New-York tribune., 1921-10-04
Ship Board Will
TakeU UpF' oreis:la
Policies To-day
|. Nj. Nj. Hearings Here VIII
Decide Whether Boats Are
TO Be Allocated to Firms
With Alien Connections
Will Pass ON Contracts
Extent of Control Over
Agreements With Owners
in Europe To Be Settled

Two important policies will be de-
lined by the Shipping Board as a result
of the hearings beginning to-day on
the relations between the international
Mercantile Marine Company and the
British government The first Of these
is the extent to which the board will
exercise supervision over contracts be
tween American steamship companies
and foreign interests. The second is
whether the board will continue to al
locate vessels to companies which
handle ships under foreign flags or
have other alien connections.
The I. Nj. M. hearing is test case
upon which the board will base its de-
cisions. In the Shipping Act of 1916
the board is given the authority to ap-
prove or disapprove any agreement on
rates, division of trade and practices
which would restrict competition. This
legislation requires all companies to
file copies of their contracts with the
board in Washington. Tho power con-
ferred in the act has never been en-
forced completely and, while the vari-
Gus companies have filed their agree
ments, the board has not yet made
decision in specific instance.
In addition TO demonstration of
policy in the I. NJ. M. case, the board
still has to pass upon the agreement
between the American Ship and Com
merce Corporation and the Hamburg
American Line and the contract be-
tween the North German Lloyd and the
defunct United States Mail Steamship
Company, which has been continued by
the United States Lines. The Interstate
Commerce Commission has also gath
cred information on agreements be-
tween American railroads and foreign
steamship lines, which will come later
before the Shipping Board for review.
Preference to American Firms
The policy of the board in the past
has been to give preference to strictly
American companies in the ALLEGATION
CT vessels for operation, but it has
also assigned large numbers to such
companies as the I. NJ. NJ, which han
die ships under foreign flags or have
other alien connection. AS result OF
the hearing to be held to-day and to-
morrow the board will make final de-
at present point to a decision to con-
fine ALLEGATIONS entirely to concerns
without foreign affiliations.
The |. NJ Nj. has operated as many as
seventy Shipping Board vessels at one
time. These have been surrendered or
Withdrawn for various reasons, chiefly
because of the shipping depression, un-
III today the company has only two
government ships. One of these Will
be returned soon
2. A. S. Franklin, president Of the
l. NJ. NJ, it was learned yesterday, will
ask the Shipping Board for a show
down of policy. He will submit facts
to show that the stock ownership of
the company is 100 per cent American,
hut that IS per cent of its vessels fly
the British flag, per cent Belgian and
only II per cent the Stars and Stripes.
1t has been the contention OF Mr.
Franklin at previous hearings that the
failure of the board to arrive at def
mite decision has Handicapped the COM
pany in that its officials did not know
whether they could count on the sup
port of the board.
Another point which Mr. Franklin is
expected to develop is the statement
that last year, when the company of
fered S2s 900 for approximately
twenty ex-German vessels, including
the Leviathan, u was prepared to spend
total of more than $60,000,O00 to re
condition the vessels and run them un-
der the American flag.
Would Sell Foreign Bottoms
At the hearing before the board last
spring Mr.. Franklin produced docu-
ments to show that the company, in
order to define its status clearly, Of
fered to sell its foreign tonnage and
ccnfire itself entirely to American YES
sells
The hearing will be held before the
eati7e board. Commissioners f. |.
Thompson and r. V O'Connor were in
New York yesterday. Chairman Las
ker arrived last night Members OF
the House and Senate have been in
vited to attend, but it is expected that
very few will be present.
The Shipping Board derives its au-
thority TO pass upon agreemnts be-
tween American companies and for
elgn governments or private interests
from Section 10 of the shipping act
hlch provides that If such under
standings are approved by the board
they shall be exempt from the .erms Of
The antitrust laws Otherwise the
companies are subject to prosecution
under the Clayton act and the Sherman
antitrust law and also under the va
rious sections Of the shipping act and
tne mcreHaat marine act OF 1920. III
Guided in the agreements which must
be approved by the board are confer
ences on rates, allotting Of ports, pool
Ing Of profits division of commerce,
restricted traffic and sailngs.
The shipping act provides that agree
Fnents IN existence before the law was
enacted, in 1916, should be lawful until
passed upon By the board. For this
reason the |. N. ". pact with the Brit
~ government, which originated in
1909, has not been disturbed, while the
recent contracts between American and
German companies have not been made
board.
Tae board is expected soon TO takc up
tne Hamburg American and North Ger
man Lloyd agreements, but no date has
5et been SET These contracts have
been put into effect With regard to the
point use u facilities, and the various
companies hare been acting as agents
Tor the others, but the more contro
vc.sial features such as the pooling o.
yrONtg and 4evei1rfuenf af frado rnr4o.