New-York tribune., 1920-11-22

leading foreign maritime nations will
place. an offsetting duty on goods car
ried in American bottoms. Retaliation
in kind by this country would then be
probable, it is pointed out, hut this, IT
is declared by many, would mean a
worldwide retaliatory tariff war.
Talk of World Agreement
One plan that is being increasingly
discussed is the possibility Of an in
ternational agreement on shipping,
whereby uniform rates would be fixed
and an apportionment of tonnage made,
each country to receive 3 fair share
Of its own carrying trade direct to and
from other nations and a fixed pro-
portion of the indirect trade between
other countries. Admiral Benson is one
Of those who advocate an international
| agreement.
What this plan would amount to
would be an extension of the present
conference system to practically all
ocean transportation. The Shipping
Board is at present cooperating with
the various conferences on trade from
this country. and the question of it's
entering the conferences on trade from
Europe to the Orient and other parts
Of the world has been under consider
alton. The system in force abroad of
granting rebates stands in the way,
but it is believed that some method of
adjustment could be reached.
With the enforcement of preferen-
tial rail rates, the question will at
+ once arise as to the effect Of this on
the participation of American shipping
IN the conferences on trade from this
country. The point has already been
raised that uniform rates cannot be
maintained while goods in American
vessels have the advantage OF a rail-
way differential. Heretofore Admiral
benson,s attitude has been that this
ana other features of the merchant
marine act we're to be regarded as safe
guards for American shipping and not TO
be enforced unless necessary for protec-
tlon. in other quarters, however, it has
been contended that these things were
put INTO the law for purpose of enforce
ment and that not only preferential
rail rates, but discriminatory dutie =
should be instituted President VIII
sons failure to obey the law by not
serving notice on other countries Of
treaty. modifcatlons paving the way
for determinations, it has teen in.
dlcated, would be remedied by the Re.
puoiican Administration President.
elect Harding has already announced
that he favored the abolition Of
Panama Canal tolls for American shins
Two Schools of Thought
This is the situation as 1t stands.
Opponents of an international agree
ment point out that as long ms the
capital cost and the operating cost of
American vessels are greater than
those of other nations, American shin
pings earnings must be lower than
tnose OF its competitors.
Advocates of world conference nlan
declare that the American merchant
marine can be put on an economic basis
that will enable it to compete with
world shipping. In the use of oil fuel
iof SO large proportion Of its for
eign trade fleet, they say, this country
has marked advantage over its COM
Pet'tors whose shipping is far more
largely dependent upon coal Economies
obtained through the use of oil. it is
declared, will go far toward nffsettine
the difference in operating costs in
favor Of other merchant marines. In
creased efficiency that may be expected
TO come with increased experience in
me operation Of a large volume of
shipping Is cited as another factor. And
as regards the difference in capital
costs, this, it is declared, will be elm
mated IT the government disposes Of
its 1o0O.O0O tons of seagong ships at
hgure that will represent current ton
mage values.
with the reopening Of Congress, ad-
vocates of the two lines of action are
expected to lay the ground for the adop-
uon OF national marine policy.