The Cordova daily times., 1920-08-13
PREFERENTIAL RAIL RATES
 ARE COMMON

WASHINGTON, Aug. 13 (by Asso- ciated ess).-Provision of the Mer- chant Marine Act giving preferential rail rates on export and import com modities carried in American bottoms are in line with practices adopted in Germany, Japan, France, Spain and other countries, Admiral Benson, chairman of the United States Ship ping Board declared in letter to Com missioner of the Port, w. T. Christen- sen, of Seattle, Wash, made public here today.
 These provisions were inserted by congress at the request of the shipping board, Admiral Benson said, and are designed to offset "the countless dis criminations by other nations against American shipping with which the shipping board ships and pri-
 
 States have had to contend"
 Allowing differential export rate lower than the domestic rate upon the rail shipments within the country is purely a domestic prerogative," the chairman declared. Each nation may unquestionably determine for itself that such rates may be made and that they shall be limited in applications to cargo carried in vessels of it's na- tionals. The board of trade report to the British government made in 1918 regarding shipping policies conceded that the control of such practice can- not properly be made the subject of such a treaty"
 Chairman Benson's letter was in re- ply to one from Commissioner Chris jensen, who declared that since the major part of the Oriental commerce with Puget Sound was carried by for eign vessels, the enforcement of the discriminatory features of the Mer- chant Marine Act might result in the division of that commerce to Canad- ian ports. Admiral Benson said that the threats of foreign carriers to trans fer their Pacific coast operations to Vancouver, should preferential rates be granted for American ships, were not worthy of consideration.
 Unless American ships be substi- tuted for foreign ships in the carrying 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, bringing abundant pros perity to your community, must close their gates, dismiss their employees and as an industry cease to exist. Few repairs to foreign shipping are made in American yards, nor does the use in our trade with foreign ships en- courage the building of American yes sels in American yards, the benefits of which should be apparent to the in other business interests of Puget Sound
 Discussing the giving of preferen- tial rates in other countries, the chair man said that France had given 20 per cent discout upon export freight moving in French vessels to New York and other ports, including those of Great Britain, and that of Spain also was using that method along with many other preferentials in the way of subsidies and subventions with Span lsh ships.
 Japanese ships in the past" he said, were able to quote the same rates to interior points in Japan as other nations were able to quote to the seaports Of that country, a differ ,n+;at ouite sufficient to have enabled +bon, in the absence of like prefer ential rates within the United States and they have done so in many lh- stances to the disadvantage of Amer lcan ships and at times to certain American ports