The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-12-07

WORKED WITH
FOREIGN SHIPS s
Shipping Board Dis
cusses With Rail
road Officials Pre-
ferential Contracts
With Foreign Ship
ping Interests

ping interests
Washincton, Dec 1.-Willlng-
ness to abrogate preferential con-
tracts with foreign shipping inter
ests was expressed today before
shinpirg board officials by six Of
the eight American railroads nav
ing such agreements. Two of the
roads which were invited to ap-
pear before the shipping board in
ters.atc commerce committee as
being rarty to preferential con-
tracts. announced that those con-
tracts which they had held had ex-
pired and would not be renewed.
The roads whose representatives
agreed to recommend the cancel
iation were: The Baltimore and
| Ohio, Northern Central, Southern,
Mobile & Ohio, and Boston &, AL
bany, The Pennsylvania railroad,
according to its general traffic
| manager, Robert c. Wright, had
only a business understanding with
the International Merchant Marine,
| which could easily be cancelled #
the board desired.
The hearing was adjourned to-
day pending the filing by the indi-
vidual roads Of formal statements
as to their intent.
D. o. Wood, general foreign
agert { the Grand Trunk railway.
saio it would be necessary to dis
cuss the proposed abrogation fur
ther with his principals before he
| could act The tenth railroad rep
resented at today's hearing the
Chicago, Milwaukee & st. Paul, Of
fered to cancel its agreement with
a Japanese line if the board would
guarantee to replace the business.
which, he said. inevitably would be
lost by such action.
Commissioner Thompson. who
presided, outlined the policy Of the
| committee in the following state
| nent:
Any exclusive Or preferential
contract or agreement between any
| American railroad and any foreign
flag shipping company is men
ace to the success of ships opecat-
ing under the flag Of the United
States The resulting effect is the
diversion Of American commerce
to the ships Of other nations oper-
ating in competition with our own.
Section 2S Of the merchant ma
rine act, 1920, clearly defines the
intent Of congress that American
! railroads be preferential feeders Of
| tonnage for American ships. Yet it
IS of record before the United
States shipping board that a num-
Der Of railroads in the United States
have such exclusive or preferential
| contracts with foreign flag ship
ping companies in direct conflict
with the spirit OF the American
| congress. 1t is Of record that more
than 2.500,000 tons of cargo were
| interchansed last year between
these railroads and ships operating
under the flag Of nations other than
the United States. This is a con-
dition admittedly requiring correc-
tion. recognizing the full force
and effect Of the enactment clause
Of the merchant marine act which
clearly provides that "a greater
| portion Of the commerce of the
United States be carried in Amer
ican vessels.
This committee first approaches
the question of these contracts in
a spirit Of desire for those correc-
tive and cooperative measures as
will insure that the influence and
organizations Of the rail carriers
at present agencies of promotion,
for the extension of American
commerce in vessels of other ma
tons, 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 adverse
agreements, recognize that any
losses arising through the initial
upbuilding of an American mer-
chant marine necessarily falls upon
the American public The board
believes that any American enter
prise, particularly those the bene-
ficiaries Of government support,
should make every effort to cooper
ate in full and unmeasured degree
with any division Of the govern
! ment whose duty it is to build. fos-
ter and promote American enter
prise
CD