New-York tribune., 1922-09-10
Far East 4 act
Is Plan TO End
ShipRate " ars
Steamship Companies Await
Success of Effort 10 Put
Ocean Transportation ON
a Sound Business Basis
Binding Contract Drawn
Precedent To BE Followed
BY Other Conferences LIN
Move 10 Restore Tariffs

ence last, week OF blndiagI contract to
uphold freight rates marked the be-
ginning Of an important effortste raise
ocean transportation from the depres-
sion into which it has sunk in the last
two years The last twelve months has
been notable in marine history for the
unusual number Of rate wars, covering
every trade route of any significance.
Conferences were established only to
collapse again when it was found that
variogs members were directly or in
directly cutting under the agreed
tariffs
II was found by experience that the
ference document meant little, and that
more drastic measures must be adopted.
The Far East Conference led the way
in pan 10 naye each company put up
$4,000 in cash to guarantee the main
tenance of rates. The contract was
drafted carefully to ensure its legality
and its binding qualities. Under the
shipping act of 1916 such understand
ings are lawful when approved by the
Shipping Board.
The Far East Conference succeeded
in putting through its plan after sew
erai months of negotiation. Its ex-
ample is now being followed by the
Levant Conference, the East Coast of
South America and others. Companies
on other trade routes are giving con-
sideration to the question.
Outline of Agreement
The text of the Far East agreement
has been obtained and is outlined here
for the first time. 1t consists of TWEEN
ty-fiye articles.
The companies agree to maintain
tariff rates between North Atlantic,
South Atlantic and Gulf ports of the
United States and the ports of Japan,
China, IndoChina, Siam, Philippine ISL
ands and Straits Settlements, "for the
common good of shippers and carriers
by providing just and economical CO.
operation between the steamship lines
operating in such trades"
1t is provided that there shall be no
unjust discrimination against shippers
brokers, etc, and no rebates Of any
kind. Cargo is to be accepted only
at its actual weight or measurement
and payment must be made in United
States currency or its equivalent
There is to be no refund or any alb
sorption at losding or dischargina
4 ports of rail or coastal steamer
I freights or other charges. No freight
brokerage of more than "a per cent
shall be paid, except by action of the
conference.
Several sections then prescribe the
working rules of the conference, time
+ of meeting, appointments of members
and other details. Section 10 provides
for the deposit by each company Of
$4,000 in cash or United States gov,
ernment bonds. Section II reads:
Fourfold Penalty
"Inasmuch as it will be impossible
to ascertain or measure the amoun
of damages which the parties hereto
will suffer by reason of the breach O.
= this agreement, the parties hereto ex
pressly agree that the damages suf
fered thereby by each party hereto
shall be, and they hereby are, liqui
dated at pro rata part, based o,
the number of parties hereto, not in
cluding the party committing tn,
breach, of a sum equal to four time!
the amount of the freight moneys, o.
other compensation, which the part,
q committing such breach shall receiv,
for the transportation of any carg,
with respect 20 which such breach shat
occur
the agreement shall at any time submi
the question of breach and tn
amount of damages TO the determine
tIon of the arbitration committee o
s the New York Produce Exchange, or Z
two arbitrators, one to be chosen b.
( twothirds of the conference members
the other by the party charged, an
thlrd, to act as umpire, by the frs
two
ft1,. I !. II
tion committee, or the two arbitrators
are given full authority to determin
whether breach has been committe
and the amount of damages.
Provides Arbitration
Section i4--"The parties hereto agre
to accept and abide by the award o
said arbitration committee Of the Ne,
York Produce Exchange, or of tn
nominated arbitrators, if the arbitra
tion is had before them, and furthe
agree that judgment of the Suprem
Court of the State of New York ma
be entered upon any award made pur
sqant to such submission before eithe
the said arbitration committee, or sal
nominated arbitrators, as provided b
the laws of New York"
Section Is provides that the awar,
snail not be cverthrown except 70
SSAitSASki ol corruption OF Tn
arbitrators.
Section 16 states that unless tn
guilty party shall pay the damage
awarded within ten days then execu
ton may issue on such iudgmen
against the goods and chattels of tn
lu5Ginent debtor and upop she $500
deposit.
Section IL "The secretary. or an,
other person designated by two-third
Of the parties hereto, shall be entitle,
70 examine any of the books. records
<ccounts and documents of any part,
hereto charged with a breach of thi
agreement BY the fling of complain;
IS hereinbefore provided, for the pur
pose OF aGducing evidence in suppor
ot any such charge. and the refusal O
the party charged with such breach t,
permit any such examination shall con
stitute a breach Of this agreement. an.
shall be subject to the fling of com
pfaillt and proceedings before the arbi
tfation committee OF the New Yer
Produce Excharge or other nominate,
arbitrstors, and an award nnd iudg
nlsnt for damages as hereinbefore pro
viaed with respect to any other breacl
of this aggeement,p
Ninety DAYS TO Withdraw
Section IS 1.-THE testimony of an,
party charged by the fling OF com
plant with breach Of this agreement
or of any other party hereto, or of an,