New-York tribune., 1922-04-25
Shippers Clash
On Preferential
Railroad Rates
Sharp Debate Aroused al
Shipping Board Hearing
on Enforcing Section %:
Grain Men Decry the Act
Predict the Law Will Fail
commissioners Unable to
Get Facts on Adequacy
of American Ship Lines

Broadway or the adequacy OF Amer-
,csn ship lines to handle traffic moving
1t preferential railroad rates to sea-
board, developed numerous opinions
from the witnesses on the effect OF
the law but few facts.
Grain shippers, exporters and freight
broker. testified that it the preferential
rail rates were confined to shipments
or American vessels, as contemplated
by Section IS OF the Jones act, they
either would impose serious handicaps
on the trade or divert most Of the traf-
&c TO Montreal
At the opening Of the session Com
missioner T. /. Thompson, chairman of
the com mittec, read q statement eX-
planning that the law was on the stat
ute books and must be enforced as soon
the board was satisfied that Amer
lcaN vessels could care for the ship
nonts.
Steel and Grain Men Oppose 1t
It developed Immediately that sh ip-
pers of steel and grain products we're
out in force to denounce the law which
they said would restrict competition,
would fail to accomplish the purpose
Of aiding the American merchant ma
'ine, and was obnoxious in every de-
tail They were not prepared to an
swer questions on the proportion of
shipments carried on foreign and Y.
:. SHIPS, or what routes were served
adequately, and what were not
Z. 7. 3arrows. freight broker. read
resolution adopted by the board Of
managers OF the New York Produce
Exchange stating that enforcement of
Section 28 would create an "impos sible
situation" and that there was not suf-
fcient American tonnage to handle the
traffic The Shipping Board commits
sIoners developed the fact that in pass
Ing this resolution, the board of man
ayers bad acted from their general
knowledge of conditions, and that they
mad not made study Of the effect Of
the section in detail. with reference to
particular routes. Under cross exam
nation from Mr.. Thompson, and also
from Admiral W. S. Benson and Com.
missioner George E. Chamberlain. the
other members Of the committee, Mr..
barrows admitted that there might be
enough American ships on some
services
forecasts Higher Rate.
The same situation developed with
regard TO the testimony of Walter
Moore, member of the Produce Ey-
Grange, who said that he was not
armed with facts, figures and
statlStics' but expressed the belief,
rom thlrty-nine years Of experience.
.na' me Net result OF enforcing Sec
'lon Is would be to increase the
cnarees of transportation, and that the
dlh erentlal would not be enough to
promote the growth of American shin
pins' Mr. Moore said that in 1921 he
had closed ll8 steamers for the ship
ment OF grain and that oil 20 +haso
we're foreign because he could not get
smeHcan shlpS at as favorable
heures'
Heorge Jackson, of Baltimore, de-
ciaFea mat II Section 2s was enforced
me shipments OF grain through United
"t''eS poltS would dwlndle rapidly and
post of it be diverted to Montreal.
Nihety per cent of the grain to
ion'real' ne SAID moved by water and
vas Hpt SUBJECT to changes in rail
,ria S;es o' lh's reason, ne asserted, ap-
pllcat'oh OF the law would kill the
,amc through baltimore, regardless
OF sunlclency OF tonnage.
United State Ships Garry 25 Per Cent
Commissioner Thomnson drew fron,
VI jackson the fact tbat eo Wv r. .u.'.
~ the grain nov.r,e,t tbrtL pot.;
more is at = timo vben Ma.i 20
closed hv ice. and nsde r,roh sc ~ y
argument that cnforcon,o,,, ~, VI I'e
tion would have no eject upon tbis
Par o1 the trade. Mr.. Jackson testified
mat ms hrm buys grain and ships it
unropgh every Atlantic port. APPROX
nlaleIy 20 per cent Of the shipments
Salu' "ent on American and rs on
1orelgn vessels.
a. Nommlssiones Thompson sad that
~ ooalo IS seeking the voice of those
rho are not personally connected with
oi.;sn enIpp'ng INTERESTS, and that
.p'HIons expressed by others will have
!o Innuehce on the decision. For this
IrdSoH facn witness Ior commercial
ott"htnat'oh ~ was asked to supply names
arg aNiilatlons 81 the officials.
al OF the witnesses examined yester-
%%aS FepreSented ,e n the grain trade Of
reW ork, Baltimore or Philadelphia.
hey were unanimously opposed to the
icIei'enNai rates as applied to Amer
, o"n Sr,ps Only. Ihere were no spokes-
"'1H 1oI general cargo interests.
,h;. 'e lepIesehtative from Philadel-
pmIa George u. omeriey said that "the
IJes sdeIn.;s on american ships from Phil
,oorp., SeIe miserable. horrible last
uI1, anu .hat most British buyers
~ dna. va. 'ne use OF American ships"
.o, Uor .. ooupt ,ha,' SAID Mr. Thomp
a,,d Gnu "lsh american exporters