New-York tribune., 1922-08-14
Shipping Board
Faces Issue ON
J.S.Competition
Decision on Government
Vessels in Iniercoasial
Service Will Set a Prece-
dent for All Runs
Ship Owners Prepare Case
Association Will Meet TO De-
termine Attitude on u.
s. and Private Lines


A precedent which may have eonsid-
~rable influence on the operating policy
= the Shipping Board will be set when
she commissioners in Washington reach
decision after the hearing next
Thursday on the protest Of the Ameri-
can Steamship owners Association
aainst participation Of government
Gamers in the ,ntereoastal trade.
In this case private owners Of about
chty vessels Of 100000 deadweight
rs object 20 operation by the North
.tlantic and Western Steamship Com
my Of four government ships between
~ Atlantic and Pacific coasts. The
r sition Of the owners is that the coast
Use traffic is reserved 10 American
hips By legislation and that there IS
question Of foreign competition.
he private tonnage. il is asserted, Is
mple for all requirements and there
Is no justification for the Shipping
1oard line.
Nawsco Line Protected
The inclination Of the board previ-
oisly has been TO protect the interests
d. the North Atlantic and Western
,.amship Company and 20 give the
s1mpany an opportunity 20 purchase
O. ships later. When the same issue
rose before Admiral Benson, as chair
~ Of the board. he decided that the
rlwseo Line had entered the route
i. hen il was abandoned by the private
-es 20 participate in the more proft-
de transatlantic business. For this
r.ason. Admiral Benson held, the
.awsco was entitled 20 a chance TO
b IKE good and 10 fulfill its promise 70
sy ships from the government.
IN deciding this question the board
til have 10 consider other eoniro-
,e~sies Of a somewhat similar nature.
instance. n rate war IS now in
gress between New York and Co
mbian ports between American ships
e. the United Fruit Company and gov
nment vessels operated BY the Clyde
ne. The board refused 20 withdraw
is ships on this route on the ground
lat this would react more 70 the sd-
ntage Of foreign companies in the
West Indies service than 20 the United
rsit Comsany.
Freight Issue Up
The Iuckenbaeh Line raised another
ue when IL offered 70 put its own
,.ssels in the New York-Rotterdam
ate on condition that the board with
traw its boats operated by the Black
almond and Cosmopolitan lines.
In addition 20 the problem Of gov
nment competition. the Shipping
card committee at the hearing will go
irto the general subject Of intercostal
eight rates and their relation to
anscontinental railroad traffic. Even
icfore the collapse Of the Atlantic in
reoastal conference in June. due 10
no withdrawal Of the American
lawaiian Steamship Company the
ater lines got practically all Of the
hipments between the Atlantic and
seihc Coasts and reached as far as
90 miles inland for traffic. Since the
4 sruption. which has resulted in
cline Of 30 per cent in rates, the
,fater lines draw traffic from 1000
niles inland on each coast. The rail-
Dads are badly hurt.
On several occasions in the last two
ears the rail carriers have asked the
Interstate Commerce Commission for
permission 70 adjust their rates TO
meet the charges by water through the
nanama Canal. In spite Of numerous
earrings, the commission mas not YET
cached a decision and is reluctant 20
suspend the provision Of the Interstate
Commerce act forbidding the railroads
% charge less for n long than short
aul. which would be necessary II the
land carriers were 20 bid for the trans
~ontinental business ard at the same
time maintain their revenues from
,saffic in the interior.
Rates Not Flexible
Another point raised by the rail
lines Is that they cannot adjust their
rates without tedious hearings before
the commission. while the water lines
can change their tariffs overnight
The Shipping Board apparently in
|. lends 20 60 into the question Of gov
ernment supervision. through the
board or the commission. OF inter
coastal rates As coastwise trade is
restricted by law % American vessels.
ne rates can easily be controlled.
though such action would meet with
strong protests from the steamship
companies.
The American Steamship Owners
Association will hold several meetings
this week. at which it will work cut
the position IL is 20 take al the hear
ings Each Of the companies IN the
.vodc will have n rerreaonfotiyp NJ