South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-08-11
RATE PREFERENCE
SAME IN EUROPE,
BENSON DECLARES
Differential Rail Rate Offsets
Foreign Discrimination,
Says Admiral.

WASHINGTON. Aug. 11.--Provi-
sions OF the Merchant Marine act
giving preferential rail rates on ex-
port and import commodities car
ried in American bottoms are in line
with practices adopted in Germany.
Japan. France. Spain and other
countries, Admiral Benson, chairman
OF the United States shipping board.
declared in a letter 10 Commissioner
Of the Port ". T. Christensen. Of Sc
attic. Wash. made public here re-
Gently.
These provisions were inserted by
congress at the request of the ship
ping board. Admiral Benson said.
and are designed to offset the
countless determinations by other
nations against American shipping
with which the shipping board ships
and privately owned vessels Of the
United States have had 10 contend
Allowing "A differential export
rate lower than the domestic rate
upon the rail shipments within the
country IS purely a domestic pre-
Togative," the chairman declared.
Each nation may unqu estionably
determine for itself that such rates
may be made and that they shall <e
limited in applications to cargo car
ried in vessels OF its nationals. The
board OF trade report 20 the British
government made in 1918 regarding
shipping policies conceded that the
control OF such practice cannot prop
erly be made the subject Of such
treaty"
Chairman Benson's letter was in
reply 10 one from Commissioner
Christensen, who declared that since
the major part OF the Oriental COM
merce with Puget Sound was carried
by foreign vessels, the enforcement
OF the discriminatory features of the
Merchant Marine act might result in
the division Of that commerce TO Ca
madam ports. Admiral Benson said
that threats Of foreign carriers to
transfer their Pacific coast opera
Jion stO Vancouver, should preferen o.
tial rates be granted for American
ships. were not worthy Of considera-
ton.
Unless American ships be sub
stituted for foreign ships in the car
rying OF the greater part of your
Oriental commerce, the chairman
said. the shipyards Of Puget Sound
which have given employment to
many thousands OF workmen. bring
ing abundant prosperity 10 your
community, must close their gates.
dismiss their employees and as an in
dustry cease to exist. Few, If any,
repairs 10 foreign shipping are made
in American yards, nor does the use
in our trade with foreign ships en-
courage the building of American
ships in American yards. the bene-
fits OF which should be apparent to
the merchants IN other business in
terests OF Puget Sound"
Discussing the giving OF preferen-
tial rates in other countries. the
chairman said that France had given
n 20 per cent discount upon export
freight moving in French vessels to
New York and other ports, includ-
ing those OF Great Britain. and that
Spain also was using that method
along with many other preferentials
in the way OF subsidies and subven-
tiOns with Spanish ships.
Japanese ships in the past" he
said. were able 10 quote the same
rates TO interior points in Japan as
other nations were able TO quote 10
the seaports Of that country diff
ferential quite sufficient 70 have en-
abled them in the absence of like
preferential rates within the United
States for our own ships. 70 control
the rail routings within the United
States. and they have done so In
many instances to the disadvantage
certain American ports