The New York herald., 1922-06-07
FAR EAST LINES PUT
TEETH In COMPACT
Each Conference Member Will
Put Up $4,000 to Assure
It's Obedience to Rates.

Members of the Far East conference
agreed yesterday on an entirely new
form of rate agreement-one which will
carry a heavy cash penalty for viola
tions of the established tariffs Only
details and legal questions remain to be
worked out to complete an organiza-
tion which is expected to end the devas-
tating rate wars to which ocean ship
ping has been subject in the last two
years.
Instead of the usual form of Ship
ping Board conference. which repre-
eents hardly more than a gentleman's
agreement to maintain rates, the Far
East lines are prepared to post a cash
forfeit or bond, of probably $4,000
each as a guarantee of their adherence
TO the conference tariffs. One of the
points on which legal counsel is being
sought is whether the cash or bond for
felt will be most effective,
In the event of violation OF the
rate schedules, 'iquidated damages
vii. be assessed. The offender will be
required to pay the full amount of the
damage he causes to other conference
members. whether through loss of
freight. delay in sailing in ballast or
other circumstances. 1t has not yet
been decided whether the conference as
a whole or a committee. or an outside
OF rate cutting and assess the damages
An important consequence of the new
FORM of agreement. in the view OF
steamship men, is the winning over of
the outside" lines-those which have
hitherto remained aloof from the con-
ference 'on the ground that 1t offered
no guaranty against rate cutting. Nor
ton, Lilly & Co., Funch, Edge & Co.
and the Dollar Steamship Company. not
in, fha haN
their willingness to sit in the new game
With the agreement among the lines
operating from Atlantic coast ports to
the Far East, the companies in trans
pacific trade will organize similarly at
San Francisco, according to assurances
received here. where a subcommittee of
the transpacific conference meets occa-
sionally. Robert Dollar, president of the
Dollar Steamship Company. which oper-
ates from both the Atlantic and the
Pacific. is known to b. a stanch be-
lever in the bonding plan.
The need for an agreement grew out
OF series of rate wars in Far Eastern
shipping. beginning. here about eight
months ago and spreading to the Pacific
after the differences in the Atlantic con-
ference had been patched up. Until
lately the transpacfic lines have been
at loggerheads, and 1t IS understood that.
although they have been ready to sto q
fighting for some time. they have be en-
awaiting the outcome of the nego' is.
tions at New York.
The idea of a bonded form of coIIfer-
ence organization is credited gen Erally
TO the Shipping Board. and it is b6yieved
that its successful operation In ne Far
Eastern trade will be followed BIZ efforts
to bring it about in other route &
Present at the meeting in The Snip
ping Board offices at 45 Broa Iway were
representatives of the Kerr Steamship
Company. Barber Steamsh' y Company.
Nippon Yusen Kaisha. c kaka Shosen
Kaisha. Togo Kisen Kai ma, Mitsui x
Co., Suzuki G. Co and the TX Line With
the formal acceptance of the agreement
by the outside lines tn A-e will remain
only occasional tramp ~ panese sailings
out Of Gulf ports to d s. urb the serenity
OF the conference. Al ic ther meeting will
be held Thursday to crnsider details and
hear legal opinions. +