TRADE WITH THE EAST.

Press, Volume LXIV, Issue 13226, 21 September 1908, Page 7

TRADE WITH THE EAST.

AUSTRALIA'S OPPORTUNITY

United. Press Altocialion—By Electrio Telegraph—Copyngnt. SYDNEY, September 19. Mr Suttor, the Trade Commissioner in tho East, considers the abandonment by tho United States railways of their export trade should considerably improve tho Australian export prospeots.

American merchants trading with tho Orient were astonished on Thursday, July 30th last (says an American correspondents to receive an intimation that the Hill and Harriman transcontinental railway systems had under consideration tho abandonment as unprofitable of their extensive Pacific steamship service, in which aro invested millions of dollars. The fundamental reason ,is that these lines are unablo to compote with the cheap rates which tho Japanese steamers find possiblo owing to low wages aud heavy Government subsidies. But these difficulties were capned by tire latest ruling of tho American interState Commerce Commission. To meet the deadly Japanese competition the railways have been forced tb give cheap through rates to China, Japan, Australia and New Zealand. The Commission, under pressure from Californian merchants, has ordered the railways to separate their inland charges from their ocean rates, and to publish the former. Rather than comply, the railways, knowing what a storm the revelation of their low rates on Oriental shipments would raise on the Pacific coast, declare that they will sell their steamers on November Ist and abandon the Pacific Ocean trado altogether.