New-York tribune., 1920-04-29
New Ship Bill
Based ON i. S.
First Policy
Coastwise Craft Must Be
American Owned; Citizens
TO Control rs Per Gent
of Foreign Trade Vessels
Restrictions on Sales
Preferential Rail Rates to
Aid Carriers Urged in
Measure by the Senate

WASHINGTON, April Establish
ment of an America-tirst policy for the
development of the American merchant
marine is provided in bill drafted as
a substitute for the House merchant
marine bill by the Senate Commerce
subcommittee and made public to-day
by Chairman Jones, who plans to re-
mort it to the full committee to-mor-
row.
Coastwisc shipping, the bill provides,
must be entirely American owned,
while rs per cent of the stock of cor
poraticns engaged in foreign trade
must be held by American citizens.
Sale Of American ships to foreign in
tcrests would be prohibited by the bill
without the approval OF The Shipping
Board, which the act creates.
Preferential Rate Plan
The bill also would prohibit the In
terstate Commerce Commission from
exercising authority already existing
10 grant preferential rail and water
freight rates on exports or imports, as
we'll As passenger rates, unless Amcri-
can owned vessels were used. Upon
the boards recommendation, where
American owned ocean transportation
facilities are inadequate, the commits
sion would be authorized by the bill to
suspend this section. In order to per-
nit this discrimination the bill directs
the President within ninety days from
lis passage to terminate treaties re-
strcting the right of the United States
Ito impose discriminating duties or
tonnage dues on foreign imports or
fore ign vessels
This simply unshackles the United
States commercially so far as its mer-
chant marine is concerned and will en-
able it to pass such laws as it may de-
sire to pass for the encouragement of
the merchant marine Senator Jones
said to-day In providing for the pref
erential rates nc declared. the bill
only proposed policy similar to that
under which Germany. Japan and
other countries have built up their ex-
port trade and maintained their ship
ping.
AS already announced. the bill Will
place the present governments owned
merchant fleet under the direction Of
shipping board composed of seven
members which would be authorized to
operate the ships under charter or
otherwise and develop the foreign
trade of this country through the es-
tablishment of new trade routes by
means of private enterprise, if posi-
BILE, OF through government operation,
e ncco ssary.
Need of Merchant Marine
The bill says national defense and
the proper growth of American com
merce require a merchant marine of
the best type of ships sufficient for
the greater portion of commerce ulti-
mately TO be owned and operated by
private American citizens. 1t specifies
shat the board must do what may be
necessary to accomplish this purpose.
The House bill directed the board to
sell the government-owned ships a,
soon as practicable. but the Senate bill
provides that they shall be disposed
Of ''as soon as practicable consistent
with good business methods and the
objects and purposes to be attained by
this act"
Ships of foreign owners who arc
guilty Of giving preferences or rebates
or discriminating against Americans in
violation of existing statutes would be
barred from American ports.
Amendments to the La Toilette sea-
mems act also are appended to the
measure, designed to carry out recent
Supreme Court decisions and bring
foreign seamen UP to American stand
ards