The Barre daily times. (Barre, Vt.) 1897-1959, 1920-08-09
PREFERENTIAL RATES
ARE EXPLAINED
Admiral Benson Says the Provisions
Inserted in the Law Are De-
signed to Offset Discrimi-
nation By Other
Nations.

Washington, D. c., Aug. 9.-Proyi
sions of the merchant marine act Civ
| ing preferential rail rates on export
and import commodities carried il
American bottoms are in line will
practices adopted in Germany, Japan
France, Spain and other countries, Ad
miral Benson, chairman of the United
States shipping board, declared in q
letter to Commissioner of the Port w
I. Christensen of Seattle, Wash, made
public here to-day.
These provisions were inserted by
Congress at the request OF the shipping
board, Admiral Benson said, and are
designed to offset "the countless dis.
ordinations by other nations against
American shipping with which the
shipping board ships and privately
owned vessels OF the United States
have had to contend"
ALLOWING a 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 application TO
cargo carried in vessels of its nation
ais. The board of trade report to the
British government made in 1918 re.
garding shipping policies conceded that
the control of such practice cannot
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 Canadian
ports. Admiral Benson said that
threats of foreign carriers to transfer
their Pacific coast operations to Van.
couver, 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
o. 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, if
any, 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 ships
in American yards, the benefits Of
which should be apparent to the mer-
chants in other business interests of
Puget Sound"
Discussing the giving Of preferen-
tiaf rates in other countries, the chair
man said that France had given 20
per cent discount upon export freight
moving in French vessels 70 New york
and other ports. including those Of
Great Britain, and that Spain also was
using that method along many other
preferentials in the way OF subsidies
and subventions with Spanish 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 70 the
seaports Of that country. a differentisl
quite sufficient to have enabled them in
the absence Of like preferential rates
within the United tSates for our own
ships, 70 control the rail routings with
in the United States, and they have
done so in many instances TO the dis
Of American ships and, az
times. tocertaiu American ports