The Birmingham age-herald., 1921-12-02
ROADS ID ANNUL
 CONTRACTS WITH
 FOREIGN SHIPS
Thompson of Shipping Board Outlines Policy of Com mittee-WouId Encour-
 age American Marine
By Associated Press

Washington, December 1.-Wll- lingness to abrogate preferential contracts with foreign shipping in- terests was expressed today before shipping board officials, six of the eight American railroads having such agreements. Two of the roads which were invited to appear before the shipping board interstate com merce committee as being party to preferential contracts announced that those contracts which they had held had expired and would not be renewed.
 The roads whose representatives agreed to recommend the cancel1a- tion were Baltimore and Ohio. North ern Central. Southern.
 The Pennsylvania railroad, accord ing to it's general manager Robert c. Wright. had only a business un- derstanding with the international merchant marine which could be easily cancelled if the board desired.
 The hearings were adjourned today pending the filing by the individual roads of formal statements as to their intent.
 M. D. Wood, general foreign agent of the Grand Trunk. said it would be necessary to discuss the proposals further with his principals before he could act. The tenth railroad repre- scented at today's hearing, the Chi cago, Milwaukee and St. Paul, offered to cancel It's agreement with a Jap anese line if the board would guar antee to replace the business, which he said inevitably would be lost by such action.
 Thompson Statement
 Commissioner Thompson. who pre- sided, outlined the policy of the com mittee in the following statement:
 Any exclusive or preferential con- tract or agreement between any American railroad or any foreign flag shipping company is a menace to the success of ships operating un- der the flag of the United States. The American commerce to the ships of other nations operating in competi- ton with our own. Section 2S of the merchant marine 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 number of railroads in the United States have such exclusive or pref erential contracts with foreign flag ..t,f .t-. t.. An with the spirit of the American Con gress.
 ''It also is of record that more than two and one-half million tons of cargo were interchanged last year between these railroads and ships op- erating the flag of nations other than the United States. This is a condi- ton immediately 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 American vessels. This committee first approaches the ques- ton of these contracts In a spirit of desire for those corrective and CO., operative measures as will insure that the influence and organizations
 
 agencies of promotion for the exten- sion of American commerce in vessels of other nations, 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 transporta- e ton interests represented here rec ognize that any loss arising through the initial upbuilding of an Ameri- can merchant marine necessarily J falls upon the American public. The board believes that any American en- terprise, particularly those the bene- ficiaries of government support, should make every effort to co-op- crate in full and in measured degree with any division of the government whose duty 1t Is to build. foster and promote American enterprise.
 "To bring about such corrective measures. this meeting Is held"