The New York herald., 1922-06-28
HAWAIIAN co. QUITS
! RATE CONFERENCE
Lines Explanation Is That 1t
Is 'HoneycOmbed' With
u Dubious Practices.

The resignation of the American Ha-
wsiian Steamship Company from the
Atlantic Intercoastal Conference. COM
posed OF ship lines operating from coast
90 coast through the Panama Canal. was
handed in yesterday at a conference
session In the rooms at II Battery Place.
Commenting on the action, G.. J. Beck.
general freight traffic manager for the
United American Lines, managing agents
for the American Hawaiian Steamship
Company, made the sensational charge
last night that the intercoastal trade
had become "honeycomhed with dis
criminatory rates. rebates and other
Questionable practices"
Asked If the withdrawal meant a de-
cline in rates. one conference member
said he was afraid 1t did. but that the
remaining members would stick together
and take action as a body on any cuts
by outside lines and in accordance with
the circumstances of the case.
The move of the American Hawaiian
was regarded in shipping circles as in
line with the aggressive policies estab-
lished by the United American Lines
group. controlled by w. A. Hartman,
in other trade routes, notably the north
Atlantic. Mr.. Becks comment was as
follows:
when the American Hawaiian Steam
ship Company resumed its coast to coast
service in the fall of 1920 1t decided to
join the Conference. which had already
been organized by other lines then en-
gagged in the trade. This decision was
reached in the belief that through such
an association it would be possible to
establish and maintain equitable rates
and practices. fair to shipper and carrier
alike, and provide the stable conditions
which are so highly desirable to all
concerned
AFTER almost two years. of trial we
must reluctanly admit that the Confer
ence has Utterly failed in its purpose. Our
individual efforts to maintain equal
rates and conditions for all have been
frustrated by the failure of our assv-
ciates to follow the same policy and the
trade has become honeycombed with
discriminatory rates. rebates and other
questionable proctices.
Having failed to accomplish it's main
purpose the restrictions of Conference
membership become only an obstacle to
progress and we have therefore decided
to withdraw"
A meeting will be held to-day by the
remaining lines in the Conference, in
cluding the Luckenbach Steamship Com
rany. North Atlantic and Western
Steamship Company. Pacific Mail Steam
ship Company, Williams Steamship Com
pany and Atlantic Gulf and Pacific
Steamship Company.
WASHINGTON. June 81. - Shipping
Board officials were said tonight to be
watching with keen interest develop
ments within the Atlantic Intercoastal
Conference as indicated to-day by the
withdrawal of the American Hawaiian
Steamship Company.
Organization of the conference as
means OF preventing cuthroat competi-
tlon during the continued period of dull
ness in ocean shipping was fostered by
the board and it was said that disruption
OF the agreement at this time would be
considered extremely unfortunate.
The boards interest, 1t was explained,
was entirely from the viewpoint of the
American merchant marine as a whole.
since the conference is composed almost
entirely of tonnage privately owned.