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172 THE MARINE REVIEW the incentive needed to run rates up. The insurance companies, however, have shown a conciliatory atti- tude and are perfectly willing to work out the sta- bilization of insurance rates if the shipping board can prove that the present rates are excessive. Ship operators are much more concerned over the wage question. Aroused Over lf the shipping board would con- W sent to give as much attention to age that as it has to the insurance ques~ Question tion they believe considerable good might be accomplished. Also a further revision of the operating agreement was sought, a request which was answered fairly favorably. An increase of 144 per cent in brokerage fee was allowed. But with the reduction in freight rates the companies accepting shipping board vessels for operation under agreement find that their, profit on the deal is curtailed. They therefore are inclined to demand a high per cent on the freight receipts to compensate themselves for managing the government’s merchant’ ships. While the discussion over the improvement of th docking and freight-handling facilities at New York and Philadelphia proceeds, improvements to European ports are progressing rapidly. The work of repairing the devastation at the Belgian ports is well under way under the supervision of the administration of roads and bridges. In Ostend the clearing opera- tions are carried out with the help of the British military authorities. In Zeebrugge, the British pro- pose also to raise the numerous wrecks which have foundered in the port. The port of Bruges presents an extraordinary sight. Torpedo boats, submarines and floating docks have been sunk in the port where the Germans had constructed a formidable system of defense. In Antwerp the position is much more favorable, and the harbor plants are nearly all. intact. All along the canals and rivers of Flanders there is a state of chaos, everything having been systematically destroyed. Toward Ghent, on the Scheldt, the bridges, locks and dams have been demolished; the flow of the water is therefore impeded, and there is danger of floods. Everywhere ships have been sunk, not less than 30 having been raised between Ghent and Ter- monde. It is reported that the Canadian Pacific ocean steamship lines are considering seriously the advisa- bility of making Portland, Me., their American ter- minus. This does not mean that St. John will be eliminated as a terminus, but the Portland terminus would be tied up with rail connections over the Maine Central railroad... , Charter market conditions at north Pacific ports are in a state of readjustment and until several points of uncertainty and differ- ence are cleared it will be impos- sible to gage the level of the mar- ket. The situation is most chaotic, owners, agents and shippers hav- ing divergent ideas. While the United States ship- ping board has announced a basic rate of $12 from north Pacific ports to the Orient, this is purely a paper rate. Owing to the shipyard. strikes, several vessels approaching completion for the United States government have been seriously delayed and the fed- eral authorities have been unable to place any ships on the berth so as to enforce the $12 rate. As far as known no steps have been taken to compel private Situation is Chaotic on Pacific April, 1914 operators to accept this rate. In the meantime, most ° of the freight moving is going at rates ranging from $30 to $45, much of it having been booked months ~ ago when the market was firm and space scarce. ‘There is no question that Oriental freights are weak. It is reported that several lines on this route have an understanding to place rates on a basis of $15 per ton plus whatever extra is warranted by con- ditions, this to apply after April 1. There is con- siderable doubt whether the market will reach this low level by that date although some readjustment will probably have been effected within the ‘next month. There is a scarcity of cargo com- ing from the Orient. Several ves- Orient sels have arrived recently from Cc China and Japan with only part argoes cargoes, a condition unknown for Are Light more than two years. One large carrier came from Japan in bal- last a few weeks ago. In addi- tion, several large Japanese freighters, which have been under charter to the United States government for the last 10 months, have recently been released and are coming from the Atlantic to the Pacific in ballast. This condition is affording an abundance of space for the Orient and is certain to clear up the vast congestion of freight at Pacific coast ter- minals within a short time. Pacific coast shippers and shipowners are awaiting with anxiety the establishment of through rates by the railroads. At present lower freights are offering to the Orient from New York by the all-water route than from the Pacific coast. It is understood that the railroads are giving consideration to combined rail and water rates but until this matter is adjusted, the Pacific coast is at a’ disadvantage. The decision by the railroads not to absorb handling charges at Pacific coast ports, as in the past, has resulted in a deadlock between the water and land carriers. The railroads have compromised to the ex- tent of announcing their willingness to absorb part of the charges but the steamship operators have flatly refused to pay any of this cost, insisting on the practice, which has been in existence for years, of receiving and delivering cargo at ship’s sling. This controversy has added to the uncertainty of the gen- eral situation here. If the shipping board places sufficient tonnage on the berth, it is agreed that a $12 rate to the Orient can be enforced, but until it is done by sufficient ships to compel private carriers to meet the cut, freights will continue to be based on a matter of supply and demand. Lumber freights in the Vacific are considerably weaker. Whereas, $60 was recently paid for lumber to Buenos Aires, owners are willing to now accept $55 or less. Melbourne commanded a rate of $48.50 several months ago, but this has declined to less than $40. Other trades, in which lumber moves in quati- tities from north Pacific ports, have shown similar declines. Under existing circumstances, it is difficult to do business. The absence of a fixed policy by the ship- ping board is exerting a deterrent influence on the entire situation. Owners and charterers both are loath to commit themselves and until the atmosphere ek no person has any fixed basis upon which to work,