New-York tribune., 1921-10-10

the Alexandria Produce Association.
IN this correction W. J. Love, vice
president of the Emergency Fleet Cor
poration, said last Friday that at has
come to US confidently that an agree
ment existed within the Alexandria
General Produce Association that the
business would be given to the British
provided the bids OF all companies
were TIC o-:1c."
1t is known that there is a strong
suspicion on the part Of some of the
officials of the board that the British
conference lines have a system of de-
ferred rebates, but they have no con-
elusive evidence in support of this.
They point to the fact that the British
secured the contract despite lower bids
from the board.
Offer That Didn't Help
Following the award of the contract
to the Liverpool lines, the Shipping
BOARD continued its negotiations with
the British companies in an effort to
reach an understanding before taking
drastic action. The board was repre-
sentcd in London by Captain F. +. Fer
ris, though al moves were directed
from Washington by Mir. Love. After
considerable delay the British offered
the board so per cent of the eailings
from Alexandria on the direct trade to
the United States, but would make no
concessions on the traffic to the United
Kingdom. According to Mr.. Love the
offer OF one-half OF the sailings did not
include one-half of the shipments. On
the contrary, he asserted the shippers
were under an iron bound contract to
turn their goods over to the British.
Also all Egyptian cotton is sold on tho
basis of cost, insurance and freight, de-
.lvered IN the United States, 30 that the
purchaser in this country is not able to
specify that the cotton shall be shipped
in American vessels.
In the circums stances the board found
it necessary either to abandon all at
tempts to get part of the Egyptian cot
ton trade or to prepare for more drastic
steps. In deciding upon the latter
course the board was confronted with
two alternatives: 1t could start q rate
war or bar these British ships from
American ports. The first was adopted
as the initial action.
Text of the Law
If this fails the board is expected to
invoke the authority Of Section 14a of
the Shipping act of 1916, which reads:
"Thc board upon its own initiative
may, or upon complaint shall, after due
notice to all parties in interest and
hearing, determine whether any person
not 3 citizen of the United States and
engaged in transportation By water of
passengers or property
"1--has violated any provision OF Sec
tion ID, or
"2-is party TO any combination,
agreement or understanding, express or
implied, that involves in respect to
transportation of passengers or prop
g Iofo
bates or any other unfair practice
designated in Section IA, and that ex-
cludes from admission upon equal
terms with all other parties thereto q
common carrier by water which is
citizen of the United States, and which
has applied for such admission
"lf the board determines that any
such person has violated any such pro-
vision or is party to any such COM
bination, agreement or understanding,
the board shall thereupon certify such
fact TO the Secretary of Commerce. The
Secretary shall thereafter refuse such
person the right of entry for any ship
owned or operated by him or by any
carrier directly or indirectly controlled
by him, into any port of the United
States, or any territory, district or pos
session thereof, until the board certifies
that the violation has ceased or such
combination, agreement or understands
ing has been terminated.'
The board never yet has applied this
section of the law. 1t is the belief Of
the commissioners that in the Egyptian
cotton case the facts clearly point to
discrimination against American ves-
sells, and that enforcement of it's pro-
visions would be justified
The average movement OF Egyptian
long staple cotton from Alexandria to
the United States has been about
10000 bales year, 100000 to the
United Kingdom and 100000 to other
countries.