The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-03-02
A tempt to Dissolve
Combinations Would
Cripple Trade.
COMMITTEE ENDS
TWO-YEAR INQUIRY
Advantages Through Agree
ments Declared to Be So Great
That Arrangements Should
Be Allowed to Continue
Under Supervision of
Federal Commission.

i.
WashlnEton. March I.--Forelen and
I Domestic shipping Of the United states
Is SO combined by agreements pools
and conference arrangements. tnat an
attempt TO dissolve tho combinations
would cripple trade This Is the con
clusion r"achcd by tho Iiouso Mer-
chant, Marine and Fisherira Committee
In Il fnhl report or the so-called ship
ping trust Investigation. made public
to-day The committee, after two
years of exhaustive inquiry. recon-
'n"nds that both foreign and domestic
shipping combinations be placed under
I ,he strict control Of the Interstate
! Commerce Commission. ana that II nc.
ccssar". the commission b. enlarged to
care Tor the additional work
The ara! recommendations ~ tho
committee, embodied in tho fourteenth
volume Of Its report. just compiled, set
/ forth that shipping lines fl virtually
/ every trade route from or to Enited
states ports. arc operated bv agree
/ 'neni or conference To restrain compe-
I tuon. Tho report declares that tho
advantages accrning both To- shipper
and ship lines through these agree
\ r0cnts arc So great that combinations
I should hc allowed To continue under
the supervision ~ the Interstate Com.
/ inerce Commission a. To rates. ciassi-
iication. rebates ard discrimination. Ii
would BE futile. the committee statrs.
/ 10 attempt L. restore competition by
4 ordering aEreerneu,s terminated.
j The report deals with 500 foreign
and domestic navigation companies ana
/ 200 railroad lines.
7 Summary of Findings
I In statement summarizing tlic com
mittee's tlndlurs aud recommendations
i Chairman Alexander said.
i relative TO the foreign trade. the
! report shows tlat II is the almos. mi
versai practice for steamship lines.
both on the inbound and outbound
royae".' 10 operate under agreements
/ and conference arrangcmcnts which
have for thoir purpose the control OF
+ competition between the conference
i lines or between them and uonconfer-
I cncc lines. Eighty agreements or uu-
!. derstandin-s. involving nearly all the
7 regular lines operating on nearly ev-
| cry American foreign trade route arc
/ in effect dealing, respectively with the
l traffic 10 and from Europe. Africa. Aus
traiia Asia. South America. Mexico.
+. Central America and tho Yves, Indies
\ In the few Instances where several
4 lines served the same trade and denied
the existence of co-orerative arrange
ments, II appears lthat one line was
sufficiently powerful to dominate the
4 other lines. ard. without c!tectire any
i definite agreement. secure the desired
conditions in rates, The numerous
/ agreements referred To present four
teen distinct methods hv which the
lines seek 10 control competition, either
| through the fixiug and regulation OF
rates the apportionmcnt OF traffic. the
5, pooling of earnings OF the elimination
| OF nonconfcrcnce lines.
Competition Eliminated.
with reference to the domostic
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
apparently have been scluuulousll
I avoded-aud the elimination Of com
petition In rates has been accomplished
hy other methods Nearly three
fourths of the line tonnage operating I'm
| the American coastwise and Great
/ Lakes trade, is owned or controlled by
railroads and shipping consultations.
| Even ms reeards bulk carriers, there
is strong tendency towards the cs-
| tablishinr of community OF interest
between the owners. TINS is especial
~ Indicated or the Great Lakes.
The committee concluded to recog-
ni2e agreements and conferences
among carriers i'll the foreign trade
/ only. If brought under some form of
| government auporvlsion. Open com
/ petition caAnot be assured for any
| length or time hy ordering existing
agreements terminated Such terinln-
| alton either would cause tho lines to
engage In rate wars. which would in
| evitably result In the survival OF the
fttcst. or. to avoid a costly struggle,
they would consolidate through com
| mon ownership.
Supervision IN Rcmedy.
For this reason, the committee fclt
that effective government supervision
is the only means Of eliminating exist
| ing abuses, and assuring TO shippers
the benefits which may flow from CO.
| operative ARRANGEMENTS among the
| lines. such supervisory control tho
committee felt, should be vested in the
Interstate Commerce Commission be-
cause of the close relations between
rail and water transportation. If nee
| essary. in view of the added duties in
volved. the membership of the com
mission should he enlarged"
As to foreign shipping, the commit
tee recommended:
That all agreements and under-
standings between navigation com
or shippers. hc filed with the inter
state Commerce Commission: that the
commission be authorized to determine
the icascnablcncss of rates and To ,r-
der rates changed: that rebatlng no
prohibited by law; that the commits
sion be empowered to enforce fair
treatment OF all shippers and that the
use of cut throat fighting ships End
deferred rebates DO prohibitcd."
HeRniatc Domestic Trade
as to the domestic trade, the COM
/ mite recommended.
THAT In addition to the foregoina
the jurisdiction of tho Interstate com,
mercc Commission be extended to in
| tcrstate port-to-port traffic with full
powers to regulate and hx rates; that
CONTINUED on Eighth Pare