The Birmingham age-herald., 1914-03-02
COMMITTEE MAKES
 REPORT ON ALLEGED
 SHIPPING COMBINE
tConttnued From Page One.)

-~-~-~--~------------ without effecting any definite agreement, secure the desired conditions in rates. The numerous agreements referred to present If distinct methods by which the lines seek to control competition either through the fixing and regulation of .ates, the apportionment of traffic, the pooling of earnings or the elimination of ronconference lines.
 With reference to the domestic trade the facts show that competition in rates between steamship lines has been as effectively eliminated as in the foreign trade. In this trade, however written or formal agreements are rare-appar- ently have been scrupulously avoided and the elimination of competition in raets has been accomplished by other methods
 Nearly three-fourths of the line ton mage operating in the American coast wise and great lakes trade is owned and controlled by railroads or shipping con- solidations. Even as regards bulk car- riers there is strong tendency to- wards the establishing of a community Of interest between the owners. This Is especially indicated on the great'lakes where a community of interest, through common officers. directors or large stock holders. or charter relations, exists be tween g groups of bulk carrrers repre- ocitiuS LII OI vne AmeT1can bulk tonnage on the great lakes. a5
 'The committee concluded to recognize agreements and conferences among car riers in the foreign trade only if brought under some form of effective government supervision. Open competition cannot be assured for any length of time by order ing existing agreements terminated. Such termination either would cause the lines to engage in rate wars, which would in- eyita b1u rasllt in ba 0% . test. or, to avoid a costly struggle, hey would consolidate through common ,wn- ership.
 For this reason the committee felt that effective government supervision is the eonly means of eliminating existing abuses and assuring to shippers the ben eflts which may flow from co-operat,ve arrangements among the fines. Such su- pervisory control, the committee felt should be vested in the interstate com ~merce commission beca anse of the close relations between rail and water trans portation. If necessary, in view of the added duties involved. the membership of the commission should be enlarged.
 Concerning Foreign Shipping
 AS to foreign shipping, the commit. tee recommended:
 That all agreements ana understand ings between navigation companies or Such companies ana railrOaUs or ship. pers be filed with the interstate com merce commission; that the commissior be authorized to determine the reason ableness of rates and to order rates changed; that relating be prohibited by law; that the commission pc empowered to enforce fair treatment OF all ship pers: and that the use of '.cut-throat fighting ships" and deferred rebates be prohibited.
 As to the domestic trade the commit. tee recommended:
 '"rhat in addition to the foregoing, the Jurisdiction of the interstate commerce port-to-port traffic with full powers tc regulate and fix rates; that water car riers. if cutting rates against a com petitor. be denied the privilege of re. storing rates: that all traffic associations pertaining to rail and water or all water transportation be brought under the com mission: that railroads be prohibited from making discriminatory rates or unfair al. vision of rates on rail ana water routes that railroads be compelled to make ter. minal facilities available 70 all water carriers under the regulation of the com mission; and that canal transportation in interstate traffic be placed under the supervision of the commission"
 The committees recommendations prob ably will be embraced in bills to be framed by the committee at later date though 1t is probable that no effort vii be made to press such legislation al the present session of Congress.