New-York tribune., 1920-12-12
Shipping g Board
Going Into Rail
Rate Question
Benson Says Every Effort
Will Be Made to Supply
Marine Facilities at the
Earliest Possible Time
Urges Use of u. S. Vessels
Advantage May Be Taken of
Preferentials on Freight
Before First of Next Year

Preferentials on Freight
Before First of Next Year
From The Trtbnne's Washington Bureau
WASHINGTON, De-. 11.-While the
Shipping Board will not press at pres
ent for the application Of preferential
rail rates to exports and imports in
American vessels to take effect Janu-
ary I, joint comm.ttee of the board
end the Interstate Commerce Commits
sion will conduct thorough investi-
cation of the advsability of early
application OF tile plan, as provided
by the merchant marine act
Admiral Benson, chairman of the
board, states that every effort will
be made to hasten the providing of
American shipping facilities, so that
can be made effective as soon as pos
sible.
The chief difficulty at present is in
the lack of the propar kind OF tonnage
for the Pacific trade, especially in
speedy passenger and cargo steamers
which could handle shipments of silk
and tea from the Orient. This lack
is expected to be made up IN snort
time by the delivery to the board of
& number Of vessels Of this type now
nearing completion. While there is
enple American tonnage available for
ordinary cargo in q number of trades,
shipments in these lines are at pres
ent on a much reduced scale from the
normal
Use U. s. Ships, Benson Urges
Admiral Benson emphasizes the inn
r,rtance of American shipper, billing
their merchandise by American ships
hereafter, and intiTates that the
board may find it possible to take
Elan between now and the first of The
year. "If we find between now and
January l." he says. "that a line has
sufficient ships to handle the goods
which it has contracted to carry, we
will certify this fact to the Interstate
Commerce Commission, and the only
way for shippers to secure the ad
v;-ntages Of this preferential is to
ship by American vessels hereafter.
I'VE hold that it is not necessary for
b.! ports and routes, but that the
port or route All we can do is to
certify that there is enough American
shipping to handle the business, and
it is then with tho Interstate Com
rerce Commission to put the act into
execution"
The joint committee of the Shipping
Board and the commis ion, it is un Ter
stood, will either hold hearings on
tie question of continuing the sus
pension of Section 2S, or will invite
suggestions from merchants, manu-
steamship owners before finally decid-
inv W hon n Narn,it Tho cpcfiO iOr to ha-
come effective.
The question of the application of
Section 2S has been contested by the
Pacific Coast business men from time
to time. 1t has been shown that on
business between certain manufacture
ing sections of New York, Pennsyl-
vania, Ohio and Middle West points
the rates to the Atlantic seaboard
points are the same for both domes-
tic and export movement, but on busi-
ness for this same territory to the
Pacific Coast much lower rate is
made on export or import business
for rail haul than applies or domes-
tic business.
Pacific Coast Viewpoint
AS the amount Of American tonnage
on the Pacific Coast is limited it has
been insisted by Pacific Coast interests
.hSt If the preferential railroad rates
arc given to goods moving trans
Pacific 20 American bottoms that the
foreign ship owners operating Nn the
Pacihc would immediately withdraw
their tonnage from iha. trade and
send it to Gulf ard Atlantic ports,
thus depriving the Pacific Coast ii.
prests Of 65 per cent ut least OF
Developed during the recent hearings
that, naturally. the transcontinental
railroad lines now enjoying transcon-
tinent hauls on this TONNAGE would
lose because the business would move
either to the Atlantic or Gulf ports
1t has been insisted in Congress for
some time that Section % is one of
{ Z ...nu.mei>al principles of the mer
chant and marine act, because it gives
extend preferential treatment to Amer
lean ships, and that it should perhaps
be permitted to go into effect whether
the business moves by the Atlantic,
Pacific OF the Gulf ports.
Tentative aiocution has been made
Of the duties of the United States Ship
ping Board and Emergency Fleet Cor
! poratloN.
Board AlIOcatcs Duties
Chairman Benson, F. l. Thompson,
vice president. ana Commissioners j. a.
Donald, J. n. Teal, 9. II. Rowell. Guy
d. Goff and Charles Sutter are assigned
to duties as follows:
General comptro!lers oftce-1ea. Thoinp-
son, Rowell and Got
Industrial relntions-J}enson.
Construction claims boArd-Sutter and
Rowell.
Law Experimentation
supply and saies--Ihompaon and Goff.
+ ship sales-Donald, Suffer- and Gor.
Construction and repairs--ponaid and
Thompson.
Rcgula,lons-Benson, zeal Thompson
Sutter.
Hecruiting-C7off and Donald.
Advertising g-Rowell.
Transportation and housing operations
Rowell and Sutter.
Opcrations-Donald. Roweil and Teai
Interstate Commerce Commission confer
ences--Teal. Thompson and Rowell.
lnsurance-Rowell and Sut,er.
] I)..n. al Ilurac