The New York herald., 1921-12-02
RAILROADS TO CLOSE
FOREIGN CONTRACTS
Willing TO Abrogate Prefer
ences for Shipping Inter
ests Owned Abroad.
ST. PAUL ASKS GUARANTY
Policy of Board Is to Force
Trade to American
Vessels.

WASHINGTON. Dec. Willingness to
abrosato preferential contracts with for
eign shipping Interests was expressed TO-
day before Shipping Board Officials by
six. OF the eight American railroads hay
ing such agreements Two OF the roeds
which were invited to appear before the
Shipping Board Interstate commerce
committee as being party to preferential
contracts announced that those con-
tracts which they had neld had ex-
pired and would not b. renewed.
The roads whose representatives
agreed to recommend the cancellation
We're: The Baltimore and Ohio. North
ern Central. Southern, Mobile ana Ohio
and Boston and Albany. The Pennsyl-
vania Railroad according to its general
cratic manager. Esooeri & Wright. hr,
only business understanding with tit
Int rational Merchant Marine which
co:'d pe caaiiy cGncellei ic tic buur.
desired.
The hearings we're adjourned Today
pending the filing by the individrai
roads OF formal stateme nts as to their
intent.
d. d. Hooo, general forcien agent o.
be necessary to discuss the proposed
abrogation further With his principals
before he could act. The tenth rail-
road represented at to-day's hearing,
the Chicago, Milwaukee and St Paul.
oIIefcU 10 cancel itS ag-c en1ent with a
japanese lire II the board would guar
antee to replace the business which. he
said. inevitably would be lost by such
action.
Exclusive Contracts a Menace.
Commissioner Thompson. who presided
outlined the Policy of the committee
in the following statement
Any exclusive or preferential cor
tract or agre eInent between any Anieri-
can railroad and any foreign flag ship-
ping company Is q menace 10 the ste
cess OF ships operating under the flag OF
the United States. The resulting effect
Is the diversion OF American commerce
TO the ships Of other nations operating
In competition with our own. Section 2S
OF the merchant marine act, 1920, clearly
defines the intent OF Congress that
American railroads be preferential feed
crs or tonnage for American ships. Yet
II is of record before the United State
Shipping Board that u number OF rail-
roads in the United States have such ex-
elusive or preferential contracts with the
foreign flag shipping conlpanijs In dircc
conflict with the spirit OF the American
Congress.
'It Is also Of record that more than
two and onc-half million tons Of carft
were interckanced last year between
these railroads and shios operating un-
der the flags OF nations other than the
United States. This is condition aG-
mittedly requiring correction, recog,lis-
ing the full force and effect of the ca-
actnlent clause of the MERCHANT mariEc
act, which clearly provides that create.
portion OF the commerce OF the Unite.
States be carried in Amer lean vessels.
To Extend American Trade.
This committee first approaches the
question of these contracts in q spirit OF
desire for such corrective and coopera-
tive measures ar will insure that the ia
fluence and organizations of the rail
carriers, at present agencies OF promo
tion for the extension OF American COM
merce in vessels of other nations. be
utilized for the extension Of American
commerce In vessels operating under the
registry OF the United States. The
United States Shipping Board is assured
that the rail transportation interests
represented here, parties to these adj
verse agreements. recognize that any
losses arising through the initial up
building of an American merchant ma
rne necessarily falls upon the American
public. The board believes that any
American enterprise, particularly those.
which the beneficiaries OF Government
support, should make every effort 10 CO.
operate IN full and unmeasured degree
with any division of the Government.
whose duty II is to build, foster and pro-
mote American enterprise.
ITO bring about such corrective con-
dition this meeting between representa-
tives OF the railroads possessed of these
agreements and this committee OF the
I-nitAd states ShlpnIng Roari Is lIeld.N