New-York tribune., 1920-11-25
Canada Seeks
OInvade s.
Coastal Trade
Department of Commerce
Makes Adverse Ruling ON
Application in Behalf of
the Steamer Tillanook
Marine Act Is Challenged
Provisions Stringent as to
American Ownership of
All COastwise Vessels

Canadian efforts to invade the coast
wise trade are reported to be back of
the application for enrolment in that
branch OF marine traffic of the steamer
Tillsmook.
To stop such an invasion Senator
Wesley L. Jones introduced into the
merchant marine act a provision re-
serving the coastwise trade to vessels
built and owned in the United States
and with stringent requirements as to
American control.
Through various departmental rul-
ings Of some years ago." says The Ma
rine journal, ga Canadian railway.
heavily subsidized by the Dominion
government, had managed to divert to
its own rail and steamship lines a part
OF the American domestic trade be-
tween Puget Sound and Alaska
"To put an end to the Canadian in
vasion Senator Jones's provision was
introduced with view that it would
efectuaily bar out Canadian competi-
ton in the traffic between the United
States and Alaska and reserve this on
tirely' as the law intended it should
be reserved, to ships built in this coun-
try and owned by American citizens.
Government Checks Plan
However, the law has been cha1-
ienged by an application for enroll
menI o1 the steamer Tillamook, an
American-bujlt craft owned, through a
suosdlsry corporation, by the Cana
olan Government Railways. The annIi-
cation OF this vessel has been adverca-
reported on by the Bureau of Navi-
CATION OF the Department of Com
meree, on the ground that enrolment
ol Sucn a foreign owned ship would he
IN IN VOCATION of Sections 27 and SO of
tne merchant marine act.
.u,.li. lne case has been put before the
soHcItor OF the Department of Cor,
merce. 1t is regarded as u obm- cpn1
ienge OF the merchant marina oo4 a..
interests closely allied to the Canod;or
government The new law is verv sna-
s.!e .n rs requirements of predomi-
nAn' american ownership of vessels ON
Faged III the coastwise trade n, +ho
tlited States" VI '"c
Sec,lon % of the act provides tho+
"l'Hlh the meaning of this act no
,,'foi"Hon, partnership or associat;on
'".' De ueeined citizen of the Tnitod
N.'''sS 'he controlling interest
-. Is owned by citizens of the
'"'Sea States; and in the case ne -
'oFpcra;.on. unless its president ard
,.ahAE'hg directors are citizens of 10
n,'ed states and the corporation II.
"n ORGANIZED under thu laws of tha
49,, 49,, '1''-'eS or or 4 state, territory
u'S'i'oI or possession thereof: hut in
''' case or corporation. association
VF partnership operating anv vessel in
'He coas'Wlse trade the amount of ;n'
'erest required to be owned bv citizens
"i .ne tnlted States shall be rs per
Stringent Provisions Made
subsequent clauses Of Section az ra-
quire that 20 per cent of the interest
IN corporation shall not be deemed
GO oe owned by citizens OF the United
.la'es II the title to rs per cent Of
t.e tn LOCK IS not vested in such citizens
aa, a.ve rom any trust or fidIciary obli-
Satlon IN favor of any person NOT q
citizen of the United States. or if *
per cent OF the voting power in such
corporation is not vested in citizens
81 lhe plted States; or finally. if bv
any means whatsoever control of anv
interest In the corporation in excess Of
% per cent is conferred on or per-
mltted to be exercised by any person
not citizen of the United States"
=, me case of the Tillamook." saws
me Marine Journal, 'has stirred up a
great deal of interest in the Northwest
ana the final decision of the Federal
authorities is awaited with much in
terest 1t was openly boasted when
ne merchant marine act was passed
mat the powerful state owned, state
SUBSIDIZED Canadian railway and steam
snip companies would work untiringly
10 discover method Of 'circumventing
me Yankees and retaining possession
OF par Of the valuable American
Alaska coastwise trade.
!, Apparently the Canadian corpora
uons are endeavoring to|purchase the
american built vessels and to get
around the law in this way.
but the merchant marine act, prop
efiy construed would make even this
course impossible-for the coastwise
,essel has to be not only American
quilt, but up to rs per cent actually
ma honestly American-owned."