Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-03-02
SAYS j. s. SHOULD
CONTROL SHIPPING
House Merchant Marine and
Fisheries Committee
Makes Its Report.
ADVOCATES SUPERVISION
BE PLACED WITH |. C. C.
Recommendations Are Made for Both
Foreign and Domestic Trade.
Bills May Follow.

To place foreign and domestic shipping
combinations under the strict control of
the interstate commerce commission in
order to solve the intricate ship trust"
and shipping pool" questions is the
recommendation of the House committee
on merchant marine and fisheries. made
public in its report last night after two
years of investigation. The committee
found that the existing relations between
shipping lines in foreign and domestic
trade are so intricate as to make 1t in
advisable for Congress to attempt to dis
solve them. The committee states that
practically every trade route to or from
the United States is traversed by ships
operating by some agreement TO restrain
competition but that there are adVan-
tages to both shipper and ship line which
should be allowed to continue under the
strict supervision OF the interstate COM
nerce commission.
In summarizing the findings OF the
committee Chairman Alexander said in
a statement made public today mat
eighty agreements are in effect on the
lines carrying traffic to and from Eu-
rome, Africa. Australia. Asia South
America, Mexico. Central America ard
the West Indies.
win reference ~ Tic uOti4S'7''N
the statement says:
No Competition in Rates.
The facts show that competition in
rates between domestic steamship lines
has been as effectively eliminated as in
the foreign trade. In this trade, how
ever. written or formal agreements are
r:lre-apparently have been scrupulously
avoided-and the elimination of competi-
ton in rates has been accomplished by
other methods Nearly three-fourths OF
the line tonnage operating in the Ameri- |
can coastwise and great lake trade is
owned or controlled by railroads and |
shipping consultations. Even as regards ,
bulk carriers there is Il strong tendency |
toward the establishing of a community |
% interest between the owners. This is |
especially indicated on the great lakes. |
" here "A community of interest. through |
common officers. directors or large stock
holders or charter relations, exists be |
tween thirty-Sevcn groups of bulk car !
ricrs. representing tEree-fourths of the |
american bulk tonnage ON the great /
lakes.
The committee concluded to recognize |
agreements and conferences among car |
ricrs in the foreign trade only II the same
are brought under some form OF enectiNe |
government supervision. Open competi-
ton cannot he assured for any length OF
tlliC ny OtueIlilS tSiStllS vi
minated. Such termination would either |
cause the lines to engage in rate wars |
which wotld inevitably result in the sur |
vival of the fittest. to avoid a costly |
struggle. they would consolidate through |
common ownership.
Government Supervision Advocated. |
For this reason the committee felt that
effective government supervision is the |
abuses and assuring to shippers the ben
Gifts which may flow from cooperative l.
arrangements among the lines. Such su- I
pervisory control the committee felt /
should he vested in the interstate COM !
MERGE commission because of the close re-
lations between rail and water transpor- |
tation. If necessary. in view of the added
duties involved the membership of the
committee should be enlarged
As to foreign shipping the committee
recommended:
That all agreements and understand
ings between navigation companies or
such companies and railroads or shippers
he filed with the interstate commerce
commission: that the commission be au-
thUriZed to determine the reaSonableneSS
Of rates and to order rates changed: that
rebating be prohibited 10y law: that the
treatment of all shippers. and that the
use of cut-throat lighting ships and de-
fcrred rebates be prohibited.
Domestic-Trade Recommendations.
AS to the domestic trade the committee
recommended
That in addition to the above. the
Jurisdiction of the interstate commerce
commission be extended to Interstate |
port-tcport traffic with full powers to
regulate and fix rates: that water car
riers. II cutting rates against COM |
petitur. be denied the privilege of restor- !
ing rates; that all traffic association |
pertaining to rail-and-wster or all-water |
transportation ..e brought under the
commission: that railroads be prohibited |
from ma king discriminatory rates or l,n- |
fair divisions OF rates on rail-and-water
routes: that railroads be compelled TO |,
make terminal facilities available to all