New-York tribune., 1920-11-18
Expect Benson
To Enforce Rail
Preferentials
shipping Men Believe Terms
Of Merchant Marine Act
Will Be Effective Begin
ming With First of Year
Canada Is Likely to Act
nou;nion Government Said
to Have Agreement With
British Steamship Lines

decision by the Shipping Board is
.'x.,ac.ed shortly as to whether the
system Of preferential rail rates pro-
.sssa for By the merchant marine act
Gill be put into effect from January
1924. or whether q further postpone
want Of the application will be made.
co..;on 2s, of the act, authorizes lower
~.;luay rates on goods exported and
:.,or.ed in American than in foreign
bottoms.
Following the passage of the act,
Admiral Benson, chairman of the Ship
ring Board, announced suspension Of
tbs enforcement of this section for
ninety days and q subsequent extern
SON to the end of this year. Consider
shle opposition to the enforcement Of
the plan was expressed on the Pacific
Coast, some shippers claiming that to
nut it into effect would mean the
withdrawal Of foreign vessels to Cana
dian ports, leaving the coast without
ADEQUATE shipping facilities. Foreign
steamship companies, especially the
Jsuanese, have also been active in ex-
pressing opposition to the plan, and
threats of retaliation have been made.
; Complaint that there is not suffi ficient
American tonnage on the coast is
stated to hold good no longer. There
has been a marked falling off in the
trade with the Orient in the last few
months. and announcement has now
been made oy the Shipping Board that
1t purposes to lay up some if its ships
en- the coast for lack of cargoes.
POLICY Upheld at Polls
The situation in relation to Section
IS was made an issue in the recent
political campaign on the coast. Sen
ator Wesley L. Jones, chief sponsor of
the merchan. marine act, was attacked
for his support of preferential rail
rates, but wss reelected by large ma
jority Sentiment on the coast, which
WIS strongly against preferential rates
carly last summer, is now reported to
lie as strongly in favor of them.
The Tacoma Chamber of Commerce
states that it has received the follow
ing message from Admiral Benson:
"As the matter now stands, il is pos
sible that Section 2S, of the shipping
act will be put in operation on
January /, 1921"
As an indication Of the fact that
American tonnage is now available for
use on the coast, it is stated that
ffty-six Shipping Board vessels are
now engaged IN commerce to and from
the port Of Seattle alone. The fifty
six ships include twenty three vessels
in the Oriental Line service, ten in the
huropean-Paci trade, and seven in
The Paciic-Atlantic trade.
Canadian Action Likely
Commenting on the situation, the
National Merchant Marine Associa-
tion with headquarters at Washing
ton states
Efforts on the part of a number of
steamship companies to have the
board put Section % into operation
are accentuated by the unconfirmed re-
ports taat Canadian government rail-
roads and British steamship lines have
reached an understanding upon
Similar policy in Canada"
announcement has already been
MADE from Ottawa that the Canadian
government merchant marine was to be
operated in conjunction with the gov
einment-owned system of railways,
Whieh run from the Atlantic to the
.aciAc. arrangements have already
eeeh made for services to the Orient
~ ~, cooperation with established Brit
M .sh steamship lines, these supplying
sne experienced organization and Sc
tafihg IN return the facilities accorded
~ 'he governments railway system.
A. mas not yet been stated, however,
s"sl preferential rail rates were to be
s.coTaed on goods shipped in Canadian
aHu Drlllsh vessels, but that step is ex-
hepiIying to criticisms Of Section %
rum me Pacific Coast several months
sgo' Admiral Benson stated that the
@c'ion as Ilaced in the merchant
saI ;ali me act at the instance and soicita-
ra. ,svm OF the Slipping Board 1t was
.seohmended, he said. as the basis Of
K,,'.eecuhg T. .e Pacific ports, among others,
m,ai ~ sne enjoyment Of an export traffic
''ng IN American ships.
TT, o'her Nations Discriminate
osv ne nc PROVISIONS contained in section
a{, ne added, were determined upon
ads adsei d most careful inquiry into meth
Gus employed by other nations for af
lung their nationals advantages over
ups ups OF other countries. Other ma
st;"s G~s nedge about their shipping oper-
ssorns, Uns with many special ADVANTAGES
stnetiy sn or openly bestowed.
~ ohe OF the most common has been
sns ~s use OF the preferential rail rate az
ss}. ssp}p'ylng only on cargo carried in YES
nra. r.s VI their nationals. Such was the
s-siee rsr OF Germany, which carried &C
s' 80 cent OF Its exports and so per cent
ssrd 's imports in German ships. 1t was
rsS - 'he practice of France. Consular
n,pfd ,pffieS made In 1918 gave details of
.S.eie''lais W. showing that French rail
evn s' give ~ per cent discount upon
vrssa, 49, !reight which moved in French
~ 'rSse.s to New York and like discount
tc Fanir F".iiar movements in French vessels
Jansng ngIand E and other ports. Spain and
ven Wi., nave also given preferential
,es,.!h "l'h 'he Shipping Board now in 8
s,''0h Where it has considerable vol.
~ VI aVallcble tonnage in excess OF
/, ERGO offerings, shipping men think
h t'ooa0le that the board will decide
Tho IaVe h section 2S put into effect al
IA W lhnlng Of next year. In addition
mn W. DEMENT'S gained by exporters anC
ya,,;Ir .ers VINO use American ships in
ro,. r..hg lower rates than their compel
tsa ,s who who use foreign bottoms. Ameri
tbs sn'pping VIII be the gamer through
ssc, s aue'tloral amount Of cargo to b,
Orussd, and this applies to privatel,
as n.su vessels under the American f1ae
w" as 70 government vessels.