The New York herald., 1921-10-08
CABINET PLANSAID
FOR AMERICAN SHIPS
Jones Act to Become Effective
for Upbuilding of the
Merchant Marine.
RATE WAR TO BE STARTED
U. s. Board to Fight for Share
of Egyptian Cotton Trade;
Shepherd Comptroller.
spscia, Despatch TO THE New York HERALD.
New Yort Herald Bureau.

spccia, Despatch 10 THE New York HERALD.
New York Herald Bureau.
Washington. u. C.. Oct. I.
President Harding and members of his
Cabinet devoted three hour discussion
to-day TO future policy with regard to
the building of an American. merchant
marine and the present situation Of
American shipping. Following the Cab
met session the President held con-
ference with Secretary Weeks and Sec
retary DENLY. to determine whether in
future the navy OF the Shipping Board
should furnish army transports.
No official announcement was made
with respect to the conclusions reached
In either case. but 1t Is known that the
Administration contemplates making eff
fective the Jones law for the upbuilding
of the merchant marine.
Later In the afternoon vice-Presi-
dent Love Of the Shipping Board, head
Of the ship operations division. an
nounced q rate war by American ves-
sells against British ships in the Egypt-
ian cotton carrying trade from Alex
andria. He outlined in detail the po-
sition of the Shipping Board and an
nouneed sharp cut in rates. His state
ment said British interests had engaged
In a secret agreement to the disadvan-
tage of American ships $40
President Harding made It known to-
day that he regarded the shipping situa-
tion as the most important constructive
problem before the Administration. It
was Indicated that every effort will be
made to make the Jones act effective.
Wood Ship Builders Appeal.
This means that the recommendations
of the Shipping Board for putting into
effect section 36 of the act, which calls
for the abrogation of treaties or trade
agreements which inhibit the granting
OF preferential tariff rates to goods ship
ped In American bottoms, PROBABLY will
be favorably acted upon by the Admin
istration.
Action in the near future also Is likely
ON section % of the act, which covers
combined bills OF lading and Joint rail-
road and ship rates. Coincident with
these developments it was made known
that the wood ship builders will ask the
Shipping Board at a hearing Tuesday, to
summon to Washington Edward N Hur-
Icy, Charles Piez, Charles M. Schwab
and other former officials of the board
and tho Emergency Fleet Corporation
to give testimony on what, if any,
promises or pledges they made orally to
the wooden ship builders during the war
The wooden ship men want to take up
claims and cancelled contracts. They
claim consideration for assurances given
to them by officials who subsequently
left
The Shipping Board to-day elected
Col. Edwin A. Shepherd Of Atlantic
Highlands. N j.. to be comptroller Of the
board and the Fleet Corporation. Col
Shepherd. who Is a native of Chicago,
was a colonel In the ordnance depart
nlent Of the army during the war. After
leaving the service In 1919 he became
Washington representative of the REM
irgton Arms Company. Recently he has
tion for that company, the Reeves Do
mestic Utilities Company and the Spon-
sci Joints Company.
Explains Cotton Contracts.
w. J. Love. vice-president of the
Emergency Fleet Corporation. who has
been conducting the negotiations on
rates on Egyptian cotton, this afternoon
gave out the following statement in ex-
PLANTATION of the position taken by the
board:
with the liners principals in England.
the former offered to relinquish to
American bottoms so per cent. OF the
direct sailings between Alexandra and
the United States. stating that It was
not possible for the liners to make any
arrangements with regard to the in
direct traffic; that is. cotton moving to
tho States with transhipment at an
f-I, Lot ,f~,er tHoA ~ =,