New-York tribune., 1921-06-23
Japan. Seeking.
TO Retaliate ON
American Ships
Preferential Rail Rates Are
Advocated as Offset 10
Provisions of Section %
of Merchant Marine Act
Z. S. Holds the Advantage
Japanese Service via the
Panama Canal to Ports
of Atlantic Is Planned

New efforts on the part of Japan
70 meet the competition of American
ships are reported.
Section oS of the Jones bill, which
nrovides for preferential rail rates on
Goods carried in American vessels, has
sroused considerable agitation in Jap
onsse commercial circles 1t is now
stated that number of Japanese
chambers of commerce are backing a
movement for preferential rates on the
railways Of Japan for Japanese goods
shipped in Japanese vessels. Meetings
nave been held between the promoters
Of the movement and Japanese gov
eminent officials.
japanese Service Via Canal
In addition, Japanese newspapers
comment upon the launch Of a 10000
ton Japanese cargo steamer for the
Nippon Yusen Kaisha service from
japan to New York via the Panama
Canal as the first step in a definite
reply to Section % of the Jones bill
Hitherto, it is pointed out, most jap
snese exports TO America have passed
through United States Pacific ports,
even though the final destination may
have been in the Eastern States after
a long railroad haul.
Commenting upon these develop
ments, the British publication The
Syren and Shipping says that while
nothing is said about retaliation OBJ
viousy retaliation is the reason. "In
time. no doubt" that paper adds, Sen
stor Jones and his adherents will real
ize what they are doing, which is moth
ing less than pushing the American
merchant marine to destruction. The
frog burst from surplus of pride!"
American shipping men point out
Of preferential rail rates will do little
TO Offset the advantage gained by
American shipping through similar ac-
tioa in this country. The Japanese
rail hauls will average far less in
length than those in this country and
in most cases will be discounted by
the freight savings made in this coun-
Try.
Toll Exemption a Factor
In sending Japanese vessels through
the Panama Canal to American Allan
tic ports to escape the rail differentials
Japan Will be facing the probability
Of the passage Of legislation which
will exempt American vessels from
canal tolls, A bill exempting vessels
in the coastwlse trade Of the United
States has been favorably reported to
The Senate. and if this is enacted ad-
ditional legisl&"}cn is expected which
would grant ce:*E- option to all American
vessels in for-es trade. In this way
another differcH5iai would be created
against japanese vessels in competi-
ton with American ships.
Talk of merger OF the Japanese
shipping companies, chiefly with view
to meeting foreign competition more
readily was revived in Japan recently.
but the Nippon Yusen Kaisha Company
is reported to have issued q statement
in which it is declared that amalga-
nation viii not cure the ills from which
Japanese shipping is suffering. The
Nippon Yusen has always followed a
drastic policy Of depreciation, it is
pointed cut, and its. tonnage is now
carried at very low book values. AS
this is not the case with most of the
other Japanese companies, it is obvious
that difficulties would be met with in
arriving ct basis of amalgamation.