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January, 1917 formerly imported’ from Germany. The Netherlands Ship Building Co. has recently announced that it has been forced to discharge workmen, and other yards are likely to follow, although all are overloaded with con- tracts. German Output Low There has recently been a notice- able decline in the production of many of the German iron works which man- ufactured ship building steel and iron, and lately the German government has imposed severe restrictions on the export of such goods, amounting in some cases to absolute prohibition. This decline, according to statements in the Dutch press is due on the one hand to the fact that the iron works have been doing a large amount of work in the manufacture of munitions, while on the other hand there has been a considerable scarcity of labor. As a consequence the Dutch ship building yards have of late been re- ceiving practically no steel for plates and frames, and the position is such that unless the situation promptly changes, many of the works in ques- tion will have to discharge a large number of their hands. In a word, ship building the world over must look to the United States for help. Fast Service The Toyo Kisen Kaisha, the principal Japanese shipping company in the trans- pacific trade,. announces, according to Consul General George E. Anderson, Hongkong, China, that it is building a new vessel, SAN FRANCISCO MARU, which will be the largest and fastest vessel on the Pacific ocean. It also states that this vessel will serve only in an express service between Yokohama and San Francisco by way of Honolulu, and will make connections at Yokohama with other vessels serving Manila and Hong- kong. This division of the voyage has been discussed by shipping interests from time to time and was seriously consid- ered a little less than a year ago, when the reduced tonnage on the Pacific made it impossible to serve the entire east acceptably, with the result that Japanese ports and interests were first served by Japanese lines. It was estimated at that time that by confining the service of the larger and faster ships to the Yoko- hama-San Francisco run, and allowing the service between Hongkong and Yokohama to be taken over by other lines and smaller ships, the available tonnage across the Pacific could be ma- terially increased. The new vessel is to have a length © of 636 feet, about 46 feet longer than the “Empress” ships of the Canadian THE MARINE REVIEW Pacific Ocean Service, Ltd., which now furnish the leading fast service across the Pacific. The ship will have quad- ruple-expansion engines, a speed of 23 knots an hour, accommodations for 300 first-class passengers, 100 second-class, and 800 steerage passengers, and every possible convenience and luxury. It will, in short, be designed to compete with the Canadian Pacific and with any ships American companies may elect to place in the Pacific service. It ‘is ex- pected to be ready for use within two years. Much of the material comes from the United States. Its construc- tion is under way in a new ship yard established for the purpose. It will be followed by other ships of the “Empress” class. Japs Served First The inauguration of the express sys- tem from Yokohama to San Francisco emphasizes the policy of the Japanese lines, under government subsidy, to serve Japanese interests first, leaving Manila and Hongkong interests and American trade there to be taken care of by other means. The fast service will be of special advantage to Japanese .silk interests, since the short voyage reduces interest Great Lakes AINLY because of the high M and increasing cost of labor and coal, the ore carrying rate from ports at the head of Lake Su- perior for 1917 has been fixed at $1, net. This is the highest rate since 1900, when the contract rate was $1.25; the wild rate for that year averaged about 84% cents. The dollar freight rate for the Great Lakes is exactly double the rate for 1916. It is equivalent to $1.10, gross. The gross rates for other years since 1900 have been as follows: 1901, 84 cents; 1902, 76 cents; 1903, 83 cents; 1904, 70 cents; 1905, 76 cents; 1906, 75 cents; 1907, 75 cents; 1908, 65 cents; 1909, 65 cents; 1910, 70 cents; 1911, 60 cents; 1912, 50 cents; 1913, 55 cents; 1914, 50 cents; 1915, 50 cents. Earlier in the season it was thought that an increase of 25 or 35 cents would be made; but it has been for some time generally recognized : that the rate would be doubled. The ac- tion of a number of the leading ship- pers in making contracts for the 1917 season at $1 has therefore caused no great surprise. It is expected that the contracts which have just been made will gov- ern a large percentage of the business to be done, although some owners of vessels have indicated that they will hold a large part of their tonnage in 21 charges on valuable silk cargoes to a minimum. This is one of the vital elements in the silk-import business. Inasmuch as Japanese silk interests in the past few years have developed al- most a complete monopoly of the raw- silk trade with the United States, this first service is likely to increase ma- terially the hold of the Japanese silk dealers upon American manufacturing interests. Manila Out in the Cold It is becoming more and more evi- dent that if there is to be any material improvement in the shipping services between the United States, Hongkong and Manila it must be from American sources. The inauguration of the new service of the Pacific Mail Co. is being watched with great interest. The ves- sels now in service are said to be com- fortable, attractive and satisfactory in every way, except in size and speed. The keenest sort of competition in passenger and freight service on the Pacific is expected at the close of the war, and the character of the vessels already in service or under construction is such that only those of the highest class may hope to have a_ reasonable part in the trade. reserve, in the hope that they may be able to place it at a wild rate higher than the rate now fixed. But most of the vessel tonnage has been already contracted for for the season. The increase in the general. cost of operating ore carrying steamers on the Great Lakes, the vessel owners say, entirely justifies the new rate. The cost not only of labor, but of coal and of other supplies, they assert, has made necessary the sharp advance quoted. The iron ore selling movement for 1917 delivery was delayed while the shippers awaited’ the fixing of the rate. Ore selling is now on at full blast at prices averaging $1.50 higher than during the past season. The New York Ship Building Co., Camden, N. J., has now under way five steamers for the Darrow-Mann Co., one for the Gulf Refining Co., one for the Coastwise Transportation Co., a coal carrying steamer for the Pocahontas Navigation Co., an 11,000-ton oil steam- er for the Petroleum Transport Co., a lumber carrying steamer for the Car- penter O’Brien Co., and eight car floats for the New. York, New Haven & Hartford railroad. The total work con- tracted for and yet in the yard of the ship building company amounts to more than $10,000,000.