TRADE OF THE EAST.

Dominion, Volume 1, Issue 307, 21 September 1908, Page 7

TRADE OF THE EAST.

AMERICAN SHIPPING, ITS RETREAT FROM THE PACIFIC. AUSTRALIA'S OPPORTUNITY. (B7 TELEGRAPH—rEF.SS ASSOCIATION— COPYRIGHT.) (Rec. September 19, 10 a.m.) Syrinoy, Sept-ember 19. Mr. Suttor, Trade Commissioner in tho East, considers the abandonment by tho United States railways of tho export trade should considerably improve Australia's export prospects iu tho East. JAPANESE COMPETITION. A THROUGH BATE—ITS SECRECY DISTURBED. Tho first intimation of tlie intended abandonment of the Pacific export trade by the big American companies owning railroads anil steamships was received in a cablegram of July 30. Writing under the same 1 date the r.ew York correspondent of tho "Daily Mail" states:— "American merchants trading with the Orient were astonished to-day to receive an intimation that the Hill and Harriman transcontinental railway systems havo under consideration tho abandonment as unprofitable of their extensive Pacific steamship service, in which are invostcd millions of dollars. "The fundamental reason is that these lineß aro unable to compete with the clieap rates which t'je Japanese steamers find possible, owing to low wages and heavy Government subsidies. But these difficulties were capped by tho latest ruling of the American Inter-Stato Commerce Commission. To meet tho deadly Japanese Competition the railways have been forced to give cheap through rates to China, Japan, Australia, and New Zealand. "The Commission, under pressure from Californian merchants, has now ordered the railways to separate their inland charges from their ocean rates, and to publish the former. Bather than comply tho railways, knowing what a storm the revelation of their low rates of Oriental shipments would raise on the Pacific coast, declare that they will sell their steamers on November 1 and abandon tho Pacifio Ocean trade altogether. "This trade is valued at about .€1,000,000 annually, and its cessation will give the Japaneso a virtual monopoly of American freight-carry-ing across the Pacific. Last year tho German linos, under stress of Japanese competition, transferred several of their Pacific vessels to other routes. Mr. James Hill, when one of his newest and largest ships was wrecked recently, announced that, for the same reason, it was not worth whilo to replaco it."