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232 believe is warranted by improved conditions and which - will allow them to make a slight profit. American 'carriers, it was asserted could not handle lumber at $10. ; The rate on wheat and flour carriers from north Pacific to Great Britain and Mediterranean ports has just advanced from $10.50 to $12. A Norwegian steamer' was recently fixed at the lower rate but a slight flurry in the market sent the rate up to $12 at which figure three shipping board steamers have just been taken. The previous government rate was $15. The tonnage in question has been idle for some time and the rate of $12 was accepted rather than have the business go to foreign vessels. Whether the market will remain at $12 is- an open question as there is no great demand for vessels in this trade. e Following a reduction in the steel rate.to the Orient from $11.25 to Readjust $6.50, a further readjustment has re- ee sulted in a rate of $5.88 per ton on iron and steel products. The agree- Rates ment was reached following an im- portant meeting of the -westbound Pacific conference. Because of re- ductions in the all-water route from Atlantic ports to the Far East, Pacific operators were confronted with the necessity of cutting their schedules to meet competition from eastern ports. The new tariff is said to place Pacific ports on a parity and now it is expected that considerable steel and iron will be di- verted to the combined rail and water route through Pacific gateways. In addition to the cut on steel, through rates to the Orient are now $15 on unmanufactured tobacco while cigarets take a rate of $10 per net ton. Automobiles have been cut from $10 to $8 per measurement ton. With these readjustments, Pacific services expect that they will now get their share of through business which for the last six months has been moving through Atlantic ports which were favored by the rates in existence until recently. While the reduc- tions have been drastic, Pacific lines concluded thai material concessions must be made as a matter of self-preservation. In an effort to assist Pacific coast packers to move their surplus stocks, the intercoastal lines have adopted new schedules under which canned goods are cut from 65 cents to 50 cents per hundredweight. This reduction is about 23 per cent. and applies to canned fruit, canned milk and canned salmon. The conces- sion is expected to stimulate the movement of these Pacific coast products to eastern markets, The low- er rate is effective until July-31 next by which date it is believed the surplus on the west coast will have been cleaned up. While the lumber rate to the Atlantic remains at $20 and ties at $18, lumbermen and steamship op- erators are in negotiation looking toward further concessions. Lumber shippers are asking the water carriers to allow a .rate of $18 and also to give free carriage to stakes and straps used in the back. haul by rail. Shingle shippers also want the steam- ships to assume the same liability allowed by the railroads. These matters are under consideration with evidence that an amicable agreement will be reached. While some water carriers do not like to handle lumber, the position of the lumber industry MARINE pacific lines are now back to a basis which they REVIEW May, 1921 is realized by the steamship operators and the lat. ter desire as far as is consistent to aid the lumber industry. However, the intercoastal lines are bookin increased tonnages of shingles, copper, canned goods flour and grain and a substantial business js being fostered. Water shipments are rapidly in. creasing because of the high rail Take Trade tates. In fact the land carriers are bon considerably alarmed at the diver- : sion of cargo to the water routes, To Railroads consider the situation the transcon- tinental railroads are to hold shortly a conference at San Francisco for the purpose of working out a tariff of terminal rates based on water competition. The interstate com- merce commission will be asked to grant the nec- essary permission so that the roads may return to the prewar practice of meeting water rates. The railroads regard the situation as serious and they realize that some concessions must be made in order to meet the condition. Prior to the war terminal rates were in effect based on Panama competition. The steamships are conceded to be making serious inroads on the business of the land carriers. The movement of lumber in the offshore trades is very slow. Little chartering has been done. The disparity -in exchange, the inability of foreign mar- kets to finance their needs and the hope of foreign buyers that commodity prices and ocean freights may go lower are deterrent factors. Indicating the trend of the market, a sailing vessel has been fixed for lumber to the West coast at $20 per thousand while tonnage is said to be offering to Australia at $18. The lumber rate to South Africa is now $35, to United Kingdom 200 shillings and ties at 150 shill--- ings. However, no lumber or ties are being booked and the market is dormant. The most active move- ment by water at present is in the intercoastal routes on which increasing business is noted although com- petition is very keen. -There is a slight improve- ment in the Orient trades but the supply of space still exceeds the demand. A cut of $5 per ton in general freight from British Columbia ports to Calcutta is announced by the Canadian Merchant Marine Ltd., the new tariff of $14.40 corresponding to the rate from Vancouver to Hongkong and transshipment to Calcutta. General cargo movement throush the port of Boston has just about Trade held its own during the past month, Gaining Put grain shipments have notice- ae ably increased and the whole sentt- at Boston ment has improved decidedly. In- quiry for grain and manufactured commodities materially increased during the past two weeks and now with the rate war ended, and the activity of the Maritime associa- tion of Boston well launched, the port looks forward io regaining its former share of the country's traf- c. One of the principal services to gain in grain shipment and general inquiry is that to Scandinav- lan ports. The Sprague line, operating several boats to this destination, has had full cargoes. during the month and recently exchanged its 4100-ton ship Lake FLAMBEAu for the RockAWAy Park of 8800 tons. . A recent sailing of this company carried a full cargo of corn from the port of Boston to Rotterdam. The coastwise coal trade started to improve about