New-York tribune., 1921-09-12
Agreements Between Rail
roads and Foreign Lines
Charged With Causing
AmericanV Vessels s'Tie-Up
Contracts Assailed
In Marine Report
Findings Given Senator
Jones Assert Provisions
of Ship Act Are Ignored
From The Trlbune's Washington B..reau

From The Trlbmne's Washington Bureau
WASHINGTON. Sept. 1.-THE direct
charge that secret agreements between
american railroads and foreign ship
ping companies, or American lines
with foreign connections, have resulted
IN tying up the great bulk of the
United States Shipping Board vessels,
is contained in long report prepared
for Senator Wesley L. Jones, of Wash
ington, chairman of the Senate Com
mlttee on Commerce and author of
much shipping legislation, it was dis
chant Marine Association.
Senator Jones has sent the report.
which he describes as having been
made by "an experienced railroad man
tremendously interested in the up-
building of the merchant marine" to
Chairman Lasker of the Shipping
Board, with request that earnest
consideration be given to suggestions
the report contains.
Failure to enforce the chief proyi-
slons OF the merchant marine act, of
which Senator Jones was the chief
sponsor, has stifed the development of
American shipping" says statement
issued by the National Merchant Ma
rine Association.
This is especially true Of Section %
of the bill, providing for preferential
railway rates on goods shipped in
American vessels, and the effects are
strikingly set forth by the memoran-
dunn prepared for the Senator. The
marked shrinkage in the volume of
ocean freight due to the trade de-
preston of the last year has affected
American. shipping far more severely
than foreign. the proportion of our
foreign commerce carried by our own
vessels having fallen from more than
SO per cent of the total, in 1920, to
hardly more than 80 per cent this
year."
Foreign Lines Given Cargoes
A study Of tho situation by the Ship
ping Board, the report says, will show
that, due to the large fleets of foreign
flag vessels, operated by the companies
with which the trunk lines have estab-
lished contracts, these concerns have
been able to control. at the expense Of
Shipping Board vessels, transportation
of hundreds. if not thousands Of car
goes, aggregating many millions of
tons of freight on which the revenue
has totaled hundreds of millions Of
dollars.
"The discovery of these secret con-
tracts and their enforced filing with
the Interstate Commerce Commission
(Which is now required) should enable
the Shipping Board" it is added, "to
definitely determine the principal cause
for the success of foreign flag vessels
in transporting approximately two
thirds of our export and import sea-
borne commerce."
Investigation, 1t is declared, will re-
veal that under the terms OF the con-
tract the traffic officials and representa-
tives Of the trunk lines at home and
abroad have used their influence and
expended their energies preferentially,
if not exclusively, in Behalf of the
booking Of both export and import
freight and of passengers in connec-
ton with their foreign flag allies.
Had Section 2S of the Merchant Ma
rine Act been put into operation" the
report continues, "it may be confident
ly stated that few, if any, Shipping
Board vessels would now be tied for
lace of cargo"
Commodity Companies Urged
In additi$n to the enforcement Of a
system Of preferential rail rates on
goods for American vessels the report
urges the Organization and operation of
"commoditA transportation companies"
subject to the joint authority Of the
Shipping Board and the Interstate
Commerce N}OmmlSslOn, empowered to
fix joint tt ough rail and ocean rates
through Az erican ports via American
ships, the Hips to be operated in con-
junction Vi h a nationally controlled
rail distri(l ton Of commodity group
ings basedH pom a predetermination as
to their OH gin, destination, quantities
and many Hher factors.
"Under e terms of the Webb act
and the Ed act" it is added, "the or
ganization Il # such companies can be
legally untvrtaken. For example, the
-four mille1x of the country can legally
organize an export -four transportation
corporation which would, in effect, rep
resent the authorized pooling Of -four
tonnage, it's routing and, in general,
establish itself as the authorized -four
transportation agency of the Shipping
Board, and under Section Of the mer-
chant marine act could be authorized
by the Shipping Board to deal with
both rail and ocean rates and handling
of all export -four, of rail and ocean, as
the exclusive export -four transporta-
tion agency of the board"
Support for Merchant Marine
The creation is urged of similar COM
modify transportation companies, au-
(Cor1lnued nm mana thrae\