its action before the interstate com- merce commission against the rail- road administration for alleged over- charging on shipments of 46 car- loads of marine steam turbines from the east to Portland. The turbines were assessed the freight rates applicable to engines, while the steel company asserts the ma- chinery rate should apply. An en- gine a prime mover of some description, while a turbine is a prime mover of a particular type, is the company's contention. The. company was associated with the Columbia River Ship Building Corp. is