New-York tribune., 1921-10-09
Roads and Ship
Lines in Fight
On Canal Tolls
Rail Carriers Prepare for
Move TO Cat Transconti.
mental Rates in Order 10
Meet Water Competition
|. G.. c. 10 Hold Hearings
Railroads Are Facing a Los
ing Game for Pacific Ship
mentsDesf'ned forEurope

.reoaration for the hearings to be
ssld by the Interstate Commerce Com
K..ion from November II to January
Il in a dozen cities, on their applica
ion for permission to put lower coast
,e-eosst rates in effect to meet water
sempetisior. Services by the steam
,hlp lines between the Atlantic and the
Pacific have been developed to the
,oint where shipments by rail have
seen seriously curtaled and the com
ssnis, face heavy loss in this business
q Al the same time that the railroads
s;s making a fight for readjustment
m transcontinental rates the steam
ship companies are supporting Senator
Borah and other members of the SEN
IT. and House in the effort to exempt
American vessels from payment of
ells through the Panama Canal
The railroads and the steamship
unes occupy opposing positions in this
double contest, but the situation is
unique in that the rail carriers are
holding a.oof from the canal tolls bill,
while the ship companies are standing
back from the attempt to resdjust
overland rates. Success for both
movements would work to the advan-
hge Of shippers on the two coasts in
sompetition with other countries, but
would place handicaps upon manufac-
turers and producers in the interior.
Roads Apply for Relief
The Southern Pacific Railroad has
fled an application with the Interstate
Commerce Commission for relief from
the fourth section, which establishes
not be charged for long than short
hsuls on shipments from the Pacific
to New York by way of the Sunset
Route to Galveston and New Orleans.
and from there by the Morgan Line to
New York. The Northern carriers
lave fled an application for fourth
setion relief on westbound com
ksdities
/. J. Spence, director Of traffic for
The Southern Pacific, said yesterday
that the proposed reduction in trans
continental rates involves not only
domestic business. but also affects
pointed out that the rate on canned
goods from San Francisco to New
York is 75 cents for 100 pounds,
against water rate from San Fran
cisco to Liverpool of 81. AS a result
of this situation, he said. the railroads
cannot compete in handling these West
ern products for the European trade
unless the steamer lines from New
York to Liverpool would agree to re-
duction in rates which would permit the
rail carriers to participate in the
cations, Mr.. Spence stated, that the
ship lines will make any such de-
gease.
While the Interstate Commerce Com.
! ,sssion has consented to reopen the
/ tznscontsnental rate question, the
Gtrnt Of the relief which will be al
hved promises to be limited. In de-
.asing somewhat similar case last
seek, brought by the trunk lines
.gainst carriers running from the in
.ssior to Gulf ports, the commission
srn lines and stated as a general
Principle that it is reluctant to give
further relief from the fourth section.
The existing differential on coast to
coast rates. as compared with interior
rstes, was established during the war.
/ when vessels plying in the intercoastal
| kade through the canal were with
trswn for operation in the more profit
sbe transatlantic traffic. With the
/ sslimination OF canal competition, the
| ts.y OF Spokane led in the fight for
| tie restoration of the fourth section
provisions, which resulted in raising
Ae trans-continental rates.
Encroaching on Roads
:. Since the war a number OF COM
sanies have re-entered the canal serv-
| ICES and have gradually been encroach-
ae upon the railroad business. In spite
1 no ra4a
I By the keen steamship competition. the
ssser lines, protected against foreign
INVASION, have found the intercoastal
traffic TO be the most profitable. Rates
proposed by the Southern Pacific and
| the Northern lines are based upon
| present steamship tariffs.
l :. The Southern Pacific operates the
Eorgan Line from Galveston and New
Orleans 70 New York II owns a total
| twenty-three vessels, of which nine
are now idle for lack Of trade. II
es application for relief from the long
iad shorc haul provision is successful,
Re company expects to provide en-
reynert for these ships.
AZ hearing last spring in Congress
% the bill 20 exempt coastwise vessels
from the payment Of Panama Canal
tails, representatives Of the transcon-
hnental railroads opposed enactment
-sf such law They stated that as
ns American coastwise traffic Is pro
ksted against foreign competition, the
Proposed refund OF tolls would serve
sHsreiy as Z gift 20 the steamship lines,
sEaolng them 10 cut more deeply into
1s business Of the rail lines. The
sHten would fall upon all the taxpay-
~ Of the country, it was asserted, and
! VOID have no nppreciabie effect in the
/, asaolishment Of an American mer-
| saant marine. This Is the attitude OF
.as railroads to-day, though they have
| s9' TAKEN an active part in fighting
- boSsh bill The rail carriers base
asir arguments entirely upon the
sc'ncFnic aspects Of the situation and
| ave not gore into the international
,s,1rec. such az the moral obligation
:. tne United States 20 observe the
s.ofisipns Of the Hay-pauncefote
he Borah bill s regarded In Wash
| sfszIon az test Of the sentiment Of
sssASsess. 4 successful It will be fol-
| tLwea ~ another bin 10 exempt
s-.-ssiea7 vessels in foreign trade from
j ysmsnt u canal tolls. Recent reports
I ~ ~ me Capitol indicate that there is
e. ss's'ent sppport for the Borah meas
| 70 carry Z through the House and
| I. se's anf an - tne oro~i%ont "kfe
| ~ uneerstoo5 that Mr.. Harding
| n@ss nsa 70 postpone consideration Of the
| So So Dl4h Guestion until the confer
| 80 'h 1i1arnament has been con
| &. II ia believed that he will sign
| l,ses American Steamship Owncrs'
sse,eaation some weeks ago fndorsnd