Evening star., 1924-04-20
PREFERENTIAL RATE
DELAY is ORDERED
I. c. c. Postpones Effectiveness of
Section % Until June 20
to aid Carriers.
COMMISSION rs RESTRICTED
Declares Inability to Question Ship
Board Evidence.
COMMISSION IS RESTRICTED

The effective date of section IS of the
merchant marine act of 1920 was de-
layed from May 90 to June 20 yesterday
by the Interstate Commerce Commits
sion.
The action was taken to give rail car
rters sufficient time in which to adjust
their schedules so that the rates which
VIII be put into effect to carry out the
provisions of section Is will conflict as
little as possible with the interstate
commerce act. and minimize disturbance
and controversy as to the application of
both that and the merchant marine act
Commissioner Potter rendered the only
dissenting opinion
Boards Duty Restricted.
In granting the delay the commission
held that the law restricts it's duties to
administration. and that it has no power
TO question conditions in the shipping
INDUSTRY as represented to ii by the Ship
ping Board.
The order explained that section 2S,
winch provides that where preferential
ralroad rates are given to goods going
TO import or export through American
ports the ocean shipment must he made
IN American bottoms. does not confer
tficates made to us by the board. or to
determine the facts as to adequacy of
Shipping facilities independently or
otherwise than as certified to us by the
board
Our power under section IS" il was
added, extends to fixing in our order
llfting the suspension of that section
such reaSona bic effective date as
should enable the carriers subject TO the
prohibitions of that section to comply
in a aYlx
and to avoid violations of the law BY
bringing their tariffs into conformity
with section 2S, in so far as that may be
oone, while observing the mandates of
the interstate commerce act.
Asks Railroad Aid.
This additional period should be
utilized by the rail carriers in the en-
deavor to adjust their schedules so
that the rates which will be put in
Tor the purpose of complying with
the. mandate of section IS of the
merchant marine act will conflict as
little as possible with the outstand-
ing provisions of the interstate COM
merce act, and minimize the disturb
ance and controversy as to the ap-
pllcation OF the respective statutes" "
The order was based on representa-
tions of railroads and shippers
throughout the country that applica-
tton OF the section would create pref
erential rates and Determinations
'o4 'SNS pa - ollA UCh" cen
certain goods
Representatives of the shippers and
railroads, appearing before the COM
mission Thursday asked an ex-
tension of six months in which to re-
adjust railroad rates and to prepare
their industries for the change. They
recited that hearings on the section
had just been closed by the merchant
marine committee of the House, and
that a resolution was then pending
before the committee TO postpone en-
forcement of the section until June
l, 1925.
Declares Vessels Sufficient.
Commissioner Potter. dissenting.
declared that the certificate of the
Shipping Board that there are now
sufficient American vessels to carry
American trade, was merely an opin-
ion of the board, and that hearings
should be held by the commission TO
determine whether available Ameri-
can ships are adequate to carry
American exports. sSSstr.s y .s.ss.7s:.V
IF. as the majerftyk5IaS determined
il was our duty to lift the .suspen-
sion upon being advised Of the Ship
ping Boards opinion, the dissenting
opinion said, we have no authority
TO postpone the effective date beyond
the period reasonably required TO put
the machinery into effect We, have
in that event no power TO consider
commercial conditions. To eonsider