New-York tribune., 1920-12-10
To Press Billfor
Free Zones to
Aid Shipping
Renpublican Senator's View
Il as in Line With the
=, '..s,.Protective Tariff Plan;
Senate Committee to Act
zones Favors Measure
Snonsor of Marine Act for
Plan; Increase in Ocean
Trade One Object Sought

.soceS in American PO% - GIG CSpSStS0
fb 3 Be pressed in Congress.
'sslY subcommittee Of the Senate Com
.a,,s.s. on Commerce, to which the SEN
~. bill on free zones WAS referred, has
js,.ysed favorably on the bill. The de-
.;s;on reached by the three Republican
|asrsrbers Of this sub-committee-Sena-
,ors Tones, Calder and Lcnroot--is that
free zone system would not only be
in line with a protective tariff policy,
Int desirable adjunct to one. A
,aucus of the Republican members Of
The Senate Committee on Commerce was
called. but has not been held. 1t is
likely, however, that action supporting
s1ssbs bill will be taken shortly. and that
sss4atk5fts will be made to bring the free
,one question into line With national
marine policy.
Hssrings were held before the SUBJ
committee on Senate bill $40. which
.s,cyides "for the establishment, op-
srstion and maintenance of foreign
t,sde zones in ports. Of entry Of the
limited States, to expedite and cncou--
,rs foreign commerce md for other
ilSd.poses." Some opposition arose to
tsfssa aplan, but much testimony was pre-
rented in favor Of it.
Advantages of Free Zones
One thing that would be brought
ibout by the establishment Of free
f zones, it was pointed out, would be an
increase Of commerce, with a resultant
increase in the ocean carrying trade
A large percentage of the tonnage en-
tering American ports from foreign
countries is in ballast, and in many
leases st the present time in order to
secure sufficient cargo to make out
ward voyages profitable vessels are
obliged to call at two or three American
n.gorts before sailing.
QQick removal of freight, it is de-
clared, would be aided under the free
selgne system and much delay in weigh
~ ing and sampling goods would be done
iwsy with. This delay is due to Gus
toms operations in separating dutiabl
from undutiable goods, and its ein,i-
nation, it has been estimated, would
,astean a saving Of several days in the
case OF many cargoes.
Customs Delays Avoided
The free zone is to be q segre-
gated area intended for freighting
aud merchandising operations incident
70 foreign trade free from customs fn-
itesruptions, with the exception Of pre-
cautions against smuggling. When ar
sisies from a zone are sent into any
Of the customs territory Of the United
States, however, they would be sub
NsFct 70 all Of the customs laws and
you'd pay the same rate of duty as arc
imposed on like articles imported from
iforeign country. Raw materials could
Se brought into the free zone and man
HActured and exported to foreign mar
.-se.s, as is done in a number of Euro
pean ports
From the standpoint Of shipping, it
argued, to furnish facilities of this
tnd Will attract tonnage from all over
ne word, as is stated to have been
Aaown by experience in Hamburg and
other ports.
~ A1osner point that has been brought
aas ~ the advocates OF the system is
ast Tree zone would make it possible
Avoid the complications of bonding
sad drawbacks in the case OF re-
exported goods. Under the present
sssNn, 1t has been stated, where i'm
yOl1ed- goods are merely -epacked in
.sis country, the importer goes through
h,ne elaborate details OF paying duties
aao then is subj jected to further red
Nsse. expense and loss in the process
sss1ing the duties paid refunded in
as shape Of drawbacks.
Owner Controls Goods
~ fs also pointed out that the free
@he would give the owner at all time
nntroi OF his merchandise, which is
leg as an important advantage over
~ bonded warehouse system. Ma
';..aery could be assembled here, manu-
.ssa!lhg carried on, where domestic
se.Ioreign materials were combined,
|"..,ytaerwise, and showrooms could he
nSs,Pped and goods sold to buyers
financial advantages are declared to
I'm tne release under the free zone
nsIsm Of capital now tied up by Gus
~lns Fegulatlons, while the more rapid
1tYsment OF ships and cargo would
sAe more rapid turnover possible
Ma correspondening decrease in cap-
al requirements.
Establishing OF free ports in this
~~.atTy, 1t has been stated by the
vvasmner Of Commerce Of the State OF
~ iork, would materially assist the
S'so states TO meet in foreign mar
ssss the competition for trade from
'fes ports In Europe.