Evening star., 1924-04-03
D|SCORD ARISES
OVER Marine LAW
Shippers and Merchants 0p-
pose Preferential Rate
Clause in Jones Act.
BY J. C. ROYLE.

/ Special Dispatch to The Star.
NEW YORK, April 3.--preliminary
skirmishes took place today in the
struggle over enforcement on May
20 of section % of the Jones mer-
chant marine act, under which goods
imported or exported in American
! ships would be entitled TO preferen-
tial railroad rates in this country.
Each side in the controversy is
| massing its forces, and the struggle
promises to be sharp and bitter.
Scores of importers, exporters, rail-
| road men and merchants gathered in
Washington to attend the hearings
| before the House committee on mer-
chant marine, while the United States
| Shipping Board and its adherents
prepared to combat this opposition
I to enforcement of the act.
View of Board Member.
| Commissioner Frederick 7. Thomp-
! son of the Shipping Board outlined
| the attitude of that body today when
! he declared that since the board has
certified to the Interstate Commerce
| Commission that ample American
ports and exports in American yes
sells, the act must go into effect on
the date specified, unless Congress
passes a law providing otherwise.
of section Is of the merchant marine
I! act viii augment greatly the tonnage
moving in American ships, tend to
stabilize financially the operation of
strategic trade routes, be helpful to-
ward the ultimate acquisition of
ships by private operators now en-
gagged in overseas trade and lessen
tho losses now entaiIed by govern
mcnt operation of vessels" he said.
1T is to be hoped the Shipping
n I'M III 1iNh1
essential trade routes in order that
both the spirit and fhe letter of the
law might be met, will be given op-
portunity to test the beneficial as
which was unquestionably designed
| by Congress to bring into being a
merchant marine representative of
the position occupied by the United
states among the nations
shippers and Merchants Oppose.
Shippers. merchants and railroad
! men, in opposing this view, ask We
| hemenuy why they should be forced
| at inconvenience and cost to them
selves to bolster up the Shipping
/ Board. the policy of which many of
them oppose? The Merchants Asso-
action to secure repeal OF section
t2s, declaring it can only lead
/ to retaliation by other nations.
! Members of the association point out
ttdt IL the provisions OF the Sectlon
/ are made effective foreign buyers
will insist on making their purchases
I OF American goods c. i. f., or cost
| Insurance and freight, which would
| allow the buverS to specify that the
goods he shipped in ships of their
own countries, and that they would
= he in position to make the American
/ producer stand the difTerential in
freight rates thus incurred. Import
! erS say that foreign producers, by
4 sol inc n Ialf kaIs oi
make them stand the difference on
goods shipped to this country. Sew
eral foreign nations already have
! protested against operation OF the act
! Claim of Railroad Men.
| Railroad men claim that the opera
| tiOn of the section would create dis
crimtnation between domestic roads
! engaged in interstate commerce. The
! American Steamship Owners ASso-
citation also opposes the measure and
advocates an amendment proposed by
Representative Newton of Minnesota,
which would place enforcement of
preferential rates at the discretion of
the Interstate Commerce Commi on.
The United States -four millerS and
! -four exporters have taken an even
more emphatic stand. They boldly
question whether there are enough
| American ships to handle shipments
satisfactorily. \ memorandum issued
in their behalf today says unless the
Shipping Board can be induced TO
withdraw its certification. business
interests will he Obliged to ATTACK
the ruling of the Interstate Commerce
Commission, making the provisions of
section rs effective, by raising the
question of fact as to the adequacy
of American services.
Injunction Suggested.
Other business interests consider
that moro effective action may be
taken against the operation of the
preferential rates by means of ap-
plication for injunctions from the
courts. The Newton amendment is
strongly supported by some OF the
grain shippers of the middle west,
who will appear before tho House
committee to urge its adoption. In
ouiry among members of the house
committee indicates that the majority
committee members oppose a lifting
of preferential rates in American
bottoms and express the opinion that
1t would be difficult to convince the
committee q change was necessary
The committee, they indicated, was
committed to a policy of protecting
American bottoms by preferential
rates to and from American ports
on goods for shipment under the
Amf rican flag.