New-York tribune., 1921-10-08
Roads Won't
Make Fight ON
Export Rates
Trunk Line Officials Assert
the Jones Shipping Act
Does Not Affect Income
of the Nation's Carriers
Harding and Shipping Board
Are Said 10 Favor Post
ponement During Parley

Railroads have failed to take part in
the fight on the enforcement Of Section
% of the merchant marine act because
their revenues will not be affected,
according to a statement made yester-
day BY officials of the Trunk Line As
sociation. From present indications
representatives. OF the Eastern carriers
will not ask for a hearing on the plans
Of the steamship owners and the Ship
ping Board for application of this
feature OF the Jones law, which would
contne preferential! railroad rates to
exports and imports carried in Ameri-
can vessels
Officials of the roads pointed out
that decision, on the part of the
shipping Board and the Interstate
Commerce Commission, TO restrict the
benefits of export rates to ships under
tho United States flag might mean
loss of traffic to individual roads and
would complicate tariff making
he theory of lower export rates, it
was explained, is to permit American
manufacturers to reduce the expense
OF transportation and enable them to
meet the competition Of other nations in
foreign markets. While tf,c lower rail
| charges reduce tho revenue of the
carriers they provide greater volume
of traffic, railroad officials declared,
and thus compensate for the difference
between the export and domestic tar
F. IFS. This was tho reason given yes
! terday for the decrease of rs per cent
on August 25 on iron and steel for ex~
port in the Central Freight Association
territory. This change, it was said
! has enabled American producers to
compete with steel manufacturers in
| Great Britain, France. Belgium and
/ Germany.
Nations Share in Benefits
At present both foreign and Ameri-
can vessels participate in the benefits
Of the preferential export rates. Sec
ton 2S Of the Jones act would prohibit
the railroads from granting this priv
ilege 20 shipments destined for alien
vessels. The law provides that this
section shall be enforced by the inter
state Commerce Commission, and the
Shipping Board, when the latter is
convinced that sufficient American
tonnage is avdi liable to care for the
traffic. Application of the law has been
suspended indefinitely, but recent
statements by Chairman Lasker and
President Harding Indicate that the
Admin stration shortly will come out
for full operation Of the legislation.
At the request of the President
Shipping Board commissioners in the
greater part of their time to study
of the possible effects of Section 2S
and also Section 34, which directs the
President to terminate such parts of
treaties as restrict the right of the
United States to impose discrimina-
tory duties and tonnage dues. While
steamship owners contend that en-
forcement of Section 80 would not in
volve serious retaliation on the part
Of other nations, there are intima-
tions that the President may defer Il
decision on this question.
Application of Sections % and 81.
which arc the controversial features
of the Jones act, is affected by the
| approaching Conference on the Linli-
tation of Armament The President
on several occasions has let it become
known that he desires to avoid posi-
BILE sources of international friction
| during the sessions of the conference
Because OF the wide protests from
Great Britain and other powers against
these parts Of the merchant marine
act it is understood that the Adminis-
tration is disposed to defer q definite
policy until the conference has ad-
journed.
The trend OF opinion among Ship
ping Board commissioners is against
sweeping enforcement of Section 2S
but to make it applicable on certain
trade routes where American vessels
have established adequate service. A
beginning may be made with respect
to few ports and lines to test re-
suits. It is anticipated that the first
trial will be made between Pacific ports
and the Orient.
Two Factors to Consider
Railroad officials yesterday pointed
out two factors which should be con-
sidered by the Shipping Board in
making the preferential rate law eff
fective. The first is that shippers make
contracts several months ahead on
the assumption that rail rates will be
unchanged during that period. The
second is that enforcement of the law
on routes where American lines are
not established would work great hard
ships to shippers. In explanation it
was said that in the latter instance
American manufacturers might find
suddenly that they would be required
to pay higher rates on certain ship
ineNts because American vessels would
not be available and that on shipping
by foreign steamers the full domestic
rail charges would apply.
Officials Of the Trunk Line Associa-
ton declared that individual railroads
might suffer from operation Of the
Jones law. AS an instance. it was said
that under the existing system, with
Identical export rates in effect for both
foreign and American vessels from
Boston and New York the traffic is di-
vided between the carriers serving both
ports. Under Section 28, il was stated
it might be found that there were
large number OF American vessels ply
ing from New York but few from Bos-
ton. Under these circumstanc the
traffic would largely be diverted from
New England to New York because of
the desire of shippers to take advan-
tage Of the lower rates offered on
goods sent by ships under the United
States fag.
RESORTS